Nielsen report: US Hispanic market as valuable as BRICs?

The US Hispanic market represents significant growth opportunities for food and beverage companies within the United States, with per capita income higher than that in any BRIC economy (Brazil, Russia, India and China) according to a new report from Nielsen.

In its latest report, “State of the Hispanic Consumer: The Hispanic Market Imperative”, the market researcher said that addressing the Hispanic market is vital to business growth. The US Hispanic population numbers more than 52 million, and is set to represent the majority of population growth in the United States in the next five years. In addition, its collective buying power is projected to grow by 50% during that time, from $1 trillion in 2010 to $1.5 trillion by 2015.

“Many companies believe that significant growth opportunities come from outside the US, but the Hispanic market offers unique growth prospects within our borders,” the report said. “If it were a standalone country, the US Hispanic market buying power would make it one of the top twenty economies in the world.”

In particular, marketers should understand that the Hispanic community is very young in relation to the US population as a whole, with a median age of 28, compared to a median age of 37 for the total market, the market researcher said.

Nielsen’s vice chair, Susan Whiting, said: “The Hispanic community in the United States is large and growing, and businesses must make strides to understand and engage these consumers.  Due to the general youth of this segment, family focus, strong culture and prevalent Spanish-language use, Hispanic consumers are impacting all areas of work and play and helping to redefine American culture in the 21st century.”

For marketers, the report also outlines the way Hispanic audiences consume media, in patterns that are distinct from the general US population. In particular, Hispanics spend 68% more time watching video on the internet and 20% more time watching video on their mobile phones than non-Hispanic whites, it said.

The full Nielsen report is available to download here.