USHispanics

Hispanic Americans as not just the largest ethnic group in the United States numbering over 41 million, but one of the most dynamic, vital forces shaping America's future. Younger than other groups and rapidly gaining economic and political clout, U.S. Hispanics are a vibrant mix of immigrants and families encompassing several U.S.-born generations; the largest group, behind non-Hispanic whites, in the labor force; of an entrepreneurial bent that is fueling the U.S. economic engine; and projected to account for 46 percent of total U.S.population growth over the next two decades. Exerting an ever-increasing influence on American media, music, fashion and cuisine, Hispanics are retaining much of their cultural heritage as they adopt American political and philosophical views and behaviors. The key to Hispanic American influence exists in the coming of age of the second and third generations that has swelled the ranks of U.S. Hispanics and will continue to do so in the coming decades. Young, U.S.-born and educated, and primarily English speakers, Hispanics are poised to bring about the next American social, and cultural revolution.

• Language
• Economic Clout
• Largest Hispanic Markets
• U.S. Hispanic Entrepreneurs
• U.S. Hispanic Women, Fertility Rates
• U.S. Hispanic Population Age
• U.S. Hispanic Family and Household Characteristics
• U.S. Hispanic Educational Attainment and Demographics
• Understanding the U.S. Hispanic Consumer

Language

U.S. Hispanics are the fifth-largest Spanish-speaking community in the world behind Mexico, Spain, Colombia and Argentina. But the reality is that Hispanics are often just as comfortable in English as in Spanish. Research shows that with population growth being driven by a high birth rate rather than immigration, U.S. Hispanics will become primarily English speakers. In fact, according to the Pew Hispanic Center, 75 percent of Hispanic adults today are either English-dominant or bilingual. Language also plays a central role in defining identity and attitudes, with English-dominant Hispanics expressing views more similar to the general U.S. population than their foreign-born counterparts.

Economic Clout

• Hispanic-American affluence is reflected in higher household incomes. In 2004, 56 percent of all Hispanic households had a total income of more than $35,000 and more than a third— 35 percent—had total household incomes of between $45,000 and $150,000.
• U.S. Hispanic purchasing power posted a compound annual growth rate of 7.7%.
• Higher paying managerial and professional jobs are the fastest-growing occupational categories for Hispanics.
• U.S. Hispanic purchasing power has surged to nearly $700 billion and is projected to reach as much as $1 trillion by 2010.
• The U.S. Hispanic purchasing power rate of growth is nearly three times the overall national rate of the past decade according to data released by the U.S. Bureau of Economic Analysis.

Largest Hispanic Markets

• California and Texas account for more than 34 percent of all Hispanic purchasing power and nearly half of the entire U.S. Hispanic population.
• More than 90 percent of all Hispanic-owned firms, and their sales volume, are concentrated in 20 states.
• California and Florida are home to 52 percent of all Hispanic-owned firms.

U.S. Hispanic Entrepreneurs

• The largest ownership in small business among all minority groups are Hispanic, and is currently over 2 million strong.
• Hispanic female-owned businesses are the fastest growing among all groups, minority and non-minority.
• Spurred by growing entrepreneurial trends and affluence among the nation’s largest minority population, Hispanic-owned businesses are expected to increase at a robust rate of 7.6 percent annually through at least 2010.
• The number of Hispanic-owned businesses in the United States is expected to grow 55 percent in the next six years to 3.2 million, with total revenues surging 70 percent to more than $465 billion.
• Total revenues of Hispanic-owned firms will increase by 70 percent.
• The service and financial sectors show the largest growth.
• Hispanics own more small businesses than any other minority group in the U.S.
• Hispanics have the highest combined revenues among minority small businesses.
• 89% of Hispanic businesses are Sole Proprietorships.
• Hispanic businesses are heavily clustered in the same geographical areas as the U.S. Hispanic population

U.S. Hispanic Women, Fertility Rates

• Fertility rate for Hispanic women in 2000 was 47% higher than the overall U.S. average.
• Hispanic women are a rapidly growing part of the U.S. population, with especially large representation in younger age groups.
• By 2050, Hispanic females are forecasted to comprise nearly one quarter of U.S. women.
• Hispanic women’s economic power is increasing. From 1979 to 2002, Hispanic women gained a 10 percent increase in real earnings.

U.S. Hispanic Population Age

• According to the Census data, nearly 70% of the 41 million U.S. Hispanic population is under 35 years of age and 65 percent of the Hispanic population growth is being driven by U.S. born Hispanics.
• The Hispanic median age is 26 compared to the non-Hispanic median age of 38.

U.S. Hispanic Family and Household Characteristics

• Due to larger families and with children living at home longer than non-Hispanics, the Hispanic household spends more of their after tax income on food products and apparel.
• Hispanics have less income from investments (interest, dividends, trust funds, etc.) than non-Hispanics
• Counting only after tax income, the average Hispanic household spent 104% of their disposable income – they spent more than they earned via credit cards, loans, etc: non-Hispanics spent 94% of their disposable income
• Due to larger families, Hispanics outspend non-Hispanics in clothing, basic house products, selected food items, and personal care.
• Hispanics are proportionately buying homes (first time purchases) at a rate higher than non-Hispanics

U.S. Hispanic Educational Attainment and Demographics

• Over the past years, the Hispanic student population in K-12 has been increasing dramatically, with community college and university enrollments also showing increases. Hispanic student high school completion rates are still at a low rate of 57.5%, one of the lowest among minority groups. Currently, Hispanic high school graduates, nationally, are becoming the largest among all minority groups. For all groups, there is a strong correlation between college participation & family income levels. College participation and completion rates for Hispanics are below that of white & black student populations.
• The Hispanic high school graduates will surpass all minority groups in the 2006-07 academic year.
• Minority enrollments in higher education continue to grow but are still well below the white, non-Hispanic population.
• College participation rates for 18 to 24 year old high school graduates have remained stable for Hispanic & black students, but still below the white student participation rate.
• The six-year college graduation rate for Hispanics is 45%, and Asians lead all groups at 64%.

Understanding the U.S. Hispanic Consumer

• The purchasing power of Hispanics continues to grow dramatically & will triple to nearly one trillion dollars by 2010. Hispanic consumers have distinctive consumption patterns, and the majority of Hispanics are concentrated in four states. Hispanic cultural and behavior buying patterns vary geographically and they react favorably to marketing messages that “touch” their emotions. Hispanic women influence the purchase of large & small household purchases. The medium of choice for reaching Hispanic consumers is television. There has been a tremendous increase in Hispanic print media. Hispanic print media readers have distinctive demographic characteristics and buyer behavior patterns.
• 69% of the Hispanic population is concentrated in four states.
• Their buying power is growing at a compounded annual rate of 7.5% & is expected to double from 2000 to 2010.
• Hispanic purchasing power will continue to outpace annual inflation rates
• Have distinctive consumption patterns in comparison to non-Hispanics.
• 84% of Hispanic women prefer to buy their groceries in traditional supermarket chains
• In most Hispanic homes, the wife/woman of the house plays an important role in the final decision making process for large & small purchases.
• Brands that sell well in the consumer’s country of origin will also do well in the U.S.
• React favorably to marketing messages that touch their “emotions” and where they can speak directly to a person.
• Hispanics spend more time watching TV than non-Hispanics & average the same number of TV sets as non-Hispanics.
• Hispanic households are accessing computers at nearly twice the rate of non-Hispanics.
• Hispanic households who had a computer were more often online compared to all U.S. households.