Hispanic Food Shoppers in the U.S.

Jun 30, 2014
119 Pages - Pub ID: LA5279402
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Hispanic Food Shoppers in the U.S.

Food retailers have long known that the U.S. Hispanic population represents an enormous opportunity. And also, Packaged Facts has found, a challenging opportunity.

First, the upside: over the past decade, spending on food in grocery stores by Hispanics has grown more than 80%, more than double the average growth registered by consumers overall. And as the Hispanic population has grown and Hispanic consumers are moving into areas not traditionally known for a large Latino presence, food retailers across the country can tap into this burgeoning market. This has ceased to be an opportunity restricted to places such as south Florida, Los Angeles, New York City and Chicago.

Now the challenge: the Hispanic population is not a monolith. Spanish language commonality aside, food preferences, idioms and shopping habits can vary depending on the country of origin. In Los Angeles, for example, stocking the shelves for the “Hispanic” food shopper means understanding the preferences and traditions of shoppers who are mainly Mexicans but also include a substantial population of Salvadorans and Guatemalans. In Miami food stores need to satisfy the expectations of Cubans, Colombians, Venezuelans, Hondurans and Nicaraguans. In New York they need to cater to Puerto Ricans and Dominicans along with shoppers from a wide variety of other countries in Central and South America.

Hispanic Food Shoppers in the U.S. offers critical insights into what food marketers and grocers can do to attract and retain the loyalty of Hispanic food shoppers.

Scope of the Report

Hispanic food shoppers are defined as Hispanic respondents to Simmons National Consumer Study (NCS) who report that they shopped at any supermarket or food store within the past four weeks. Hispanic food shoppers number 31.6 million and represent 88% of the total population of Hispanic adults.

The report uses the terms “Hispanic” and “Latino” interchangeably. According to a 2012 report by Washington, D.C.-based Pew Hispanic Research Center (“When Labels Don’t Fit: Hispanics and Their Views of Identity”) 51% of those self-identifying as “Hispanic” or “Latino” have no preference for either term. Those expressing a preference choose Hispanic over Latino by 33% to 14%.

The size of the market is defined as expenditures by Hispanic consumer units on food at grocery and other food stores, or food at home, as measured by the Consumer Expenditures Survey of the U.S. Bureau of Labor Statistics (BLS). As defined by BLS, a consumer unit is functionally equivalent to the household category of the Census Bureau. According to BLS, a consumer unit comprises either: (1) all members of a particular household who are related by blood, marriage, adoption, or other legal arrangements; (2) a person living alone or sharing a household with others or living as a roomer in a private home or lodging house or in permanent living quarters in a hotel or motel, but who is financially independent; or (3) two or more persons living together who use their income to make joint expenditure decisions. Financial independence is determined by the three major expense categories: Housing, food, and other living expenses. To be considered financially independent, at least two of the three major expense categories have to be provided entirely, or in part, by the respondent.

Methodology

The consumer data in this report come from several sources. These include Packaged Facts National Online Consumer Surveys conducted in January/February 2014 and April/May 2014, which reflect a panel of 2,000 U.S. adults (age 18+) that is balanced to the national population on the primary demographic measures of gender, age bracket, race/ethnicity, geographic region, marital status, presence or absence of children in the household and household income.

Another source is Simmons NCS for Fall 2013 from Experian Marketing Services, which was fielded from November 2012 through November 2013. (The report uses the Fall 2004 NCS in the case of 10-year-trend tables and figures.) On an ongoing basis, Experian Marketing Services conducts booklet-based surveys of a large and random sample of consumers (approximately 25,000 for each 12-month survey compilation) who in aggregate represent a statistically accurate cross-section of the U.S. population. The report also includes data from Simmons National Hispanic Consumer Study (NHCS) for Winter 2014, which was fielded from January 2013 through March 2014. Simmons NHCS includes an additional set of questions specifically geared toward Hispanic consumers.

