The U.S. Market for Hispanic Food: Volume 1 in the series

Attention: There is an updated edition available for this report.
 
   Single User - $1,687
   Hard Copy Mail Delivery - $1,687
   Corporate License - $3,375
   Online Download plus 1 Hard Copy - $1,912


Loading...
Published Mar 1, 2003 | 218 Pages | Pub ID: LA797658

Special Offer. Now 25% off the original price of $2250.


The $3 billion market for shelf-stable, refrigerated, and frozen Mexican foods includes consumers of Hispanic origin—but also extends far beyond them. The growing Hispanic population is exerting a profound cultural effect upon the U.S. as a whole, and consumers from many regions and ethnic backgrounds have developed a craving for "el sabor Latino." As their palates become fluent in Spanish, consumers are moving beyond Mexican to explore a host of Hispanic foods and flavors.

This new report looks at every segment of this dynamic market, examining trends for growth and projecting sales of Hispanic foods through 2008. It analyzes consumer demographics and their current and projected impact on sales of Hispanic foods. It provides up-to-date competitive profiles of marketers of both mainstream and authentic Hispanic products - including a look at smaller, up-and-coming companies - and discusses the influence of the restaurant and foodservice business as a driver of retail trends. The report also spotlights new products and current advertising trends, and offers readers trends and marketing opportunities within this burgeoning industry.

Report Methodology
The information in The U.S. Market for Hispanic Foods is based on both primary and secondary research. Primary research involved on-site examination of the retail milieu, interviews with marketing, public relations and industry analysts within the Hispanic food market and consultants to the industry. Secondary research entailed data-gathering from relevant trade, business, and government sources, including company literature. Packaged Facts has derived supermarket sales figures from Information Resources, Inc. (IRI) InfoScan sales-tracking data. Figures provided on national consumer advertising expenditures are based primarily on data (copyright 2001) compiled by CMR/TNS Media Intelligence U.S., the leading provider of strategic advertising and marketing communications intelligence. The analysis of consumer demographics derives from Simmons Market Research Bureau survey data for spring 2002. New product information is gathered via literature research, personal interviews and data compiled by ProductScan, a service of Marketing Intelligence Service Ltd.

Why We Published This Report
The growing numbers - and influence - of the Hispanic population in the United States should be no secret to marketers of most any product; food products are certainly no exception. And it’s not as if Hispanic (read Mexican) food products are new to the American consumer: tacos, salsa, burritos and nachos are staples of American dining-out and, increasingly, in-home eating habits. But what’s changed is the “Latinization” trend of what are considered traditional "American" foods - dulce de leche ice cream is the oft-cited example, and there are plenty others.

Clearly, the American consumer is “hot” for the cuisine of Latin America, Mexican of course but with an expanding eye on other Central American nations, as well as opening the palate to the foods of South America and the Caribbean. And the food industry is responding with gusto. Major mainstream marketers, such as Kraft and Nestle, have identified expansion in the Hispanic market as a significant component of their growth strategies. Investors are looking to smaller, niche Latino marketers as today’s growth alternative to dot.coms and telecom companies.

We’ve looked at the data, talked to the experts and analyzed the information, and concluded that that the time was right for a new report on this growing industry.

What You’ll Get in this Report
Unlike other market research reports, the focus is solely on current and emerging Hispanic food trends. The report is arranged in the following segments:

  • The Market (including market size and composition, and projected market growth)
  • The Marketers (including discussions of specific marketer brand and market shares)
  • Competitive Profiles (of the mainstream marketers, Hispanic-food specialists and up-and-coming niche players, and analyses of the products they market)
  • Retail Strategies
  • The Foodservice Factor (discussing food service as a culinary trend leader)
  • The Consumer (who’s buying what, and where)
  • The Products
  • Trends and Opportunities
  • Figures on Advertising and Promotion

Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs

How You Will Benefit from this Report
If your company is already competing in the Hispanic food market, or is considering making the leap, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for Hispanic foods, as well as projected sales and trends through 2008. Contributing to that understanding will be a complete analysis of sales data from Information Resources Inc. and other published and trade sources, a detailed discussion of the consumer for Hispanic foods based on Simmons data.

