Table of Contents
Executive Summary
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- Overview
- The issues
- Four segments of Hispanic shoppers approach food and drink shopping with different motivations
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- Figure 1: Hispanic food and drink shoppers’ attitudinal segments, August 2018
- Brands need to look beyond product/pricing to stand out
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- Figure 2: Important attributes in food and drinks Hispanics buy – Top 5, August 2018
- Hispanics don’t associate many store types with key attributes
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- Figure 3: Perceptions of types of stores, August 2018
- The opportunities
- Appeal to Hispanics’ sense of responsibility
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- Figure 4: Grocery shopping responsibility, indexed to all, August 2018
- Recruit Enthusiastic Shoppers as brand ambassadors for in-store prepared food
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- Figure 5: Hispanics’ attitudes toward in-store prepared food, by attitudinal segments, August 2018
- Stress the positives to reinforce Hispanics’ perception of value
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- Figure 6: Share of Hispanics who spend more money than they should grocery shopping, by household income, August 2018
- What it means
The Market – What You Need to Know
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- Hispanic households’ grocery expenditures show moderate growth
- Factors affecting how Hispanic shopper for food and drink include:
- Hispanics shoppers have different motivations driving behavior
Market Size
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- Hispanic households’ expenditures for groceries is nearly $100 billion
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- Figure 7: Hispanic household expenditures for groceries, at current prices, 2013-18
Market Perspective
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- The youth of the market fuels their enthusiasm but also their lack of engagement
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- Figure 8: Hispanic share of total US population, by age, 2018
- Preferences of more household members influence Hispanic shoppers
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- Figure 9: Average number of people per household, by race and Hispanic origin, 2017
- Figure 10: Households with related children, by race and Hispanic origin of householder, 2017
- Hispanics prioritize saving across household income levels
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- Figure 11: Median household income, by race and Hispanic origin of householder, 2016
- Figure 12: Household income distribution by race and Hispanic origin of householder, 2016
- Figure 13: Consumer reported household income, by Hispanic origin and language spoken at home, April 2017-June 2018
- Hispanics more likely to be Cooking Enthusiasts
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- Figure 14: Cooking segments, Hispanics vs all US Consumers, [Hispanics] April 2018; [all US Consumers] July 2018
Food and Drink Shopper Attitudinal Segments
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- There are four segments of Hispanics shoppers
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- Figure 15: Hispanic food and drink shoppers’ attitudinal segments, August 2018
- Enthusiastic Shoppers (32%)
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- Figure 16: Profile of Hispanic Enthusiastic Shoppers, August 2018
- Pragmatic Shoppers (17%)
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- Figure 17: Profile of Hispanic Pragmatic Shoppers, August 2018
- Unengaged Shoppers (25%)
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- Figure 18: Profile of Hispanic Unengaged Shoppers, August 2018
- Confident Shoppers (26%)
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- Figure 19: Profile of Hispanic Confident Shoppers, August 2018
- Implications of Hispanic segments
- The importance of fitting in Hispanics’ routines
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- Figure 20: Hispanics’ attitudes toward grocery shopping routine, by attitudinal segments, August 2018
- Experience matters, but so does convenience
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- Figure 21: Hispanics’ attitudes toward experience when shopping for food and drinks, by attitudinal segments, August 2018
- The search for value keeps Hispanics open-minded
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- Figure 22: Hispanics’ attitudes toward value when shopping for food and drinks, by attitudinal segments, August 2018
- In-store prepared food valued by male-skewing segments
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- Figure 23: Hispanics’ attitudes toward in-store prepared food, by attitudinal segments, August 2018
Food for Thought – What You Need to Know
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- Hispanics may be getting ready for a breakthrough in online ordering
- Traditional supermarkets embrace Hispanic concepts
- Food and drinks offer plenty of material for social media content
Food for Thought
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- Tailwind for in-home delivery and online ordering
- Spanish-dominant and bilingual Hispanics show interest
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- Figure 24: Walmart’s Free Grocery Pickup – I like it – TV ad, November 2018
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- Figure 25: Hispanics’ attitudes toward in-home delivery and online ordering, by language spoken at home and household income, August 2018
- Figure 26: Hispanics’ attitudes toward in-home delivery and online ordering, by gender and age, August 2018
- Latin American online shopping trends can help less acculturated Hispanics become comfortable ordering online
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- Figure 27: Hispanics’ attitudes toward in-home delivery and online ordering, by country of origin/heritage, August 2018
- Blurring lines between Hispanic grocery stores and traditional grocery stores
- Can grocery stores use content to engage with Hispanic shoppers?
