Hispanic Food Shoppers in the U.S.

Published: June 30, 2014 - 119 Pages

Table of Contents

  • Executive Summary
    • Scope of the Report
    • Methodology
    • Market Overview
      • Table Food Expenditures by Hispanic Consumer Units at Grocery and Other Food Stores, 2007-2012 (in million $)
      • Table Projected Growth in Expenditures by Hispanic Consumer Units on Food in Grocery and Other Food Stores, 2013-2018 (in million $)
    • 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
  • Insights and Opportunities
    • Responding to a Changing Cultural Context
      • English Language Gains Ground
      • Spanish Language Use Prevails
        • Table 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 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 Importance of Spanish-Language Marketing Communications to Hispanic Food Shoppers
        • Table 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 Attitudes of Hispanic Food Shoppers toward Spanish-Language Marketing Communications by National Heritage
      • Diversity Affects Regional Markets
        • Table Attitudes of Hispanic Food Shoppers toward Spanish-Language Marketing Communications by Major Metropolitan Area
    • Leveraging Opportunities
      • Hispanics Spend More in Grocery Stores
      • In-Store Experience Key to Success
      • Supermarkets Face Stiff Competition for Hispanic Food Dollars
      • Successful Grocers Acknowledge Hispanic Diversity
        • Table Selected Products More and Less Likely to Be Used by Hispanic Food Shoppers by National Heritage
      • Pan-Hispanic Commonalities
        • Table Selected Products Least Likely to Be Used by Hispanic Food Shoppers Regardless of National Heritage
      • Spending Patterns Reveal Opportunities
  • Market Trends
    • Market Driver: Hispanic Population Trends
      • Hispanic Population Remains Highly Concentrated
        • Table States with Largest Hispanic Populations, 2012 (in thousands)
      • Hispanic Diaspora Continues
        • Table 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 Hispanic Population by Country of Origin, 2012
      • More Diversity Beyond the West and Southwest
        • Table States with Largest Hispanic Populations Ranked by Percent Mexican Population, 2012 (in thousands)
        • Table 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 Nativity of Hispanics Five Years Old and Over, 2000 vs. 2012 (in thousands)
        • Table 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 Percent of Hispanics Five Years Old and Over Speaking Spanish at Home, 2012 (in thousands)
        • Table English-Language Ability of Hispanics Five Years Old and Over, 2000 vs. 2012 (in thousands)
        • Table 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
        • Table Food Expenditures by Hispanic Consumer Units at Grocery and Other Food Stores, 2007-2012 (in million $)
        • Table Trends in Food Expenditures at Grocery and Other Food Stores by Hispanic and Other Consumer Units, 2002 vs. 2012
      • Hispanic Food Shoppers Trending to Packaged Foods
        • Table Hispanic Food Expenditures at Grocery and Other Food Stores by Percent Allocated to Each Food Category, 2002 vs. 2012
        • Table 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
        • Table Projected Population Growth 2013-2018, Hispanics vs. Non-Hispanics (in thousands)
      • Improved Merchandising Will Spur Growth
      • Hispanic Food Shoppers Exude Confidence
        • Table Consumer Confidence, Hispanic vs. All Food Shoppers
      • Hispanic Food Shoppers Still Face Constraints
        • Table Mean Household Income 2007-2012, Hispanic vs. All U.S. Households (in thousand $)
      • Hispanic Spending on Food in Grocery Stores to Reach $86 Billion in 2018
        • Table Projected Growth in Expenditures by Hispanic Consumer Units on Food in Grocery and Other Food Stores, 2013-2018 (in million $)
  • Food in Hispanic Households
    • The Importance of Meals
      • Family Meals of Paramount Importance to Latinos
      • Lunch Remains a Key Meal for Many Latinos
        • Table 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 Amount of Time Spent Cooking Meals at Home Weekdays and Weekends, Hispanic vs. All Consumers
      • Snacking Less Important
        • Table 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
        • Table Perceived Size of Kitchen, Hispanic vs. All Consumers
      • Food Plays Central Role in Latino Lifestyle
        • Table Attitudes toward Cooking, Hispanic vs. All Consumers
      • Cooking Is a Family Affair
      • Recipes Less Important to Spanish Dominant Cooks
        • Table 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 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 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 Attitudes toward Buying Foods Addressing Health Conditions and Concerns, Hispanic vs. All Consumers