A number of other surveys are cited in the report including data from reports published by Pew Hispanic Research Center, The MSL Group/The Hartman Group, AMG Advisors and McKinsey & Company. The report is also based upon data collected from a wide range of industry sources, including company websites, trade publications, business newspapers and magazines, consumer blogs and releases from public companies.
Chapter 1: Executive Summary
Scope of the Report
Methodology
Market Overview
Insights and Opportunities
English Language Gains Ground, Spanish Language Still Important
Many Hispanic Food Shoppers Don’t Relate to Spanish-Language Ads
Marketers Face Significant Differences across National Groups
Diversity Affects Regional Markets
In-Store Experience Key to Success
Supermarkets Face Stiff Competition for Hispanic Food Dollars
Successful Grocers Respond to Diversity Among Hispanics
… and to Pan-Hispanic Commonalities
Food in Hispanic Households
Family Meals of Paramount Importance to Latinos
Lunch Remains a Key Meal for Many Latinos
Hispanics Spend More Time Preparing Meals
Kitchen Is Centerpiece of Latino Home Life
Cooking Is a Family Affair
Hispanic Style Meal Assembly
At-Home Food Consumption Patterns
Overview of the Hispanic Food Shopper
Youth Prevails
30% Have Household Income of $75K or More
Hispanics Shop for Large Households
Profile of Food Shoppers Varies Across Different Regions
Neighborhood Grocers and Natural Channels Favored by Hispanics
Independent Channel Captures $18 Billion in Grocery Sales from Hispanics
Convenience Stores Attract Latino Food Shoppers
Hispanics Prefer Community-Minded Food Stores
Latina Moms Are More Positive Toward Food Shopping
Simpler Shopping Lists Mean More Buying Decisions Made in the Store
Hispanic Food Shoppers in the Store
Latinos Prefer National Brands, but Store Brands Still a Factor
Hispanics Concerns about Source and Safety of Meat and Poultry
Latinos Spend More on All Types of Meat, Poultry and Seafood
Hispanic Food Shoppers Say No to Hamburger Patties, Yes to Steak
Hispanic Dairy Product Consumption
Bilingual/English Dominant Hispanics Go for Store-Made Meals
Deli Meats Popular with Latinos
Snacking More Prevalent among Bilingual/English Dominant Latinos
Beverages Take Up Greater Share of Hispanic Shopping Carts
Marketing and Merchandising Strategies
Gaps in Hispanic Food Shopping Data Raise Obstacles
Retailers Benefit by Offering Variety of Foods by Country of Origin
Marketing and Promotions Should Acknowledge Shared
Decision-Making
Shopping Cart Ads Get Attention of Latino Shoppers
Smartphones Ubiquitous
Chapter 2: Insights and Opportunities
Responding to a Changing Cultural Context
English Language Gains Ground
Spanish Language Use Prevails
Table 2-1 Percent of Hispanic Food Shoppers Agreeing “I believe it is important to teach Spanish to Hispanic children as a way to help preserve Hispanic culture” by Language Use
Connection with Hispanic Heritage Does Not Require Speaking Spanish
Table 2-2 Relationship between Language Use and Ethnic Identification with Original Culture for Hispanic Food Shoppers
Dealing with Change and Diversity
Many Hispanic Food Shoppers Don’t Relate to Spanish-Language Ads
Table 2-3 Importance of Spanish-Language Marketing Communications to Hispanic Food Shoppers
Table 2-4 Attitudes of Hispanic Food Shoppers toward Spanish-Language Media and Advertising by Language Use and Ethnic
Identification with Original Culture
Marketers Face Significant Differences Across National Groups
Table 2-5 Attitudes of Hispanic Food Shoppers toward Spanish- Language Marketing Communications by National Heritage
Diversity Affects Regional Markets
Table 2-6 Attitudes of Hispanic Food Shoppers toward Spanish- Language
Marketing Communications by Major Metropolitan Area
Leveraging Opportunities
Hispanics Spend More in Grocery Stores
Figure 2-1 Amount Spent on Food at Home and Away from Home, Hispanic vs. Non-Hispanic Consumer Units, 2012
In-Store Experience Key to Success
