HISPANIC FAST FACTS
|The Power of the Hispanic Market (Demographics)||Hispanic Purchasing Power||Trends in Hispanic Advertising|
|Language Preference & Media Usage||Trends in Hispanic Businesses||Other Facts|
Source: Heartland Draws Hispanics
• The estimated Hispanic population of the United States is 52,000,000 (as of July 2011), making people of Hispanic origin the nation's largest ethnic or race minority. Hispanics constituted 16.7 percent of the nation's total population. In addition, there are 3.7 million residents of Puerto Rico, a U.S. territory. Source: 2011 Population Estimates <http://www.census.gov/popest/data/national/asrh/2011/index.html>
THE POWER OF THE HISPANIC MARKET
• The projected Hispanic population of the United States on July 1, 2050 will be 132.8 million. According to this projection, Hispanics will constitute 30 percent of the nation's population by that date. Source: Population Projections <http://www.census.gov/newsroom/releases/archives/population/cb08-123.html>
• There are 8 states in the U.S. that have a population of 1 million or more Hispanic residents: Arizona, California, Colorado, Florida, Illinois, New Jersey, New York and Texas. Source: U.S. Census Bureau, August 2012.
• The Californai Department of Finance estimates that by the middle of 2013, whites and Latinos will each represent about 39% of California population, with Latinos reaching a greater percentage soon after that.
• 1 in 6 Americans is now a Hispanic.
• The size of the U.S. Hispanic population worldwide ranked 2nd, as of 2010. Only Mexico (112 million) had a larger Hispanic population than the United States (50.5 million). Source: International Data Base <http://www.census.gov/ipc/www/idbsum.html>
• The Hispanic labor force grew by 53 percent from 2000 to 2010 -- the largest increase of any segment. <2006-2010 American Community Survey Equal Employment Opportunity Tabulation>
• Hispanic kids make up 23% of the 17 & under U.S. population (over 17 million). This is a 39% increase in 10 years.
• Every 30 seconds, a Hispanic turns 18 years old.
• Sixty-five percent of U.S. Hispanics are Millenials, ages 22 to 35.
• Hispanic refers to a person of Mexican, Puerto Rican, Cuban or other Spanish/Hispanic/Latino culture or origin, and is considered an ethnic category rather than a racial group. Persons of Hispanic origin therefore may be of any race, and since their culture varies with the country of origin, the Spanish language often is the uniting factor. Three out of every five Hispanics living in the U.S. are born here, and among the foreign born, most are of Mexican origin, which suggests that a great many Hispanics share similar backgrounds and cultural experiences. Nonetheless, spending patterns differ significantly based on country of origin, and the composition of the nation’s Hispanic population is changing.*
• According to responses from the Pew Hispanic Center survey (April 2012) of Hispanic adults 18+ about one-quarter (24%) of Hispanic adults say they most often identify themselves by “Hispanic” or “Latino”. About half (51%) say they identify themselves most often by their family's country or place of origin-using such terms as Mexican, Cuban, Puerto Rican, Salvadoran or Dominican.
• More than half of the growth in the total U.S. population between 2000 and 2010 was because of the increase in the Hispanic population. Between 2000 and 2010, the Hispanic population grew by 43 percent, rising from 35.3 million in 2000 to 50.5 million in 2010.
• The rise in the Hispanic population accounted for more than half of the 27.3 million increase in the total U.S. population. By 2010, Hispanics comprised 16 percent of the total U.S. population of 308.7 million.
• The projected Hispanic population of the United States will be 132.8 million by July 1, 2050. According to this projection, Hispanics will constitute 30 percent of the nation's population.
• There were 10.7 million Hispanic family households in the U.S. in 2011. Source: U.S. Census Bureau, August 2012.
• Hispanics are expected to account for 40 percent (5 million) of the estimated 12 million to 14 million net new households within the next decade. (State of Hispanic Homeownership, National Association of Hispanic Real Estate Professionals, 2012)
• Hispanic households are larger than non-Hispanic households (3.3 persons per household for Hispanics versus 2.4 persons for non-Hispanics); and have twice as many children under 18.
• Presently, 1 in 5 teens is of Hispanic decent, says Selig Center for Economic Growth. By 2020 the Hispanic teen population is expected to grow 62 percent compared with 10 percent growth in the number of teens overall.
• Hispanic estimated purchasing power is $1.2 trillion in 2012 according to the Selig Center for Economic Growth. In sheer dollar power, Hispanics' economic clout will rise from $212 billion in 1990, to $489 billion in 2000, to $978 billion in 2009 and to $1.5 trillion in 2015. U.S. Hispanic buying power will grow faster than African-American buying power (54 percent), Native American buying power (65 percent) and Asian buying power (89 percent).*
• Despite markedly lower average income levels, Hispanic households spent more on telephone services, men’s and boys’ clothing, children’s clothing, and footwear. Also, Hispanics spent a higher proportion of their money on food (groceries and restaurants), housing, utilities, and transportation.*
• Hispanics spent about the same as non-Hispanics on housekeeping supplies, furniture, appliances, women’s and girl’s clothing, and personal care products and services. Compared to non-Hispanics, they spent substantially less on alcoholic beverages, health care, entertainment, reading materials, education, tobacco products, cash contributions, and personal insurance and pensions.*
• The share of buying power controlled by Hispanic consumers will rise from 5 percent in 1990 to 6.8 percent in 2000 and to 9.1 percent in 2009, and the group’s share will rise in every state.
