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Hispanics and Beverages - US

Published by: Mintel International Group Ltd.

Published: Feb. 1, 2008 - 87 Pages


Table of Contents


Scope and Themes

What you need to know

Definition

Data sources

Consumer survey data

Abbreviations and terms

Abbreviations

Terms

Executive Summary

Hispanics can provide growth—even in high-penetration beverages

Value and convenience determine Hispanics’ retail outlet choices for buying non-alcoholic beverages

Diversity among Hispanics calls for local marketing strategies

Acculturation and retro-acculturation—large factor in communicating with Hispanics

Language remains a barrier between Hispanic consumers and marketers

Hispanics present growth potential in fruit juice category

Hispanics continue to drive growth in whole milk category

Coffee remains the favorite hot beverage for Hispanics

Hispanics—ideal target population for regular carbonated beverages

Sports and energy drinks—the biggest growth potential from Hispanic consumers

Hispanics continue to prefer imported beer over domestic beer

Hispanic wine consumption differs greatly by demographics

Targeting specific Hispanic demographics—key to increasing penetration

Language can be a barrier to new product trials

An Overview

The Hispanic population—the fastest-growing minority group; the growth in numbers presents an opportunity for the beverage market

Figure 1: Population, by race and Hispanic origin, 2003-13

Age distribution among Hispanic population bodes well for future growth in the beverage market

Figure 2: Young adults aged 18-34, by Hispanic origin, 2003-13

Figure 3: Incidence of drinking sports and energy drinks, by ethnicity, May 2006-June 2007

Income

Low median income underscores the importance of price promotion and value beverage shopping

Figure 4: Labor force participation, by Hispanic origin, 2005

Figure 5: Median household income, by race and Hispanic origin, 2006

Due to the low household income, Hispanics are likely to gravitate towards value shopping

Figure 6: Choice of retail outlets to purchase beverages, January 2008

This underscores the importance of price promotions to attract Hispanic consumers to the beverage aisle

Figure 7: Important considerations in purchasing non-alcoholic beverages, January 2008

Hispanics have high collective purchasing power; reaching a larger base of consumers is crucial for growth

Figure 8: Hispanic disposable income, 1990-2012

Expand consumer base to tap into collective purchasing power

Hispanics exhibits higher growth in spending on non-alcoholic beverages, compared to non-Hispanics

Figure 9: Per capita expenditures on dairy, non-alcoholic beverages and alcoholic beverages, by Hispanic origin, 2005 and 2006

Country of Origin and Nativity

Figure 10: Hispanics, by country of origin/heritage, 2006

Figure 11: Consumption of wine by Hispanics, by heritage, May 2006-June 2007

Nativity creates difference in beverage preferences and purchase behavior

Native-born Hispanics are likely to mirror beverage preferences and purchase behavior close to the general population

Figure 12: Native-born/foreign-born Hispanics, by country of origin/heritage, 2006

The Hispanic Household

Hispanics’ above-average households will help drive growth in non-alcoholic beverages

Figure 13: Households, by presence of children and Hispanic origin, 2006

Figure 5: Average household size, by Hispanic origin/race of householder, 2001 and 2006

Figure 14: Households, by number of persons in the household—Hispanics vs. non-Hispanics 2006

Hispanic families shop together; harness children power to drive growth

Figure 15: Shopping companion preferences—Hispanics vs. non-Hispanics, May 2006-June 2007

Culture and Enculturation

Culture—an important aspect in marketing to Hispanics

Enculturation, acculturation and retro-acculturation

Length of residence in the U.S.—an important acculturation assessment metric

Figure 16: Personal incidence of drinking carbonated beverages and household incidence of drinking milk, by length of stay in the U.S., May 2006-June 2007

Language—a key indicator in assessing the level of acculturation of Hispanics

Figure 17: Level of acculturation, by language, May 2006-June 2007

Level of acculturation by region

Figure 18: Language Hispanics speak in the home, by U.S. region, May 2006-June 2007