Supermarkets Face Stiff Competition for Hispanic Food Dollars
Successful Grocers Acknowledge Hispanic Diversity
Table 2-7 Selected Products More and Less Likely to Be Used by
Hispanic Food Shoppers by National Heritage
Pan-Hispanic Commonalities
Table 2-8 Selected Products Least Likely to Be Used by Hispanic
Food Shoppers Regardless of National Heritage
Spending Patterns Reveal Opportunities
Chapter 3: Market Trends
Market Driver: Hispanic Population Trends
Hispanic Population Remains Highly Concentrated
Table 3-1 States with Largest Hispanic Populations, 2012 (in thousands) .. 32
Hispanic Diaspora Continues
Table 3-2 States Ranked by Rate of Growth in Hispanic Population, 2010-2012 (in thousands)
Market Driver: National Origins of Latino Food Shoppers
Mexicans at 64% of Latino Population
Table 3-3 Hispanic Population by Country of Origin, 2012
More Diversity Beyond the West and Southwest
Table 3-4 States with Largest Hispanic Populations Ranked by
Percent Mexican Population, 2012 (in thousands)
Table 3-5 Hispanic Population in California, Florida, New York and New Jersey by Country of Origin, 2012 (in thousands)
Market Driver: Acculturation Trends
U.S.-Born Latinos Come to the Fore
Table 3-6 Nativity of Hispanics Five Years Old and Over, 2000 vs. 2012 (in thousands)
Table 3-7 Growth in Number of U.S.- and Foreign-Born Hispanics Five Years Old and Over, 2000 vs. 2012 (in thousands)
Spanish Language Still Dominant but English Picks Up Ground
Table 3-8 Percent of Hispanics Five Years Old and Over Speaking
Spanish at Home, 2012 (in thousands)
Table 3-9 English-Language Ability of Hispanics Five Years Old and Over, 2000 vs. 2012 (in thousands)
Table 3-10 Percent Growth in Hispanics Five Years Old and Over by Language Use, 2000 vs. 2012
Recent Market Trends
Hispanics Spend $64 Billion on Food in Grocery Stores
Hispanic Food Shoppers Trending to Packaged Foods
Table 3-13 Hispanic Food Expenditures at Grocery and Other Food Stores by Percent Allocated to Each Food Category, 2002 vs. 2012
Table 3-14 Aggregate Expenditures at Grocery and Other Food Stores by Hispanic Consumer Units Ranked by Percent Growth, 2002 vs. 2012
Projected Market Growth
Hispanic Base Will Continue to Grow at Above-Average Rate
Improved Merchandising Will Spur Growth
Hispanic Food Shoppers Exude Confidence
Table 3-16 Consumer Confidence, Hispanic vs. All Food Shoppers
Hispanic Food Shoppers Still Face Constraints
Figure 3-1 Percent Agreeing “I Have Cut Back on Grocery Spending Because of the Economy,” Hispanic vs. All Consumers
Hispanic Spending on Food in Grocery Stores to Reach $86 Billion in 2018
Chapter 4: Food in Hispanic Households
The Importance of Meals
Family Meals of Paramount Importance to Latinos
Lunch Remains a Key Meal for Many Latinos
Table 4-1 Perceived Importance of Meals, Hispanic Food Shoppers by Degree of Identification with Original Culture and Language Use vs. All Food Shoppers
Hispanics Spend More Time Preparing Meals
Table 4-2 Amount of Time Spent Cooking Meals at Home Weekdays and Weekends, Hispanic vs. All Consumers
Snacking Less Important
Table 4-3 Snacking Habits, Hispanic Food Shoppers by Degree of Identification with Original Culture and Language Use vs. All Food Shoppers
Cooking Styles
Kitchen Is Centerpiece of Latino Home Life
Figure 4-1 Percent Agreeing “The Kitchen Is the Most Important Room in My Home,” Hispanic Food Shoppers by Degree of Identification with Original Culture vs. All Food Shoppers
Table 4-4 Perceived Size of Kitchen, Hispanic vs. All Consumers
Food Plays Central Role in Latino Lifestyle
Table 4-5 Attitudes toward Cooking, Hispanic vs. All Consumers
Cooking Is a Family Affair
Figure 4-2 Percent with Children in Household Regularly Involved in Cooking, Hispanics vs. All Consumers
Recipes Less Important to Spanish Dominant Cooks
Table 4-6 Use of Recipes, Hispanic Food Shoppers by Degree of Identification with Original Culture and Language Use vs. All Food Shoppers
