There are a lot of ways you could spend $1.3 trillion. That’s precisely the current spending power of the Hispanic American community.
To find out how exactly what Hispanics spend on, Refuel, a specialist in Hispanic advertising, launched its first-ever proprietary study of this ballooning consumer group. What are they splurging on, you ask? Here’s what we uncovered.
For starters, housing and transportation are their two biggest expenses, at $171.1 billion and $152.5 billion respectively. Of course, that’s to be expected, and pretty on par with the rest of America.
In select categories, though, we discovered some uniquely high spending habits among this group in comparison to the general population. Here’s a look at the three categories they don’t seem to mind spending a pretty penny on.
Hispanic Spending Categories
Food ($120.2 billion annually)
Following Housing and Transportation, Food comes in as the third-highest expense among the Hispanic American community.
Bucking the trend of using popular apps to get grub, this group still largely gets their food the old school way. When hunger strikes, 92% say they satisfy their cravings offline, compared to only 8% who order online.
Which brands are best at accommodating these cravings? Their top five picks range from quintessential fast food to the “premier source for authentic Latino cuisine.” They are: Coke, Starbucks, Goya, Kraft, and McDonald’s.
Let’s just say $120.2 billion could get you a lot of Big Macs.
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Clothing and shoes ($33.9 billion annually)
Who doesn’t love to shop? It’s certain that Hispanics spend here – at $33.9 billion, the clothing and shoes category is among the top 6 in annual spending among Hispanics.
Retailers in this category have a solid chance to woo these consumers online, with 44% saying they go online to fill their closets. Still, offline purchases maintain a slight lead, with 56% saying they buy offline only.
Their favorite brands reveal that their tastes range from affordable to high-end: Nike, Levi’s, Old Navy, Adidas, and Michael Kors round out the top five.
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Phone services ($23.2 billion annually)
The #9 top spending category among this group, Phone Services outpaces Personal Care and even Education.
Not only do Hispanics spend more on their phones, but the trend is primed to continue: 38% say they expect to buy a new smartphone within the next year. That’s more than one in three. Moreover, 15% say they expect to get a new mobile service plan during the same window.
Apple and Samsung are their top-ranked brands in this category — and you can bet they’re seeing a nice chunk of that $23.3 billion.
Whether or not you’re in the food, clothing, or phone services business, getting on the radar of this increasingly valuable audience has never presented more opportunity.
To find out how your brand can get started to engage this community, contact us to receive the full Refuel Agency Hispanic Explorer consumer study and learn more about our proprietary Hispanic consumer database and exclusive Hispanic publisher access — all part of our Multicultural Media + Marketing Solutions for advertisers.