      • Natural and Organic Foods Appeal
        • Table Attitudes toward Natural and Organic Foods, Hispanic vs. All Consumers
      • Whole Grain and High Fiber Popular
        • Table Percent of Hispanic Food Shoppers Who Especially Seek Out and Buy Foods with Certain Healthy Characteristics
  • Overview of the Hispanic Food Shopper
    • Demographic Profile of Hispanic Food Shoppers
      • Youth Prevails
        • Table Hispanic vs. All Food Shoppers by Age Group, 2014
      • 60% Live in Southwest and Pacific Regions
        • Table Region and Place of Residence, Hispanic vs. All Food Shoppers, 2014
      • 30% Have Household Income of $75K or More
        • Table Educational Attainment, Employment Status and Household Income, Hispanic vs. All Food Shoppers, 2014
      • Hispanics Shop for Large Households
        • Table Households by Size and Presence of Children, Hispanic vs. All Food Shoppers, 2014
      • Profile of Food Shoppers Varies Across Regions
        • Table Demographic Highlights of Hispanic Food Shoppers by Selected Geographic Area
    • Where Hispanics Shop for Food
      • Neighborhood Grocers and Natural Channels Favored by Hispanics
        • Table 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
    • Food Shopping Patterns
      • Latina Moms Are More Positive Toward Food Shopping
      • Hispanics Spend More in Grocery Stores
        • Table Hispanic Food Shoppers: Amount Spent per Week Grocery Shopping
      • 43% of Hispanics Are Frequent Food Shoppers
        • Table Frequency of Grocery Shopping, Hispanic vs. All Food Shoppers
      • Simpler Shopping Lists Mean More Buying Decisions Made in the Store
  • Hispanic Food Shoppers in the Store
    • Hispanic Food Shoppers and Brand Names
      • Latinos Prefer National Brands, but Store Brands Still a Factor
        • Table Attitudes toward Store Brands, Hispanic vs. All Consumers
      • National Brand Preferences Analyzed
        • Table 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 Concerns about Source and Safety of Meat and Poultry, Hispanic vs. All Food Shoppers
      • Seasoned/Further Prepared Meats and Poultry Favored
      • Latinos Spend More on All Types of Meat, Poultry and Seafood
        • Table Average Annual Expenditures by Type of Meat, Poultry and Seafood, Hispanic vs. All Consumer Units, 2012
      • Hispanic Food Shoppers Say No to Hamburger Patties, Yes to Steak
        • Table 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 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
      • Milk Marketers Depend on Hispanics
        • Table Consumption of Milk by Hispanic and Non-Hispanic Food Shoppers' Households, 2004 vs. 2013 (in thousands)
        • Table 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 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
      • Deli Meats Work for Latinos
        • Table 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 Average Annual Expenditures for Fresh and Processed Fruits and Vegetables, Hispanic vs. All Consumer Units, 2012
      • Citrus Accounts for Half of Fruits Consumed
    • Hispanics and Snacks
      • Snacking More Prevalent Among Bilingual/English Dominant Latinos
        • Table Attitudes toward Snacking, Hispanic Food Shoppers by Degree of Identification with Original Culture and Language Use
      • Healthy Snacks Favored
        • Table Favorite Snacks, Hispanic vs. All Consumers
      • Corn/Tortilla Chips Most Popular
        • Table 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 Changes in Expenditures for Nonalcoholic Beverages by Hispanic Consumer Units, 2002 vs. 2012
      • Acculturation Affects Beverage Choices
        • Table Consumption of Relatively Large Quantities of Nonalcoholic Beverages, Hispanic Food Shoppers by Degree of Identification with Original Culture and Language Use
  • 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 Attitudes toward Influence of Children on Shopping Behavior of Food Shoppers with Children, Hispanic vs. Non-Hispanic
        • Table 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 Use of Cents-Off Coupons, Hispanic vs. All Food Shoppers
      • Shopping Cart Ads Get Attention of Latino Shoppers
        • Table 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 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 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

Abstract

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, Hispanic food stores across the country can start succeeding in 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, opening a Hispanic food store requires understanding the preferences and traditions of shoppers who are mainly Mexicans but also include a substantial population of Salvadorans and Guatemalans. In Miami, Hispanic 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.

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