U.S. Hispanics typically spend more time and more money on their grocery trips, and by 2015, their buying power is projected to reach $1.5 trillion—a 50% increase from just a few years ago—making the U.S. Hispanic population an even more important constituency of shoppers, according to a new report from AMG Strategic Advisors.
The findings in this study can provides a detailed look at the Hispanic shopper as well as solid recommendations for retailers and CPGs to take to improve their relationships with this demographic.
“While most CPG companies realize that the U.S. Hispanic market presents a key growth area, many are still struggling with how best to capitalize on the opportunity,” said Graciela Eleta, one of Acosta’s senior Hispanic advisors. “
The findings include:
* U.S. Hispanic shoppers make more grocery trips and spend more across grocery trip types than total U.S. shoppers.
* On average, these shoppers make 4.1 routine grocery trips per month and spend $110 on each trip, compared to total U.S. shoppers who make 3.8 routine grocery trips per month and spend $95 on each trip.
* U.S. Hispanic shoppers are more loyal to national brands and are more likely to include specific brand names on their grocery lists.
* U.S. Hispanics’ place of birth and acculturation into the U.S. have a strong influence on shopping behavior.
* Higher grocery spending is driven by non-U.S. born, less acculturated Hispanics.
* 54% of non-U.S. born Hispanics shopped more at supercenters and club stores in the past year.
* Unacculturated Hispanic shoppers are more likely to be impacted by in-store promotions while coupons in the mail or from websites are more likely to influence acculturated Hispanic shoppers.
* U.S. Hispanic shoppers use digital tools more frequently than total U.S. shoppers as part of their shopping strategy.
* 69% of U.S. Hispanics report using technology devices in their grocery shopping planning compared to 61% of the total U.S. population.
* Facebook plays an important role for U.S. Hispanics, with 83% of Hispanic users “liking” or following brands compared to 79% of the total U.S. Population.
* U.S. Hispanics often follow brands that support similar causes and help tell a story of products they like while total U.S. shoppers primarily follow brands for coupons and special offers.
The report includes actionable recommendations on how brands and retailers can leverage digital and social media specific to Hispanics, build a multi-generational in-store experience that is Hispanic-friendly, and provide more healthy and fresh alternatives that appeal to Hispanic shoppers.
The recommendations include:
* Retailers and CPG companies need to communicate meal solutions to the Hispanic family in a way that interests both mother and child. Meals must be engaging and entertaining.
* Leveraging key Hispanic categories as gateway categories to larger shopping baskets* Invest in digital strategies customized for the U.S. Hispanic shopper.
* Have highly tailored in-store marketing strategies based on the unique demographics of each local market.
For the full report: The Hispanic The Why? Behind The Buy.