Table of Contents
Executive Summary
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- Hispanics spend $79.8 billion on groceries
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- Figure 1: Expenditures by Hispanic households on groceries* and fan chart forecast of market, at current prices, 2010-20
- The issues
- Hispanics have a positive attitude toward shopping
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- Figure 2: Hispanics’ shopping behaviors – Liking, June 2015
- Hispanics shop at multiple retailers
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- Figure 3: Hispanics’ frequency of shopping by location, June 2015
- Price, product mix and location drive store selection
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- Figure 4: Factors influencing where Hispanics shop, June 2015
- The opportunities
- Going outside your comfort zone
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- Figure 5: Correspondence analysis – Grocery shopping location, June 2015
- Connecting through Hispanic ingredients/foods
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- Figure 6: Hispanics’ shopping behaviors – Finding Hispanic ingredients/foods, June 2015
- Using in-store marketing tactics to appeal to Hispanics
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- Figure 7: Factors consumers refer to for finding and choosing items, by Hispanic origin, April 2014 – June 2015
- What it means
The Market – What You Need to Know
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- Market factors create fertile ground of Hispanics’ expenditures on groceries to grow
- The majority of grocery expenditures go to food and drinks
- A variety of market factors point to a positive outlook
Market Size and Forecast
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- Hispanics’ expenditures on groceries projected to grow steadily
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- Figure 8: Expenditures by Hispanic households on groceries* and fan chart forecast of market, at current prices, 2010-20
- Figure 9: Expenditures and forecast by Hispanic households on groceries*, at current prices, 2010-20
Market Breakdown
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- Food and drinks account for the majority of expenditures on groceries
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- Figure 10: Expenditures by Hispanic households on groceries*, by segment, 2015
- Hispanics’ expenditures on food and drinks projected to grow steadily
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- Figure 11: Expenditures by Hispanic households on food and drink* and fan chart forecast of market, at current prices, 2010-20
- Growth on Hispanics’ expenditures on general merchandise/household supplies to remain stable
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- Figure 12: Expenditures by Hispanic households on general merchandise**/household supplies* and fan chart forecast of market, at current prices, 2010-20
- Hispanics’ expenditures on HBC see modest growth at MULO retailers
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- Figure 13: Expenditures by Hispanic households on health and beauty care (HBC)* and fan chart forecast of market, at current prices, 2010-20
Market Factors
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- Improving labor market for Hispanics has a positive impact on their confidence
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- Figure 14: Hispanic unemployment, January 2007- June 2015
- Hispanics’ purchasing power projected to reach $1.7 trillion by 2019
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- Figure 15: Purchasing power, by race/Hispanic origin, 1990-2019
- Hispanic market becoming more bicultural
- Hispanics live in larger households
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- Figure 16: Average household size and average number of adults and children in households, by race and Hispanic origin, 2014
- Hispanic households more likely to include children
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- Figure 17: Presence of children in household, by race and Hispanic origin, 2014
- Being Hispanic and a Cooking Enthusiast often go hand-in-hand
Key Players – What You Need to Know
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- If you have something to say, don’t hesitate to say it
- It’s all about communicating…
What’s Working?
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- It’s all about communicating – Savings opportunities
- It’s all about communicating – How to get the most out of a visit
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- Figure 18: H-E-B: How to use coupons video, April 2015
- It’s all about communicating – We get you
- It’s all about communicating – We have you need/want
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- Figure 19: Walmart: En Walmart queremos ayudarte a hacer tu dia un poquito mejor (At Walmart, we want to help you make your day a little better), October 2015
What’s Important?
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- Stores need to understand mix of Hispanics in their areas
What’s Next?
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- Grocery retailing is becoming increasingly competitive
The Consumer – What You Need to Know
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- Hispanic women still more likely to be responsible for grocery shopping
- Hispanics are shopping at multiple locations in a typical week
- Hispanics associate different store types with different categories
- Good, nice and cheap (Bueno, bonito y barato)
- Hispanics have a clear understanding of where to go and what to get
- Besides price, value is also important
- All for buying fresh; it depends for buying in bulk and brand names
- We the family
- Effectiveness of on-site tactics depends on level of acculturation
Grocery Shopping Responsibility
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- Hispanic men do shop for groceries, but women still in charge
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- Figure 20: Grocery shopping responsibility among Hispanics, by gender and age, June 2015
- Children change roles
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- Figure 21: Grocery shopping responsibility among Hispanics, by parental status and gender, June 2015
Frequency of Shopping by Location
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- Hispanics are shopping at multiple locations in a typical week
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- Figure 22: Hispanics’ frequency of shopping by location, June 2015
- Not all Hispanics go to the same stores
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- Figure 23: Hispanics’ frequency of shopping by location, by level of acculturation, June 2015
Grocery Shopping Destinations
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- Hispanics associate Walmart with multiple categories
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- Figure 24: Correspondence analysis – Grocery shopping location, June 2015
- Mass merchandisers expanding reach in food categories
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- Figure 25: Difference of Hispanics shopping at mass merchandisers minus Hispanics shopping at supermarkets, June 2015
Factors Influencing Shopping Location
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- Product, price and place still top reasons