This report will help:

  • Marketing Managers identify market opportunities and develop targeted promotion plans for Hispanic foods.
  • Research and development professionals stay on top of competitor initiatives and explore demand for products in the Hispanic foods market.
  • Advertising agencies working with clients in the food industry understand the Hispanic food buyer - be they of Latin origin or not - to develop messages and images that compel consumers to purchase Hispanic food products.
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.

Volumes in the series are as follows:

The U.S. Market for Hispanic Foods: Volume 1 in the series, The U.S. Market for Ethnic Foods
The U.S. Market for Asian Foods: Volume 2 in the series, The U.S. Market for Ethnic Foods
The U.S. Market for Emerging Ethnic Foods: Volume 3 in the series, The U.S. Market for Ethnic Foods
The U.S. Market for Ethnic Foods: Volumes 1-3

Chapter 1 Executive Summary
  • Scope of This Report
  • Report Methodology

    The Market
    • Market Definition
    • Hispanic Population Growth
    • Hispanic Purchasing Power
    • Buying Power of Hispanic Consumers
    • Regional Distribution of U.S. Hispanic Population
    • The Broader Market for Mexican and Hispanic Foods
    • Figure 1-1: U.S. Total Retail Sales of Mexican Foods (in millions), 1998-2002
    • U.S. Retail Sales of Mexican Foods By Category, 1998-2002
    • Mexican Sauces
    • Frozen Foods
    • Refrigerated Tortillas
    • Juices
    • Tortilla Chips
    • Consumer Patterns
    • Household Usage Rates by Racial/Ethnic Origin
    • Consumption Trends
    • Use of Mexican Foods by Age Group
    • Projected U.S. Retail Sales of Hispanic Foods, 2003-2007

    Competitive Situation

    • Hispanic Food as an Investment Opportunity
    • Major Mainstream Players
    • Leading Specialists
    • From Mexico to Mainstream
    • Frozen Food Specialists
    • Private-Label Power
    • Overall Category Shares of Mexican-Food Brands
    • Figure 1-2: Market Share (as Dollar Share) in Hard/Soft Tortillas/Taco Kits, Based on U.S. Sales in 2002
    • Subcategory Shares
    • Hard/Soft Tortilla/Taco Kits
    • Mexican Food Items
    • Refried Beans
    • Mexican Sauces
    • Growth Beyond Mexican

    New Products And Product Trends

    • Table 1-1: 5-Year SKU Counts of New Mexican/Hispanic Food Product Introductions, 1998-2002
    • Flavorings Lead, Products Follow
    • Trends Influencing New-Product Creations
    • Adventure and Intensity
    • Desire for Greater Authenticity
    • Beyond Mexico
    • Portability
    • Convenience: Frozen Heats Up
    • Portability+Convenience=Bowls
    • Meals for One

    Retail Strategies

    • Opportunities and Challenges
    • Frozen Mexican Drives Sales in Supermarket Segment
    • Consolidation May Affect Distribution
    • The C-Store Connection: Young Males, Frozen Burritos
    • Courting Ethnic Consumers
    • Retailer-Driven Strategies
    • Customized Formats
    • Ethnic Store-Within-A-Store
    • The Online Channel

    Foodservice Trends

    • Mexican on the Mainstream Menu
    • The Influence of Chefs
    • High-End Trends
    • The Fast-Casual Segment
    • “Fresh Mexican Grills”
    • Latin American Competitors Turn up the Heat
    • Table 1-2: Fast-Casual Mexican Restaurants, The Top 3, By the Dollars, Revenue and Percentage, for 2001
    • QSR Tries to Keep Pace

    The Consumer

    • Overall Usage
    • Usage Skews West
    • Usage of Specific Categories by Region
    • Bigger Household, Bigger Mexican Appetite
    • Women Have Slight Edge
    • Usage Increases with Household Income
    • Table 1-3: Usage of Mexican Food by Household Income
    • Education Level Also Equates to Usage

Chapter 2 The Market

    The Market
    • Latino Jell-O
    • An Inaugural All-Latin Food Show
    • What are “Hispanic Foods?”
    • Scope of This Report
    • A note about nomenclature
    • A Note about IRI Data
    • A Note about Simmons Market Research Bureau
    • A Note about Advertising Data

