U.S. Hispanic Market: a force to reckon with...and a boon to savvy marketers

An article from The Wall Street Journal (May 1st) titled Surge in U.S. Hispanic Population Driven by Births, Not Immigration, illuminates just how profoundly the U.S. demographic shifts that are currently taking place will forever change the nation -- and the breakneck speeds at which those changes are occurring.

The 45.5 million Hispanics currently in the U.S. are up from 35.7 million in 2000, with the growth among Hispanics responsible for half of the U.S. population gains between 2000 and 2007. While that increase is nothing short of astronomical, what is most surprising is how it's happened. According the article:

"Hispanics now account for more than 15% of the U.S. population, and their surge is largely the result of births among people already in the country--not immigration. In the 1990s, a flood of Hispanic immigrants explained most of the group's population rise. That has changed in recent years. Between 2006 and 2007, about 62% of the increase in Hispanics came from births."

Hispanic families tend to have more children, while white families are having less. But what is also increasing is Hispanics' purchasing power. As the article states:

"Growth in spending by Hispanics is likely to outstrip that of the general population in coming years. Hispanics control more disposable income than any other minority group. The figure stands at $860 billion a year and is expected to hit $1.3 trillion by 2012, according to Jeffrey Humphreys, who monitors Hispanic demographic and economic trends at the University of Georgia's Selig Center.

Between their numbers and disposable income, Hispanics are already a vital market for politicians and marketers. But these numbers point to how they'll only become more so. And while Hispanics are quickly redefining mainstream America, they're also fragmenting into many micro-niches (read more on micro-niches here) who seek products that align with their cultural heritage as well as the country they now call home.

That only leaves the door open for more innovations across many industries including television programs, music, fashion and, most notably, specialty foods. After all, our markets are changing, so too must our branding. Some reading that covers these new "tastemakers" that are influencing their growing market's preferences--as well as those of the mainstream--is located here. And a three-minute video by The Wall Street Journal on the Hispanic market's dramatic growth and its implications is located below (RSS and email subscribers, please click through to the blog to view).