Not so long ago, Hispanic consumers were considered the most brand loyal of any other ethnic group; but changes in the US economy became a game changer for most Hispanic grocery shoppers. This shift provided a significant opportunity for Private Brands; more than half of Hispanic consumers have purchased a private label product in the last year. Those Private Brands that have not reached out to Hispanics should keep in mind that Hispanics have larger households and their grocery bill is higher than that of non-Hispanics. Almost 50% of Hispanic households have children under the age of 18 compared to 27% of U.S. households; food and non-food items that are driven by the presence of children in the home can only benefit from reaching out to this consumer group.
Based on the Mintel report The Hispanic Private Label Consumer, language is a much greater factor than household income in the likelihood that Hispanics will purchase a private label product. Bilingual and English-dominant Hispanic households are more likely to purchase a private label product, which is quite interesting since it is the Spanish-dominant homes that tend to have lower household income and so are more likely to be price sensitive. This does not mean that Spanish-dominant households are not purchasing private label products, almost half of them are, but the opportunity to drive sales among these consumers can’t be ignored.
Leylha Ahuile is the Senior Multicultural Analyst for Mintel Group. Prior to joining Mintel, Prior to joining Mintel, Leylha was president and owner of PromoLatino, an agency dedicated to national and international Spanish-language book publishers. Leylha, a native of Chile, has vast experience focusing on U.S. Hispanic consumers on various consumer goods, telecommunication, and entertainment accounts.
Her marketing and advertising experience extends into programs for African-American markets as well. Leylha is a frequent speaker at national and international conferences, where she addresses opportunities that exist within the U.S. Hispanic marketplace. In addition, Leylha publishes tintafresca.us, an on-line Spanish-language book review magazine for consumers and an advisory member of LéaLA, the Los Angeles Spanish-language book fair.