    The Market for Hispanic Foods: Who’s Buying, What and Where

    • The Hispanic Market
    • Population Growth
    • Table 2-1: U.S. Population Break-down, By Race, As of July 1, 2001
    • Purchasing Power
    • Buying Patterns
    • National Origins of U.S. Hispanic Population
    • Figure 2-1: Nationals Origins of U.S. Hispanic Population
    • Regional Distribution of U.S. Hispanic Population
    • Figure 2-2: Regional Distribution of U.S. Hispanic Population
    • The Broader Market for Mexican and Hispanic Foods
    • Latin Influence on Mainstream Consumers
    • Consumers Exhibit Widespread Interest in Ethnic Foods
    • Hispanic-Americans Have Highest Household Usage Rate for Mexican Products
    • Figure 2-3: Percentage of Households Using Mexican Foods/Ingredients, By Racial/Ethnic Origin
    • Salsa Is No. 1 Mexican Food Product Cited
    • Figure 2-4: Household Use of Mexican Food Products by Type
    • Gen-Xers, Younger Boomers Are Most Frequent Mexican Food Users
    • Go West, Mexicans Food Markets
    • Mexican Food Should Have Age-Spectrum Appeal

    The Market for Hispanic Foods: Past and Present

    • Retail Hispanic Foods Market Reaches $2.7 Billion (Tortilla/Corn Chips Excluded)
    • Retail Sales of IRI Mexican Foods Categories Exceeds $1 Billion
    • Figure 2-5: U.S. Total Retail Sales of Mexican Foods (in millions), 1998-2002
    • Mexican Sauces Outpace Other Mexican Food Categories
    • Growth in Terms of Sales
    • Figure 2-6: CAGR of Mexican Foods and Sauces, by Category, 1998-2002
    • Figure 2-7: Growth of Mexican Foods and Sauces (in millions) by Category, 1998-2002
    • Figure 2-8: Comparison of 2002 Total Retail Sales of Mexican Foods and Sauces by Category
    • Table 2-2: Sales (in millions) of Mexican Foods Subcategories and Mexican Sauces, 2002 vs. 2001
    • Frozen Mexican Sales Heat-Up
    • Tortilla/Corn Chips
    • Refrigerated Tortillas See Solid Growth

    Retail Outlets

    • Food Stores Dominate Mexican Food Sales
    • Role of Internet

    Projected Market Growth

    • Hispanic Foods to Exceed $3.4 Billion by 2008
    • Market Growth Projections for Hispanic Food Segments
    • Mexican Foods: $1.31 billion
    • Figure 2-9: Projected U.S. Retail Sales of Mexican Foods, 2003-2008 (in millions)
    • Mexican Sauces: Mexican Sauces: $1.11 billion
    • Table 2-3: Projected U.S. Retail Sales of Mexican Sauces, 2003-2008 (in millions)
    • Refrigerated Tortillas: $256.8 million
    • Table 2-4: Projected U.S. Retail Sales Refrigerated Tortillas, 2003-2008 (in millions)
    • Frozen Foods: $659.1 million
    • Table 2-5: Projected U.S. Retail Sales of Frozen Mexican Foods, 2003-2008 (in millions)
    • Tortilla/Corn Chip Market: $7.7 billlion
    • Table 2-6: Projected U.S. Retail Sales of Tortilla/Corn Chips, 2003-2008 (in millions)

Chapter 3 The Competitive Situation

  • Hispanic Food as an Investment Opportunity
  • Major Mainstream Players
  • Leading Specialists
  • Frozen Food Specialists
  • From Mexico to Mainstream
  • Private-Label Power
  • Up-and-Comers