Geographic Concentration

Five states account for 68% of the total Hispanic population

Figure 19: Hispanic population in top five states, by country of origin, 2006

Hispanics tend to live in big communities; top ten markets can serve as launch pad for the new beverages

Figure 20: Metropolitan areas with the largest number of Hispanic residents, by country of origin, 2006

Figure 21: Largest Hispanic Markets, by Hispanic disposable income, 2005

Hispanic population by four major regions

Figure 22: Hispanic population in four regions, by country of origin, 2006

Innovation and Innovators

Fruit and vegetable juices

Milk, and milk flavorings

Coffee and tea

Carbonated soft drinks

Other non-alcoholic beverages

Beer; new products imitate Hispanic taste palate

Advertising and Promotion

Heineken Premium light lager

Figure 23: Heineken Premium light lager, 2007

Jose Cuervo Tequila

Figure 24: Jose Cuervo Tequila, 2007

Smirnoff Ice

Miller Lite

Heineken

Coca-Cola

The People: Non-alcoholic Beverages

Fruit and vegetable juices—Hispanic households have potential to drive growth in this segment

Figure 25: Household consumption of fruit and vegetable juice, by Hispanic origin, May 2006-June 2007

Figure 26: Household consumption of fruit and vegetable juice by Hispanics, by language spoken at home, May 2006-June 2007

Figure 27: Household consumption of fruit and vegetable juice by Hispanics, by number of people in household, May 2006-June 2007

Figure 28: Household consumption of fruit and vegetable juice by Hispanics, by heritage, May 2006-June 2007

Milk, and milk flavorings

Figure 29: Household consumption of milk, by Hispanic origin, May 2006-June 2007

Figure 30: Hispanic household consumption of milk, by nativity, May 2006-June 2007

Figure 31: Household consumption of milk by Hispanics, by language spoken at home, May 2006-June 2007

Coffee and tea

Figure 32: Household consumption of coffee and tea, by Hispanic origin, May 2006-June 2007

Figure 33: Household consumption of coffee and tea by Hispanics, by nativity, May 2006-June 2007

Figure 34: Household consumption of coffee and tea by Hispanics, by heritage, May 2006-June 2007

Carbonated soft drinks

Figure 35: Individual consumption of carbonated soft drinks, by Hispanic origin, May 2005-June 2006

Figure 36: Individual consumption of carbonated soft drinks by Hispanics, by language spoken at home, May 2006-June 2007

Figure 37: Individual consumption of carbonated soft drinks, by heritage, May 2006-June 2007

Other non-alcoholic beverages

Figure 38: Individual consumption of other non-alcoholic beverages, by Hispanic origin, May 2006-June 2007

Figure 39: Individual consumption of other non-alcoholic beverages by Hispanics, by nativity, May 2005-June 2006

The People: Attitudes and Motivation

Important product attributes and considerations in purchasing non-alcoholic beverages

Figure 40: Important product attributes and considerations in purchasing non-alcoholic beverages, by age, January 2008

Influence of marketing and promotions on non-alcoholic beverage purchase

Figure 41: Influencers in non-alcoholic beverage purchase, by age, January 2008

Supermarkets have opportunities to drive growth by increasing penetration

Figure 42: Choice of retail outlets to purchase beverages, by level of acculturation, January 2008

The People: Alcoholic Beverages

Beer

Figure 43: Incidence of personal beer consumption, by Hispanic origin, May 2006-June 2007

Distilled spirits

Figure 44: Incidence of Hispanics’ consumption of distilled spirits and cordials/liqueurs, by heritage, May 2006-June 2007

Figure 45: Consumption of distilled spirits and cordials/liqueurs by Hispanics, by income, May 2006-June 2007

Wine

Figure 46: Consumption of wine, by Hispanic origin, May 2006-June 2007

Figure 47: Consumption of wine by Hispanics, by nativity, May 2006-June 2007

Figure 48: Consumption of wine by Hispanics, by heritage, May 2006-June 2007

Other alcoholic beverages

Figure 49: Consumption of other alcoholic beverages by Hispanics, by nativity, May 2006-June 2007

