"...since this young, burgeoning market is
extremely diverse, marketers should be aware of extensive
demographic and economic differences among the Hispanic
Lynn Franco, Director of The Conference
Board's Consumer Research Center
Hispanic households across America will sharply increase both their numbers and
economic clout over the next ten years,
The Conference Board reports today in a
comprehensive new study.
The number of Hispanic households is expected to increase at a faster pace than
that of any other group in the United States, continuing a demographic explosion
that began several decades ago.
Today's 10 million-plus Hispanic households will soar to 13.5 million by 2010,
up from less than 6 million in 1990. These households will control $670 billion
in personal income six years from now, with Mexican-American households
accounting for $409 billion of this total.
Households hailing from Central and South America will earn $107 billion by
2010, with Puerto Rican households controlling $65 billion. Cuban families will
account for $32 billion, with the remaining $56 billion being earned by Spanish,
Dominican and other Hispanic households.
(The Conference Board study defines "Hispanics" as people whose origin is in
Mexico, Puerto Rico, Cuba, South and Central America or other Hispanic/Latino
regions, including Spain and the Dominican Republic, regardless of race.)
Hispanic households tend to be younger on average than the U.S. population at
large. Of the more than 10 million Hispanic households, 38 percent are currently
headed by someone under 35, and an additional 25 percent are led by someone
between the ages of 35 and 44 (the national average for homes with heads under
35 is 23 percent.) By 2010, the under-45 Hispanic market will increase to 8
million households, and its purchasing power will leap from the current level of
less than $295 billion to $397 billion. In other words, $3 out of every $5
flowing to Hispanic households in 2010 will be in the hands of this
A Vast Market Opportunity For Many Firms
"As the Hispanic market keeps growing both in size and buying power, companies
in a wide variety of industries will enjoy significant marketing opportunities,"
says Lynn Franco, Director of The Conference Board's Consumer Research Center.
"But since this young, burgeoning market is extremely diverse, marketers should
be aware of extensive demographic and economic differences among the Hispanic
Where They Are:
At 6.5 million households - more than 80 percent of which are in the Pacific,
West South Central, and Mountain regions - the Mexican community is by far the
largest Hispanic group. More than 55 percent of these households include
children under 18, and more than two-thirds of householders are under 45. By
2010, this group is expected to top 8.5 million, with nearly 62 percent of all
households headed by someone under 45. Forecasts indicate that the Mexican
population's total purchasing power will surpass $409 billion by 2010.
Central and South American households number 1.6 million, representing the
second largest contingent of the Hispanic community. At least 75 percent of
these households are concentrated in the Pacific, South Atlantic, and Middle
Atlantic regions. This market is also young - two out of three household members
are under 45. This group will number nearly 2 million households by 2010, with
60 percent of households headed by someone under 45. The purchasing power of
Central and South American households is projected to rise from the current
level of $76 billion to $107 billion.
Numbering 1.2 million, Puerto Rican households are the third largest Hispanic
group, with more than two-thirds residing in the South Atlantic and Middle
Atlantic regions. While this segment of the Hispanic market is also quite young,
a substantial proportion of the population is over 45. The number of Puerto
Rican households will reach 1.5 million by 2010, and almost half of the
household heads will be over 45. Current estimates indicate that aggregate
household income for this group will climb from $46 billion to $65 billion.
At just over 511,000, Cuban households are the smallest defined segment of the
Hispanic community, with close to three-quarters of the population located in
the South Atlantic region. Persons 55 and older head a majority of the
households. This group's purchasing power is projected to increase by 45 percent
to $32 billion by 2010.
All other Hispanics account for 757,000 households - with heads under age 45
making up nearly half of this population. More than 60 percent live in the
Middle Atlantic, Mountain, and Pacific regions. This group is projected to
number 1 million by 2010, and its total purchasing power will reach $56 billion,
an increase of 44 percent.
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