Hispanic Cooks Assemble Meals Their Own Way
Spicy Food Gets Short Shrift
Table 4-7 Attitudes toward Spicy Foods, Hispanic Food Shoppers by Degree of Identification with Original Culture and Language
Use vs. All Food Shoppers
Impact of Tradition on Diet
Tradition Still Drives Many Food Choices
At-Home Food Consumption Patterns Differ
Table 4-8 Average Number of Grams Consumed at Home Per Capita Per Day by Category of Commodity, Hispanic vs. All U.S. Consumers, 2012
Importance of Healthy Eating
Hispanic Food Shoppers Have Health Concerns on Mind
Table 4-9 Attitudes toward Buying Foods Addressing Health Conditions and Concerns, Hispanic vs. All Consumers
Natural and Organic Foods Appeal
Table 4-10 Attitudes toward Natural and Organic Foods, Hispanic vs. All Consumers
Whole Grain and High Fiber Popular
Table 4-11 Percent of Hispanic Food Shoppers Who Especially Seek Out and Buy Foods with Certain Healthy Characteristics
Chapter 5: Overview of the Hispanic Food Shopper
Demographic Profile of Hispanic Food Shoppers
Youth Prevails
Table 5-1 Hispanic vs. All Food Shoppers by Age Group, 2014
60% Live in Southwest and Pacific Regions
Table 5-2 Region and Place of Residence, Hispanic vs. All Food Shoppers, 2014
30% Have Household Income of $75K or More
Table 5-3 Educational Attainment, Employment Status and Household Income, Hispanic vs. All Food Shoppers, 2014
Hispanics Shop for Large Households
Table 5-4 Households by Size and Presence of Children, Hispanic vs. All Food Shoppers, 2014
Profile of Food Shoppers Varies Across Regions
Table 5-5 Demographic Highlights of Hispanic Food Shoppers by Selected Geographic Area
Where Hispanics Shop for Food
Neighborhood Grocers and Natural Channels Favored by Hispanics
Table 5-6 Where Hispanic and Non-Hispanic Food Shoppers Shopped in Last Three Months, 2014
Independent Channel Captures $18 Billion in Grocery Sales from
Hispanics
Convenience Stores Attract Latino Food Shoppers
Hispanics Like Community-Minded Food Stores
Figure 5-1 Percent Agreeing “Participation by Food Stores in Charitable and Community Causes and Events Plays a Significant Role in Where I Buy Groceries,” Hispanic vs. All Food Shoppers, 2014
Food Shopping Patterns
Latina Moms Are More Positive Toward Food Shopping
Figure 5-2 Percent of Food Shoppers Agreeing “Shopping for Groceries Is a Bore,” Hispanic vs. Non-Hispanic Women with Children
Hispanics Spend More in Grocery Stores
Table 5-7 Hispanic Food Shoppers: Amount Spent per Week Grocery Shopping
43% of Hispanics Are Frequent Food Shoppers
Table 5-8 Frequency of Grocery Shopping, Hispanic vs. All Food Shoppers
Simpler Shopping Lists Mean More Buying Decisions Made in the Store
Chapter 6: Hispanic Food Shoppers in the Store
Hispanic Food Shoppers and Brand Names
Latinos Prefer National Brands, but Store Brands Still a Factor
Table 6-1 Attitudes toward Store Brands, Hispanic vs. All Consumers
National Brand Preferences Analyzed
Table 6-2 Use of Store Brands by Type of Product, Hispanic vs. All Food Shoppers (% of those in households using the product)
In the Meat Department
Hispanics Concerned about Source and Safety of Meat and Poultry
Table 6-3 Concerns about Source and Safety of Meat and Poultry, Hispanic vs. All Food Shoppers
Seasoned/Further Prepared Meats and Poultry Favored
Figure 6-1 Percent Agreeing “I Am Buying More Seasoned/Further Prepared Raw Meats & Poultry These Days,” Hispanic vs. All Food Shoppers
Latinos Spend More on All Types of Meat, Poultry and Seafood
Table 6-4 Average Annual Expenditures by Type of Meat, Poultry and Seafood, Hispanic vs. All Consumer Units, 2012
Figure 6-2 Average Annual Expenditures by Hispanic Consumer Units on Meat, Poultry and Seafood by Category, 2012
Hispanic Food Shoppers Say No to Hamburger Patties, Yes to Steak
Table 6-5 Types of Meat/Fish/Poultry Used in Last 7 Days, Hispanic vs. All Food Shoppers (percent of those using any meat/fish/poultry in last 7 days)
Specialty Meats Appeal to Spanish Dominant Food Shoppers