Appendix: Other Useful Consumer Tables

Fruit and vegetable juices

Figure 57: Household consumption of fruit and vegetable juice by Hispanics, by presence of children in household, May 2005-June 2006

Milk and milk flavorings

Figure 58: Household consumption of milk by Hispanics, by presence of children in household, May 2006-June 2007

Coffee and tea

Figure 59: Household consumption of coffee and tea by Hispanics, by income, May 2006-June 2007

Figure 60: Household consumption of coffee and tea by Hispanics, by language spoken at home, May 2006-June 2007

Figure 61: Household consumption of coffee and tea by Hispanics, by presence of children, May 2006-June 2007

Carbonated soft drinks

Figure 62: Individual consumption of carbonated soft drinks by Hispanics, by nativity, May 2006-June 2007

Figure 63: Individual consumption of carbonated soft drinks by Hispanics, by gender, May 2006-June 2007

Figure 64: Individual consumption of carbonated soft drinks by Hispanics, by income, May 2006-June 2007

Figure 65: Individual consumption of carbonated soft drinks by Hispanics, by presence of children in household, May 2006-June 2007

Other non-alcoholic beverages

Figure 66: Individual consumption of other non-alcoholic beverages by Hispanics, by language spoken at home, May 2006-June 2007

Figure 68: Individual consumption of other non-alcoholic beverages by Hispanics, by gender, May 2006-June 2007

Figure 69: Individual consumption of other non-alcoholic beverages by Hispanics, by presence of children in household, May 2006-June 2007

Figure 70: Individual consumption of other non-alcoholic beverages by Hispanics, by region, May 2006-June 2007

Figure 71: Individual consumption of other non-alcoholic beverages by Hispanics, by age, May 2006-June 2007

Alcoholic beverages

Beer

Figure 72: Incidence of personal beer consumption by Hispanics, by nativity, May 2006-June 2007

Figure 73: Incidence of personal beer consumption by Hispanics, by language spoken at home, May 2006-June 2007

Figure 74: Incidence of personal beer consumption by Hispanics, by gender, May 2006-June 2007

Figure 75: Incidence of personal beer consumption by Hispanics, by income, May 2006-June 2007

Distilled spirits

Figure 76: Consumption of distilled spirits and cordials/liqueurs, by Hispanic origin, May 2006-June 2007

Figure 77: Consumption of distilled spirits and cordials/liqueurs by Hispanics, by nativity, May 2006-June 2007

Figure 78: Consumption of distilled spirits and cordials/liqueurs by Hispanics, by language spoken at home, May 2006-June 2007

Figure 79: Consumption of distilled spirits and cordials/liqueurs by Hispanics, by gender, May 2006-June 2007

Figure 80: Consumption of distilled spirits and cordials/liqueurs by Hispanics, by age, May 2006-June 2007

Wine

Figure 81: Consumption of wine by Hispanics, by gender, May 2006-June 2007

Other alcoholic beverages

Figure 82: Consumption of other alcoholic beverages, by Hispanic origin, May 2006-June 2007

Figure 83: Consumption of other alcoholic beverages by Hispanics, by gender, May 2006-June 2007

Appendix: Trade Associations

Abstract

Hispanics are the largest minority in the US, with purchasing power projected to exceed $1.2 trillion by 2012. This report provides industry stakeholders with information they need to assess growth opportunities and segregate target consumers by the level of acculturation.

Analysis includes:
  • The key Hispanic subgroups carrying growth potential in the market
  • How Hispanic household income determines shopping habits and choice of retail channels
  • How marketers can expand their Hispanic consumer base
  • How level of acculturation influence purchase behavior
  • The influence of country of origin on beverage choices
  • Hispanics’ preference for certain non-alcoholic beverages
  • Role of bilingual packaging in driving sales
This report examines consumption of beverages by Hispanics, comparing use of beverages by Hispanics against the general population. In addition, it examines differences within the Hispanic population according to relevant demographic variables, including nativity (whether native-born or immigrants), language spoken at home, heritage, household income, and region of residence. In addition, for questions that are asked about household consumption, the influence of children in the household is examined. For individual consumption, differences between men and women are considered.

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