Marketer Shares

  • Overall Category Shares of Mexican-Food Brands
  • Figure 3-1: Mexican-Food Brands Used Most Often, 2002
  • Subcategory Shares, With Extra Sauce
  • Hard/Soft Tortillas/Taco Kits
  • Figure 3-2: Market Share (as Dollar Share) in Hard/Soft Tortilla/Taco Kits, Based on U.S. Sales in 2002
  • Table 3-1: Dollar Share of Hard/Soft Tortillas/Taco Kits Market 2002 vs. 2001
  • Table 3-2: Top Hard/Soft Tortillas/Taco Kits Brands, 2002 Sales
  • Mexican Food Items
  • Table 3-3: Top Marketers of Mexican Food Items, 2002 Sales
  • Refried Beans
  • Table 3-4: Top Marketers of Refried Beans, 2002 Sales
  • Sauciest Marketers, By Brand Sales
  • Table 3-5: Top U.S. Marketers of All Mexican Sauces, By Total Sales (in Millions) 2002 vs. 2001
  • Table 3-6: Top Marketers of Salsa, 2002 Sales
  • Table 3-7: Top Marketers of Taco Sauce, 2002 Sales
  • Table 3-8: Top Marketers of Picante Sauce, 2002 Sales
  • Table 3-9: Top Marketers of Other Mexican Sauces, 2002 Sales
  • Frozen Dinners and Hand-Held Entrees
  • Bottled Juices and Nectars
  • Refrigerated Tortillas
  • Table 3-10: Top Marketers of Refrigerated Tortillas, 2002 Sales

Profiting from Growth Beyond Mexican

Competitive Profiles: The Mainstream Players

  • Nestle (Ortega)
  • Product Areas - Ortega
  • Competitive Advantage: Ortega is a Salsa Leader
  • Kraft Foods (Taco Bell)
  • Product Areas - Taco Bell
  • Competitive Advantage - Synergy Over Authenticity
  • But Is That Changing?
  • Bilingual Web Site for “Latina Moms”
  • PepsiCo (Frito Lay/Doritos)
  • Product Area: Doritos/Frito-Lay
  • Competitive Advantage: Chips, Chips, Chips
  • Table 3-11: Top Marketers of Tortilla/Tostada Chips. 2002 Sales
  • Saying “Si” to Sabritas
  • Salsa Leade
  • Pillsbury/General Mills (Old El Paso)
  • Product Areas: Old El Paso
  • Competitive Advantage: Convenience and Depth
  • Heinz (Delimex)
  • Heinz Acquires Delimex Foods
  • New Product Lines
  • Up and Down Sales Pattern
  • ConAgra (Rosarita, Fernando’s Foods)
  • Product Areas: Rosarita and Other Brands
  • Foodservice Through Fernando’s
  • Hormel (Chi-Chi’s)
  • Product Area: Chi-Chi’s
  • Product Area: “Authentic Products”
  • Campbell Soup (Pace)
  • Product Area: Pace
  • Competitive Advantage: Picante is Hot
  • A Smattering of Mexican/Hispanic Products
  • Cargill
  • Uncle Ben’s
  • Ice Cream Manufacturers
  • Candy Companies
  • What’s Next for Mainstream Marketers?

Competitive Profiles: Hispanic Market Specialists

  • Goya
  • Competitive Advantage: Authenticity and Depth
  • Product Areas: You Name It in Spanish, Goya Probably Has It
  • Grupo Bimbo
  • Competitive Advantage: Roots and New Branches
  • Iberia
  • La Fe
  • Mission (Gruma SA)
  • La Victoria/Embassa (Authentic Specialty Foods)
  • What’s Next for the Major Specialists?

Competitive Profiles: The Frozen/Refrigerated Food Speciaists

  • Table 3-12: Top 15 Marketers of Frozen Hand-Held Foods (Nonbreakfast), 2002 Sales
  • Ruiz Food Products
  • A Leader in Most Channels
  • Considerable “Cross-Over” Appeal
  • New Product Introductions
  • Snacking All the Way to the Bank
  • Don Miguel
  • Specialty Brands
  • Camino Real

Competitive Profiles: The Up-and-Comers

  • Urys
  • Jugos del Valle
  • Fresh Foods Concepts (Senor Felix)
  • Others to Watch
  • Excelline Foods
  • Juanita’s Foods