• The ten states with the largest Hispanic markets, in order, are California ($253 billion), Texas ($175 billion), Florida ($101 billion), New York ($76 billion), Illinois ($43 billion), New Jersey ($37 billion), Arizona ($31 billion), Colorado ($21 billion), New Mexico ($18 billion), and Georgia ($15 billion).
• In 2008, 25 percent of children younger than 5 years were Hispanic and Hispanics comprise 22 percent of all children younger than 18.
• Hispanics' spending patterns already help to determine the success or failure of many youth-oriented products and services. According to the 2007 American Community Survey, 33.9 percent of the Hispanic population is under age 18 compared to 22.8 percent of the non-Hispanic population. Also, in 2007, only 5.5 percent of Hispanics were over 65, compared to 23.8 percent of the non-Hispanic population.
• U.S. Latinos accounted for 11%, or $2.2 billion, of total e-commerce purchases made across the United States in the first quarter of 2012. (Ad Age, Six Things Advertisers Need to Know About the Growing Hispanic Market)
• This segment contributed 34.8% of the growth in the Technology, Telecommunications and Entertainment industries according to our Ad Spend research.
TRENDS IN HISPANIC ADVERTISING
• The Hispanic advertising industry is outpacing all other sectors of advertising growing 4 times faster and is now more than $5 billion industry.
• The share of media dollars allocated to the Hispanic market increased in 2009 despite the recession and near double-digit cuts in overall advertising spending among top 500 advertisers.
• Advertisers allocated 5.4 percent of ad dollars during the recession to reach and connect with Hispanic consumers, up from 5.1 percent in 2008 and slightly below the 5.6 percent historical high in pre-recession 2007. Although ad spending targeting non-Hispanics by the top 500 advertisers dropped by 9.5 percent in 2009, Hispanic spending declined by only 4.4 percent.
• In 2009, companies in what AHAA termed Best-In-Class tier in the Hispanic Marketing Investment Report increased their aggregate Hispanic spending an impressive 25 percent over 2008 compared to their non-Hispanic spending increase of only 11 percent. The number of companies in the Best-In-Class category, defined by their allocation of more than 11.8 percent of ad budgets to Hispanic media, increased from 32 to 40 last year with an average allocation of 21.4 percent.
• According to Kantar Media, Ad Spend Growth rates as of June 2012 have increased by 20.7% compared to 1.7% of non-Hispanic market.
• AHAA's research has found that Hispanic Allocation is rewarding for companies:
- Plus 1 point increase in allocation nets +0.68% point increase in annual revenue growth rate for Technology, Telecommunications and Entertainment companies
- Plus 1 point increase in allocation nets from +0.48% to 1.28% in overall corporate revenue growth rate for CPG companies
• An increase of 4.6% in Hispanic media spend was seen in 2011
- Spot Radio and Internet gained larger shares than the total
- Other Print saw the largest spend increase (56.7%)
• Forty-two percent of Hispanics agree that, "The online ads that are most likely to get my attention are ones that are more sophisticated in their implementation of newly available technology and are creatively sharp." That figure is up from 35% from the Terra 2010 Ad Value Study by comScore.
• Advertising dollars to Spanish-language television increased 17.8 percent during the second quarter of 2012, according to the latest report from Kantar Media. For the most part, Hispanic media fared better than its non-Latino counterparts, which saw year-over-year declines in Q2. Spanish-language magazines posted an 8.9 percent increase in advertising dollars while Latino newspapers saw a 2.5 percent decline.
• More than eight-in-ten (82%) Latino adults say they speak Spanish, and nearly all (95%) say it is important for future generations to continue to do so.
Sources: Pew Hispanic Center (April 2012), tr3s 2011 Hispanic Millennial Study, Maximo Report 2012 by Motivo Insights and NGLC
• The majority of Hispanics (59 percent) claim to speak Spanish all the time, with another third saying they speak Spanish at least half of the time. Only four percent of Hispanics claim to never speak Spanish, according to Market Segment Research.
• U.S. residents 5 and older who spoke Spanish at home in 2010 was 37 million or 75.1%. Those who hablan español constituted 12.8 percent of U.S. residents 5 and older. More than half of these Spanish speakers spoke English “very well.” Source: U.S. Census Bureau, 2010 American Community Survey: Tables B16001, Table B16006 <http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ACS_10_1YR_B16001&prodType=table>
• Hispanics spend an average of 17.3 hours per week watching Spanish language TV, 12 hours listening to Spanish language radio, 1.6 hours reading Spanish language magazines and 1.2 hours reading Spanish language newspapers; compared with 11.6 hours watching English language television, 7 hours listening to English radio, 1.7 hours reading English magazines and 2 hours reading English newspapers, according to Market Segment Research.
