A powerful consumer market with annual spending power exceeding $350 billion, Hispanics—or should that be Latinos?—have become
largest minority group in United States, and a marketplace well-worth looking into and with plenty to see--once you get labels straight. So which is it, “Hispanics” or “Latinos”?
Hispanics and Latinos have hotly debated that question for years, and apparently, picking one answer over other means drawing political, social, and generational lines in sand.
I’ll explain later, but for now let’s get some numbers on table.
Hispanic Database – The Numbers Tell Story
It made headlines! Hispanics are now largest minority group in U.S., outnumbering blacks by nearly 1 million (37 million v. 36.2 million).
That may have been news, but demographers and advocacy groups saw it coming; those population estimates merely confirmed it. With extensive immigration from economic basket case, Latin America--and a robust birthrate among predominantly Catholic Hispanics--this gap is expected to grow. By 2020, Hispanic population could easily double to 70 million, or 21% of U.S. population; by 2050 expect people of Hispanic origin to number more than 100 million. Hispanics are 11.4% of today’s work force, a figure that could easily double in a ten years.
• Over 7.6 million Hispanic households in U.S. average 3.6 people per household.
• U.S. Hispanic households have 2 or more people employed full time; 58% of Hispanics over 18 are employed full time.
• About 1 million Hispanic households in United States have incomes of $50,000 or more
• The average Hispanic household spends $31,013 annually.
• Hispanics are a young population. The median age of U.S. Hispanics is 26.5 compared to a median age of 32.2 for non-Hispanics
• 12.8 million Hispanics were foreign-born; of this number, 1 in 4 were naturalized citizens.
• Among foreign-born Hispanics, 43% entered U.S. in 1990s, while 27% entered before 1980.
• Although 74% of those who entered country before 1970 had obtained citizenship by 2000, only 7% of those who entered between 1990 and 2000 had become citizens. (Becoming a naturalized citizen requires five years of residence in U.S.)
Sources: U.S. Census Bureau 2000 Census of Population and The Hispanic Population in United States, March 2000, Roberto Ramirez and Melissa Therrien.
Flexing Economic and Political Muscle
Today, 7.6 million-plus Hispanic households in U.S. boast higher educational levels, greater access to credit and capital, and more finely tuned technological skills than ever. Consequently, with buying power exceeding $350 billion, current generation of Hispanics is an economic powerhouse.
That Adds up to Prime Marketing Potential
More than half of all Hispanics in U.S. are between ages 18-49, which means most of them are getting married, buying homes, starting families, launching careers, and in many cases, opening their own businesses.
A strong entrepreneurial streak runs through this market, with Hispanic-owned businesses in U.S. totaling 1.2 million firms employing over 1.3 million people and generating $186.3 billion in revenues in 1997, according to a report released this year by Commerce Department's Census Bureau. Indeed, Hispanic-owned companies made up 6% of 20.8 million non-farm businesses in nation and 1% of $18.6 trillion in receipts for all businesses.
Market Positioning Pays (As Always)
The longer Hispanics live in an area and more prosperous they are more invisible they become, and many school districts are having marked success with “immersion” English-language training among Hispanic grade school students. Yet assimilation may never be complete. In most Hispanic communities in U.S., strong cultural identity persists, and that can affect how you market to them. So though times are indeed a-changing (to borrow a phrase), you’ll still find that a fundamental understanding of Hispanic culture and working knowledge of Spanish are assets in this market—make that markets, since Hispanic communities are no more homogeneous than others.