Chapter 4 New Products and Product Trends

  • Product Categories Used by Consumers Most Often
  • Figure 4-1: Household Use of Mexican Food Products, by Type
  • New-Product Introductions
  • Table 4-1: 5-Year SKU Counts of New Mexican/Hispanic Food Product Introductions, 1998-2002
  • Flavorings Lead, Products Follow
  • Table 4-2: A Sampling of New Mexican/Hispanic Product Introductions, 2001-2002
  • Frito-Lay Gives Snacks a Latin Twist
  • Spices and Seasonings Get Spicier

Trends Influencing New-Product Creation

  • Flavor Trends
  • Adventure and Intensity
  • Desire for Greater Authenticity
  • But No to Dulce de Leche M&Ms
  • Venturing Beyond Mexico
  • Lifestyle Trends
  • Portability
  • Convenience: Frozen Heats Up
  • And Convenience Expands Its Boundaries
  • Burritos Are Not Just for Dinner Anymore
  • Mexican Dinner Kits
  • Mini Mex-es Are Big Business
  • Portability+Convenience=Bowls
  • Meals for One

New Mexican/Hispanic Products

  • Table 4-3: Selected Mexican/Hispanic Products Introduced 2000-2002: Meals and Entrees
  • Table 4-4: Selected Mexican/Hispanic Products Introduced 2000-2002: Meat & Poultry
  • Table 4-5: Selected Mexican/Hispanic Products Introduced 2000-2002: Dairy/Dairy Substitute (excluding ice cream)
  • Table 4-6: Selected Mexican/Hispanic Products Introduced 2000-2002: Frozen Products
  • Table 4-7: Selected Mexican/Hispanic Products Introduced 2000-2002: Convenience Items
  • Table 4-8: Selected Mexican/Hispanic Products Introduced 2000-2002: Snacks
  • Table 4-9: Selected Mexican/Hispanic Products Introduced 2000-2002: Spices/Sauces (including Salsa)/Seasonings
  • Table 4-10: Selected Mexican/Hispanic Products Introduced 2000-2002: Sweets (including desserts/ice cream)
  • Table 4-11: Selected Mexican/Hispanic Products Introduced 2000-2002: Miscellaneous (including beverages)
  • Niche Categories
  • Table 4-12: Selected Mexican/Hispanic Products Introduced in Niche Categories, 2000-2002

Chapter 5 Retail Strategies

  • Mass and Supermarket Channels Dominate Sales
  • Growth Up in Mass and Supermarket, Down in Drug
  • Figure 5-1: Compound Annual Growth Rate of Mexican Food Sales by Channel, 1998-2002

Trends in Retail Sales

  • Frozen Mexican Drives Sales in Supermarket Segment
  • “Premium” Paves the Way to Increased Supermarket Sales
  • Consolidation May Affect Distribution
  • Investment May Also Bring Diversity
  • The C-Store Connection: Young Males, Frozen Burritos
  • Don Miguel Scores with the “Bomb”
  • Making Hot-to-Go a Priority
  • Mature, But Not Retired
  • The Online Channel
  • MexicanGrocer.com
  • Hard-to-Find Items Through MexGrocer.com
  • An Ethnic Food Panel

Opportunities and Challenges for Reaching the Ethnic Food Customer

  • Best Practices for Courting Ethnic Consumers
  • Figure 5-2: Hispanic Shoppers’ Top Criteria for Deciding Where to Shop
  • Sampling is Key

Retailer-Driving Strategies: Attracting Hispanic Shoppers (and Authentic Product Seekers)

  • Customized Formats
  • Carnival Food Stores (Minyard Food Stores)
  • Marsh Supermarkets
  • Albertson’s
  • Lowe’s Food Stores
  • Ethnic Store-Within-A-Store
  • Baking Up Profits from Hispanic Products
  • Neighborhood by Neighborhood
  • Wal-Mart
  • Kmart
  • Marketer-driven Strategies - The Goya Approach

Chapter 6 Foodservice Trends

  • Mexican - and Latino - on the Mainstream Menu
  • Table 6-1: Compound Annual Growth Rate of Quick Service Restaurants 1979 to 1999 (in percentage)
  • Mexican QSR Appeal
  • Table 6-2: Number of Ethnic Menu Items on Menus of Non-Ethnic Chain Restaurants, by Cuisine, First Half 2002
  • Moving Beyond Quesadillas
  • Ethnic Eating: Multiple Levels of Appeal
  • Table 6-3: Types of Appeal Attributed to Latin Ethnic Cuisines