• Hispanics on average are spending 8.3 hours per week watching TV, against 8.7 hours per week online. (Terra's 2012 Hispanic Digital Consumer Study by comScore)
• Hispanic radio usage is greater than the general market (RADAR 109, June 2011, Arbitron)
• Experian Simmons found that 48% of Hispanics speak predominantly Spanish at home while 57% speak mostly English outside of the home (2012 National Hispanic Consumer Study)
• In March 2012 Javier Palomarez, President and CEO of the USHCC said, “Despite the challenges brought about by the recession, Hispanic businesses have still managed to thrive, growing over 44 percent in the past five years and generating new ventures three times faster than the general population.” (Fox Latino)
• The number of Hispanic-owned businesses in the United States increased by 43.6 percent to 2.3 million, more than twice the national rate of 18.0 percent between 2002 and 2007. About 45.8 percent of all Hispanic-owned businesses are owned by people of Mexican origin.**
• Hispanic-owned businesses generated $350.7 billion in sales in 2007, up 58 percent compared with 2002. The number of Hispanic-owned businesses with receipts of $1 million or more increased 51.6 percent — from 29,168 to 44,206 businesses between 2002 and 2007.**
• Hispanic-owned businesses comprise 23.7 percent of all businesses in New Mexico, highest among all states, followed by Florida (22.4 percent), Texas (20.7 percent), California (16.5 percent) and Arizona (10.7 percent).**
• More than half of Hispanic business owners (55 percent) were born in the U.S., and for those business owners born outside the U.S., they have lived in the country for an average of 35.4 years. (PNC Bank Study, 2012)
• In 2007, businesses owned by people of Mexican origin accounted for 45.8 percent of Hispanic-owned businesses; Cuban origin accounted for 11.1 percent, Puerto Rican-owned businesses accounted for 6.9 percent and businesses owned by other people of Hispanic origin accounted for 34.5 percent.
• The number of businesses owned by people of Mexican origin increased by 47.7 percent between 2002 and 2007; the number of Puerto Rican-owned businesses increased by 43.0 percent, the number of Cuban-owned businesses increased by 65.5 percent, and the number of other Hispanic-owned businesses increased by 30.6 percent.
• The number of Hispanic-owned businesses with 100 or more employees increased by 26.4 percent from 1,508 to 1,906. These businesses generated $74.2 billion in revenues, an increase of 76.6 percent from 2002.
• Of all companies owned by minority women, 36 percent are owned by Latinas, a number that continues growing and is generating $55 billion a year, according to the 2010 U.S. Census. (USHCC March 2012)
• Home ownership for Hispanics grew from 4.2 million in 2000 to 6.7 million in 2012, a 58 percent increase. The rest of the U.S. population saw just a 5 percent increase. (State of Hispanic Homeownership, National Association of Hispanic Real Estate Professionals, 2012)
• A recent Google study showed 86 percent of U.S. Hispanics have a high-speed Internet connection in their homes and 78 percent use the Internet as their main information source, even more than television.
• There were 32.5 million Hispanic Internet users as of May 2012 according to comScore. Seventy-two percent of Hispanic Internet users visited Facebook in May 2012 and almost 15% of Facebook's audience is Hispanic, up from 14.5% in 2011.
• According to BIGInsight’s February 2012 “American Pulse Survey,” 26.8% of Hispanic internet users spent six hours or more on social media sites, versus only 8.5% of total internet users.
• At 33.5 million individuals, the US Hispanic online market continues to grow at explosive levels and remains a relatively untapped segment of both the online population as well as the aggregate Hispanic market. Online Hispanics are young, affluent, and responsive to targeted online experiences that appeal to their language needs and cultural predispositions. Online Hispanics are: In their main household formation years; Affluent and have buying potential; Extremely engage with social media; Highly active mobile users; Accessing the Internet for education, empowerment, communication and entertainment; and Bilingual. (Source: Captura Group)
• The mobile internet is another arena in which Hispanics are at the leading edge. Over three-quarters of Hispanics used the mobile internet, compared with 73% of blacks and only 60% of whites. (Source: eMarketer, 2013)
• Hispanic mobile users who are bilingual are 39% more likely to own a smartphone compared to an average mobile user (May 2012 comScore / Ad Age Hispanic Fact Pack)
*Sources: U.S. Census Bureau, 2007 Survey of Business Owners: Hispanic-Owned Businesses (provides detailed information every five years); Selig Center for Economic Growth, Terry College of Business, The University of Georgia, July 2009; The NPD Group; Google.
**Source for statements in this section: Statistics for All U.S. Firms by Industry, Gender, Ethnicity, and Race for the U.S., States, Metro Areas, Counties, and Places: 2007, Table SB0700CSA01 <http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=SBO_2007_00CSA01&prodType=table>
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Updated: April 2013