Survey: Hispanic consumers outspend non-Hispanic counterparts
Hispanic consumers overall are outspending their non-Hispanic counterparts, a Nielsen survey found.
In a blog posted last week, Nielsen reported that Hispanic consumers had increased their dollar spending in the U.S. FMCG industry by 0.7% in the year-ended Oct. 28, 2017, while non-Hispanic spending was down by 0.1%. In fact, Hispanics out-spent non-Hispanic consumers in 12 of 16 primary FMCG categories over the past year, a Nielsen Hispanic survey found.
That would be great news for CPG manufacturers, but for the fact that the 57 million Hispanic consumers are joining non-Hispanic consumers in choosing own brands for their purchases. Notably, 72% of all Hispanics say they believe store branded products are a good alternative to name brands. That percentage, however, drops to 66% among Hispanics who prefer Spanish over English.
The differences between Hispanics who prefer Spanish over English are even more pronounced across store formats. For example, 70% of all Hispanics say they have shopped at a grocery store in the past three months. Comparatively, only 33% of Hispanics who prefer Spanish over English have shopped at a grocery store in the same period. So where are Hispanics who prefer Spanish over English shopping more? Compared with the total Hispanic group, Hispanics who prefer Spanish are shopping significantly more at discount grocers, dollar stores, ethnic stores and drug stores.
Online purchase trends vary among Hispanics as well. For example, 42% of all Hispanics who shop online for groceries and household items say they have shopped less frequently over the past three months. Among Hispanics who prefer Spanish, that percentage rises to 69%. Comparatively, it falls to 30% among Hispanics who prefer English to Spanish and 54% of this group says they’ve shopped online more in the past three months.
"It’s never a good idea to assume that consumer preferences are homogeneous—even among similar demographics. And when it comes to the FMCG market, manufacturers and retailers can’t afford to assume," the Nielsen blog post concluded. "While Hispanics overall are accepting of private-label products and make purchases to share with others, more specific shopping trends vary within the broader group. Specifically, Hispanics who prefer Spanish favor smaller-format stores and are buying less online, both of which are key differentiators that stand in contrast to the overall Hispanic consumer group."
In a blog posted last week, Nielsen reported that Hispanic consumers had increased their dollar spending in the U.S. FMCG industry by 0.7% in the year-ended Oct. 28, 2017, while non-Hispanic spending was down by 0.1%. In fact, Hispanics out-spent non-Hispanic consumers in 12 of 16 primary FMCG categories over the past year, a Nielsen Hispanic survey found.
That would be great news for CPG manufacturers, but for the fact that the 57 million Hispanic consumers are joining non-Hispanic consumers in choosing own brands for their purchases. Notably, 72% of all Hispanics say they believe store branded products are a good alternative to name brands. That percentage, however, drops to 66% among Hispanics who prefer Spanish over English.
The differences between Hispanics who prefer Spanish over English are even more pronounced across store formats. For example, 70% of all Hispanics say they have shopped at a grocery store in the past three months. Comparatively, only 33% of Hispanics who prefer Spanish over English have shopped at a grocery store in the same period. So where are Hispanics who prefer Spanish over English shopping more? Compared with the total Hispanic group, Hispanics who prefer Spanish are shopping significantly more at discount grocers, dollar stores, ethnic stores and drug stores.
Online purchase trends vary among Hispanics as well. For example, 42% of all Hispanics who shop online for groceries and household items say they have shopped less frequently over the past three months. Among Hispanics who prefer Spanish, that percentage rises to 69%. Comparatively, it falls to 30% among Hispanics who prefer English to Spanish and 54% of this group says they’ve shopped online more in the past three months.
"It’s never a good idea to assume that consumer preferences are homogeneous—even among similar demographics. And when it comes to the FMCG market, manufacturers and retailers can’t afford to assume," the Nielsen blog post concluded. "While Hispanics overall are accepting of private-label products and make purchases to share with others, more specific shopping trends vary within the broader group. Specifically, Hispanics who prefer Spanish favor smaller-format stores and are buying less online, both of which are key differentiators that stand in contrast to the overall Hispanic consumer group."