Rick Bayless and The Influence of Chefs

  • Chefs on TV
  • High-End Latino Trends
  • Is Peru the Next Big ‘New’?
  • Back To Roots

Fast-Casual: Fresh, Real and Quick

  • Growth Greatly Outpaces Other Restaurant Sectors
  • A Desirable Demographic
  • “Fresh Mexican Grills”: The Top Three
  • Chipotle
  • The big burrito
  • Aggressive Expansion by McDonald’s
  • Advertising and Marketing Strategies
  • Baja Fresh
  • No, No, No
  • Wooed (and won over) by Wendy’s
  • Advertising and Marketing Strategies
  • Rubio’s
  • A New Look and Menu
  • Slowing Expansion
  • Advertising and Marketing Strategies
  • The Next Tier
  • Qdoba
  • La Salsa
  • Niche Players
  • Wahoo’s Fish Tacos
  • Desert Moon Café
  • Table 7-4: Fast-Casual Mexican Restaurants, By the Numbers
  • Table 7-5: Fast Casual Mexican Restaurants, The Top 3, By the Dollars

QSR: Taco Bell and Others

  • Taco Bell Tries to Keep Pace
  • Other Mexican QSR Players
  • Latin American Competitors Turn up the Heat

Foodservice Beyond Restaurants

  • A New Spanish Course on Campus
  • Popular Choice with School-Age Set
  • From Foodserservice to Freezer Case

Chapter 7 The Consumer

  • Nearly Two-Thirds of Households Use Mexican Food
  • West is Best for Mexican Food Consumption
  • Figure 7-1: Use of Mexican Food by Census Region
  • And What They Eat Depends on Where They :Live
  • Figure 7-2: Most-Used Mexican Product Categories By Census Region
  • Eating Preferences Reveal Regional Biases
  • Old El Paso Has Widest Scope of Regional Use
  • Latinos Biggest Users of Mexican Products, But Other Groups Show Strong Patterns
  • Table 7-1: Mexican Brands Most Often Used, By Census Region, By Percentage of Households
  • Figure 7-3: Percentage of Households Using Mexican Foods/Ingredients, By Racial/Ethnic Origin
  • Figure 7-4: Most-Used Mexican Product Categories By Racial/Ethnic Origin
  • Gen-Xers, Back-End Boomers Drive Mexican Food Sales
  • Figure 7-5: Percentage of Households Using Mexican Foods/Ingredients, By Age Group
  • Maturing Boomers to Drive Mexican Growth
  • Bigger Families, Bigger Mexican Appetites
  • Figure 7-6: Percentageof Households Using Mexican Foods/Ingredients, by Household Size
  • Figure 7-7: Percentage of Households Using Mexican Foods/Ingredients, By Ages of Children
  • Kids Take Mexican Choices for Granted
  • Women Have Slight Edge to Mexican Product Usage
  • Figure 7-8: Male vs. Female Usage of Mexican Food
  • Higher Income Translates to Higher Usage
  • Table 7-2: Usage of Mexican Food By Household Income
  • Usage Rises with Educational Attainment
  • Figure 7-9: Percentage of Households Using Mexican Foods/Ingredients, By Educational Level
  • General Attitudes Toward Ethnic Foods Consumption

Hispanic Buying Patterns

  • National Origins of U.S. Hispanic Population
  • Authentic vs. Adapted
  • Pleasing All of the People All of the Time

Chapter 8 Trends and Opportunities

  • More Movement Toward the Mainstream
  • Greater Acceptance by All Ages
  • New Fusions
  • Contenders for the Crown
  • Seeking Authenticity
  • Craving Convenience
  • Integration Into Mainstream Brands
  • Hispanic Marketers Branching Out
  • Playing Into Consumer Buying Patterns
  • Making It Portable, If Possible
  • Taking Easy Points of Entry
  • Diversifying with Caution
  • One from Column A, One from Column B

Appendix I: Addresses of Selected Marketers