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- Figure 28: Olimpica’s social media video – Sabores de Colombia, Ep 2 (Flavors of Colombia, Ep 2), November 2018
The Consumer – What You Need to Know
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- Hispanic parents feel the need to claim grocery shopping responsibility
- Price and taste are the foundation to get Hispanics’ attention
- Sophistication and confidence go hand in hand
- Less affluent Hispanics are less likely to have remorse about how much they spend grocery shopping
- Hispanics use coupons on familiar products
- Store flyers and the need for digital versions
- Hispanics like Walmart
Grocery Shopping Responsibility
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- Hispanics can overstate their contributions to grocery shopping
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- Figure 29: Grocery shopping responsibility, indexed to all, August 2018
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- Figure 30: Grocery shopping responsibility, by gender and parental status, August 2018
- Hispanic women grow into the role
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- Figure 31: Grocery shopping responsibility, by gender and age, August 2018
Key Drivers for Food and Drink Purchases
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- Price and taste are key drivers
- Brand and tradition are secondary
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- Figure 32: Important attributes in food and drinks Hispanics buy, August 2018
- Priorities evolve with age
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- Figure 33: Important attributes in food and drinks Hispanics buy, by age, August 2018
- Gender roles influence key drivers
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- Figure 34: Important attributes in food and drinks Hispanics buy, by gender, August 2018
- Attitudinal differences don’t change core drivers
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- Figure 35: Important attributes in food and drinks Hispanics buy, by attitudinal segments, August 2018
Hispanics’ Shopping Approach
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- Are Hispanics shopping at multiple stores?
- Yes, driven by attitudinal differences rather than demographic differences
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- Figure 36: Share of Hispanics shopping at multiple stores, by key demographics, August 2018
- Do Hispanics know which store offers the best value for what they need?
- Yes, but those who shop at fewer stores are not convinced
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- Figure 37: Walmart’s Savings Catcher savings notification email, November 2018
- Figure 38: Share of Hispanics who know which store offers best value, by key demographics, August 2018
- Do Hispanics have a fixed budget for grocery shopping?
- Less affluent Hispanics try to stay within a fixed budget
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- Figure 39: Share of Hispanics with a fixed grocery shopping budget, by key demographics, August 2018
- Do Hispanics feel they spend more money/time than they should grocery shopping?
- Some regrets signal need for action
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- Figure 40: Share of Hispanics who feel they spend more money/time than they should grocery shopping, by key demographics, August 2018
Tools to Connect with Shoppers
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- The importance of empowering shoppers
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- Figure 41: Hispanics’ grocery shopping dynamic, August 2018
- Figure 42: Hispanics’ grocery shopping dynamic, by attitudinal segments, August 2018
- Do Hispanics use coupons?
- Yes, but technology may help even more
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- Figure 43: Dollar General’s acquisition mailing, September 2017
- Figure 44: Share of Hispanics who use of coupons if they can, by gender and age, August 2018
- Do Hispanics embrace loyalty programs?
- Yes, but rewards need to be achievable
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- Figure 45: Share of Hispanics who feel rewarded when using store loyalty cards, by language spoken at home and household income, August 2018
- Do Hispanics find store flyers useful?
- Yes, but age influences engagement
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- Figure 46: Hispanics’ opinion about store flyers helpfulness, by gender and age, August 2018
- Does having Hispanic foods and beverages make a difference?
- Hispanic foods and beverages help to remain top-of-mind
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- Figure 47: Importance of having Hispanic foods and beverages, by language spoken at home and household income, August 2018
Grocery Shopping Destinations
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- On average, Hispanics typically shop at multiple places
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- Figure 48: Hispanics’ grocery shopping destinations, August 2018
- Attitudes toward shopping influence where Hispanics shop
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- Figure 49: Hispanics’ grocery shopping destinations, by attitudinal segments, August 2018
- Preferred brands and atmosphere drive Hispanics’ loyalty
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- Figure 50: Correspondence Analysis – Perceptions of types of stores, August 2018
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- Figure 51: Perceptions of types of stores, August 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
- A note about acculturation
- Correspondence analysis’ methodology
Appendix – The Market
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- Figure 52: Hispanic household expenditures for groceries, at inflation-adjusted prices, 2013-18
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Appendix – The Consumer
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- Figure 53: Hispanic Enthusiastic Shoppers’ grocery shopping destinations, indexed to all Hispanics, August 2018
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- Figure 54: Hispanic Pragmatic Shoppers’ grocery shopping destinations, indexed to all Hispanics, August 2018
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- Figure 55: Hispanic Unengaged Shoppers’ grocery shopping destinations, indexed to all Hispanics, August 2018
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- Figure 56: Hispanic Confident Shoppers’ grocery shopping destinations, indexed to all Hispanics, August 2018
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