Hispanics are the largest and fastest growing minority group in the US with a purchasing power projected to reach $1.6 trillion by 2018. Hispanics were hit hard by the 2008-09 recession; now that the recovery is gaining momentum, they are starting to increase spending in the areas in which they cut the most such as apparel and entertaining. Hispanics are value-oriented consumers and see themselves as frugal buyers. However, they don’t want to sacrifice quality at the expense of price.

Value figures throughout this report are at rsp (retail selling prices) excluding sales tax unless otherwise stated.

Expenditure estimates are derived from the CEX (Consumer Expenditure Survey), which is conducted annually by the US Bureau of Labor Statistics. The estimates are calculated using three-year rolling averages to reduce the volatility that can result from relatively small subsamples and items that are infrequently purchased.

• Market size estimates in this report are based on consumer data (estimated average expenditures aggregated to the total market), and may not be comparable to estimates in other reports that are based on point-of-sale data or retailer revenues.

• Note that the CEX measures spending by “consumer units” instead of households or individuals. See the Terms section for a definition of “consumer unit.”

For the purposes of this report, Mintel commissioned exclusive consumer research through GMI in partnership with Offerwise to explore Hispanic consumers’ shopping habits, purchasing behaviors, and attitudes toward shopping. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted in February 2014 among a sample of 1,000 Hispanic adults aged 18+ with access to the internet who are the primary/shared shopper for household products.

Please note that our surveys are conducted online in the participant’s language of choice (ie English or Spanish). Hispanics who are not online are not included in our survey results.

Mintel has also analyzed data from Experian Marketing Services, using the NHCS (Simmons National Hispanic Consumer Study). The Experian Marketing Services, Simmons NHCS was carried out during November 2012-December 2013 and the results are based on the sample of 23,689 adults aged 18+, including 7,101 Hispanics, with results weighted to represent the US adult population/US adult Hispanic population.

Note: When Experian Marketing Services, Simmons NHCS results are presented by language spoken at home, the sum of the subsegments may not add to the total, due to the fact that some respondents answered “some other language.”

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.

The following is a list of abbreviations used in this report.

Consumer Unit (CU): The US Bureau of Labor Statistics Consumer Expenditure Survey measures spending by consumer units rather than households. A consumer unit is all related members of a household or financially independent members of a household. A household may include more than one consumer unit. A Consumer Unit may be comprised of (1) all members of a household related by blood, or by a legal arrangement such as marriage or adoption, (2) a financially independent individual living alone, sharing a house, as a roomer in a private home, or in living quarters of a hotel or motel, or (3) two or more individuals living together, pooling their income, and jointly making expenditure decisions. There are slightly more CUs than there are households in the US.

Generations are discussed within this report, and they are defined as:

* also known as Generation Y or Echo Boomers

In order to provide an inflation-adjusted price value for markets, Mintel uses the CPI to deflate current prices. The CPI is defined as follows: