How Are Hispanic Consumers Shopping?

Hispanic consumers are fueling 16% of CPG growth, new data from Circana reveals.

On the heels of Hispanic Heritage Month that extended from Sept. 15 to Oct. 15, new research affirms that this demographic group is gaining market share and driving CPG growth. According to two new reports from Chicago-based Circana, Hispanics now comprise 20% of the U.S. population and more than 25% of Gen Z and Gen Alpha consumers identify as Hispanic.

Circana‘s data shows that Hispanic households deliver 16% of total growth. These households have outpaced non-Hispanics in both dollar and unit sales growth over the past year, despite over-indexing in incomes below $50,000.

As with all demographic groups based on ethnicity, there are subgroups. Circana's reports affirm that acculturated and unacculturated Hispanic consumers have some similar attitudes, but demonstrate some differences when it comes to what they buy. For example, acculturated Hispanics spend more than $10.3 billion on 10 categories including skin care, diapers, baby feeding/care, shampoo, facial cosmetics, hair conditioner, women's fragrances, deodorant, hand and body lotion, toothbrushes/dental accessories. Shoppers described as unacculturated, or not adapted to a culture, have shown a penchant for natural, plant-based and sustainably packaged products.

There are national difference within the larger Hispanic population as well. Per Circana's findings, consumers of Mexican origin in the United States grew at the slowest rate (+14%) among the most populous origin group, while the fastest growth has come from Venezuelans (+236% from 2010-2022), Hondurans (+67% in that same time frame), Dominicans (+59%) and Columbians (51%).

As for other shopping behaviors, the research indicates that CPG spending growth for the overall Hispanic population is faster in food and beverage than in non-food, especially in unit sales. The strength in unit sales is underscored with another finding that unacculturated Hispanics tend to buy multi-flavor variety packs of food or beverage items to please different family members.

CPGs can take heed of this influential group’s behaviors and preferences, the researchers noted. “Brands and retailers that align their offerings with Hispanic consumers’ values and preferences — such as offering natural, sustainably packaged products in beauty and personal care, and multi-flavor variety packs for larger households — will unlock new growth opportunities in the years ahead,” said Sally Lyons Wyatt, global EVP and chief advisor at Circana.

Added Marshal Cohen, the company’s chief retail advisor: “Understanding the opportunity in front of retailers and manufacturers is critical for retail growth, and it will become even more important as the Hispanic population grows. Marketers continue to invest in reaching a variety of demographics, and the Hispanic opportunity needs to be part of that focus.”

The reports, "Part I: Meet the U.S. Hispanic CPG Consumer" and "Part II: Hispanics’ CPG Shopping Trends," are available online.