Seven Sectors that will Benefit Most from the Rapidly Growing US Hispanic Population
If the US Hispanic market were its own country, its buying power would make it one of the
world’s top 20 economies. In fact, the US Hispanic market is projected to account for $1.5 trillion in purchasing power by 2015. The US Hispanic population makes up 66% of the total US Limited English Proficient(L.E.P.) Population.
It goes without saying that there are a number of business sectors that stand to benefit from this rapidly growing, diverse population, but which sectors will benefit the most from this dramatic demographic shift in the United States?
In a study by IBISWorld, the following seven industries identified as having the most to gain by the US Hispanic population growth:
- Residential buying, food (grocery and restaurants)
- Retail (especially clothing and electronics)
- Education (higher education and technical schools)
- Real Estate
- Financial Services
- Entertainment and Media
Income Increase gives Hispanics more buying power
Not only is the Hispanic population growing, but their wealth is as well. From 2000-2011, Hispanic household income grew 31% in the $75-99.9K annual income bracket and 71% in the $100K+ bracket.
This increase allows companies to expand without having to look outside of the US for market growth.
Negative percentages in the graph represent a decrease in population of those income brackets during the 11 year span from 2000-2011.
By 2015, Hispanic buying power is projected to be $1.5 trillion compared to $1 trillion in 2010. Increased wealth means bigger purchases. This increase will directly affect the automotive industry where by 2016, Hispanics will contribute roughly $14 billion. A recent automotive market survey showed the top five car brands among Hispanics between the ages of 18 and 34 are: Mitsubishi, Nissan, Toyota, Suzuki, and Honda. This is in large part due to their major marketing efforts within the Hispanic community.
This example from the automotive industry shows the growth potential for the businesses in the seven sectors that target their marketing and advertising efforts towards the growing affluent US Hispanic population. These businesses will see steady growth for many years to come.
The US Hispanic population makes up 66% of the total US Limited English Proficient (L.E.P.) Population. Being able to communicate to them in their language would be a large benefit to any of the business sectors.
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