Table 6-6 Types of Meat Most Preferred by Hispanic Food Shoppers by Degree of Identification with Original Culture and Language Use
At the Dairy Case
Hispanic Dairy Product Consumption Varies
Figure 6-3 Percent of Average Daily Consumption of Dairy Products Allocated to Each Type of Product, Hispanic vs. All Consumers
Milk Marketers Depend on Hispanics
Table 6-7 Consumption of Milk by Hispanic and Non-Hispanic Food Shoppers' Households, 2004 vs. 2013 (in thousands)
Table 6-8 Growth in Consumption of Milk by Hispanic and Non-Hispanic Food Shoppers' Households, 2004 vs. 2013
Hispanic Food Shoppers Generate Significant Sales at Dairy Case
Table 6-9 Use of High Volumes of Dairy Products by Households of Hispanic Food Shoppers by Type of Product
Hispanic Food Shoppers at the Deli
Bilingual/English Dominant Hispanics Go for Store-Made Meals
Figure 6-4 Percent Agreeing ‘I Often Eat Store-Made, Pre-Cooked Meals,” Hispanic vs. All Food Shoppers
Deli Meats Work for Latinos
Table 6-10 Attitudes toward Buying Meats in the Deli Department, Hispanic vs. All Food Shoppers
In the Produce Department
Hispanics Spend More on Fresh Fruits and Vegetables
Table 6-11 Average Annual Expenditures for Fresh and Processed Fruits and Vegetables, Hispanic vs. All Consumer Units, 2012
Citrus Accounts for Half of Fruits Consumed
Figure 6-5 Percent of Average Daily Consumption of Fruit and Vegetables Allocated to Each Type of Product by Hispanics
Hispanics and Snacks
Snacking More Prevalent Among Bilingual/English Dominant Latinos
Table 6-12 Attitudes toward Snacking, Hispanic Food Shoppers by Degree of Identification with Original Culture and Language Use
Healthy Snacks Favored
Table 6-13 Favorite Snacks, Hispanic vs. All Consumers
Corn/Tortilla Chips Most Popular
Table 6-14 Use of High Volumes of Snacks by Households of Hispanic Food Shoppers by Type of Product
Hispanic Food Shoppers and Beverages
Beverages Take Up Greater Share of Hispanic Shopping Carts
Table 6-15 Changes in Expenditures for Nonalcoholic Beverages by Hispanic Consumer Units, 2002 vs. 2012
Acculturation Affects Beverage Choices
Table 6-16 Consumption of Relatively Large Quantities of Nonalcoholic Beverages, Hispanic Food Shoppers by Degree of Identification with Original Culture and Language Use
Chapter 7 Marketing and Merchandising Strategies
Overview
Gaps in Hispanic Food Shopping Data Raise Obstacles
Retailers Benefit by Offering Variety of Foods by Country of Origin
Merchandisers Need to Acknowledge “Shopping With Your Senses”
Grocers Learn How to Target Hispanic Food Shoppers
Marketing and Promotions Should Acknowledge Shared Decision-Making
Table 7-1 Attitudes toward Influence of Children on Shopping Behavior of Food Shoppers with Children, Hispanic vs. Non-Hispanic
Table 7-2 Influence on Food Purchasing Decisions of Food Shoppers by Presence of Children, Hispanic vs. Non-Hispanic
Latinos Less Likely to Use Cents-Off Coupons in Grocery Stores
Table 7-3 Use of Cents-Off Coupons, Hispanic vs. All Food Shoppers
Shopping Cart Ads Get Attention of Latino Shoppers
Table 7-4 Receptivity to In-Store Promotional Activities, Hispanic Food Shoppers by Degree of Identification with Original Culture and Language Use vs. All Food Shoppers
Smartphones Ubiquitous
Table 7-5 Use of Digital Media, Hispanic Food Shoppers by Degree of Identification with Original Culture and Language Use vs. All Food Shoppers
Younger Latinos Heavily Involved in Social Media
Table 7-6 Attitudes toward Social Media, Hispanic Food Shoppers by Age Group vs. All Food Shoppers
Marketing Approaches
Kellogg’s Launches Digital Platform to Reach Hispanic Families
Bumble Bee Partners with Celebrity Latina Chef
Campbell’s Targets Hispanic Market
Kraft Mac & Cheese Looks to Hispanic Families
Merchandising Approaches
Nestlé USA and Superior Grocers “Set the Table” for Healthier Meals
Northgate Expands Viva La Salud Program
Unified Grocers Targets Latino Community

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