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- Figure 26: Factors influencing where Hispanics shop, June 2015
- Less-acculturated Hispanics are less demanding
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- Figure 27: Selected factors influencing where Hispanics shop, by level of acculturation, June 2015
Grocery Shopping Planning
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- Based on what they need, Hispanics know where to go
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- Figure 28: Hispanics’ shopping behaviors – Knowing where to go, June 2015
- Hispanic women more familiar with where to go
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- Figure 29: Hispanics’ shopping behaviors – Knowing where to go, by gender and age, June 2015
- Grocery shopping becomes more specific with acculturation
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- Figure 30: Hispanics’ shopping behaviors – Knowing where to go, by gender and age, June 2015
- Lists guide Hispanics at the store
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- Figure 31: Hispanics’ shopping behaviors – Use of lists, June 2015
- Acculturated Hispanics more attached to a plan
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- Figure 32: Hispanics’ shopping behaviors – Use of lists, by level of acculturation, June 2015
- Finding Hispanic ingredients/foods is no problem
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- Figure 33: Hispanics’ shopping behaviors – Finding Hispanic ingredients/foods, June 2015
- It is harder to find Hispanic ingredients/foods for some countries
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- Figure 34: Hispanics’ shopping behaviors – Knowing where to go, by country of origin, June 2015
Grocery Shopping Appeal
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- Hispanics like or are indifferent toward grocery shopping
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- Figure 35: Hispanics’ shopping behaviors – Liking, June 2015
- Grocery shopping is more appealing among Hispanic women
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- Figure 36: Hispanics’ shopping behaviors – Liking, by gender and age, June 2015
- Unacculturated Hispanics find grocery shopping more enjoyable
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- Figure 37: Hispanics’ shopping behaviors – Liking, by level of acculturation, June 2015
- Coupons and promotions – Yes, but with caveats
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- Figure 38: Hispanics’ shopping behaviors – Coupons and promotions, June 2015
- Coupons and promotions loose appeal as household income increases
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- Figure 39: Hispanics’ shopping behaviors – Coupons and promotions, by household income, June 2015
- In-store sampling effectiveness depends on many factors
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- Figure 40: Hispanics’ shopping behaviors – In-store sampling, June 2015
- Receptiveness for in-store samples changes by acculturation
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- Figure 41: Hispanics’ shopping behaviors – In-store sampling, by level of acculturation June 2015
Considerations When Deciding What To Buy
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- Not all brands are created equal
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- Figure 42: Hispanics’ shopping behaviors – Brand names vs private label brands, June 2015
- Private label brands more appealing among less-affluent Hispanics
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- Figure 43: Hispanics’ shopping behaviors – Brand names vs private label brands, by household income, June 2015
- Fresh is important
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- Figure 44: Hispanics’ shopping behaviors – Fresh vs packaged foods, June 2015
- Hispanic men more likely to make compromises regarding freshness
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- Figure 45: Hispanics’ shopping behaviors – Fresh vs packaged foods, by gender and age, June 2015
- Buying in bulk saves money, but may not always be the right thing to do
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- Figure 46: Hispanics’ shopping behaviors – Buying in bulk, June 2015
Grocery Shopping Stake Holders
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- What to buy is decided based on consensus
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- Figure 47: Hispanics’ grocery shopping stake holders – Me vs family, June 2015
- Ask mom for it
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- Figure 48: Hispanics’ grocery shopping stake holders – Me vs family, by gender and age, June 2015
- Like it or not, family participates
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- Figure 49: Hispanics’ grocery shopping stake holders – Alone vs with family, June 2015
- Acculturated Hispanics prefer to shop alone
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- Figure 50: Hispanics’ grocery shopping stake holders – Alone vs with family, by level of acculturation, June 2015
- There is no rule about giving in to requests from children
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- Figure 51: Hispanics’ grocery shopping stake holders – Children’s requests, June 2015
Marketing Tactics for Finding and Choosing Items
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- Hispanics less likely to respond to in-store tactics
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- Figure 52: Factors consumers refer to for finding and choosing items, by Hispanic origin, April 2014 – June 2015
- On-site tactics more effective as Hispanics become more acculturated
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- Figure 53: Factors Hispanics refer to for finding and choosing items, by language spoken at home, April 2014 – June 2015
Appendix – Data Sources and Abbreviations
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- Data sources
- Expenditures data
- Definition
- Fan chart forecast
- Consumer survey data
- Correspondence analysis methodology
- Abbreviations and terms
- Abbreviations
- Terms
- A note on acculturation
Appendix – Market
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- Figure 54: Expenditures by Hispanic households on groceries*, at inflation-adjusted prices, 2010-20
- Figure 55: Expenditures by Hispanic households on food and drink*, at inflation-adjusted prices, 2010-20
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- Figure 56: Expenditures by Hispanic households on general merchandise/household supplies*, at inflation-adjusted prices, 2010-20
- Figure 57: Expenditures by Hispanic households on health and beauty care products*, at inflation-adjusted prices, 2010-20
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Appendix – Consumer
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- Figure 58: Factors Hispanics refer to for finding and choosing items, by gender, April 2014 – June 2015
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- Figure 59: Factors Hispanics refer to for finding and choosing items, by age, April 2014 – June 2015
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- Figure 60: Factors Hispanics refer to for finding and choosing items, by household income, April 2014 – June 2015
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