Like most Americans, Hispanics are currently trying to find a “new normal” amidst a pandemic, an election year, and renewed conversations around race relations.
With trending COVID-19 hashtags such as #quédateencasa #nuevanormalidad #disciplinaparavolver and #YoMeQuedoEnCasa, Hispanics are talking about the need to stay home during the pandemic and the desire for a new normal, but data suggests that not everyone has had a choice in the matter.
According to public health experts, Hispanics have been especially hit hard by COVID-19, with high percentages of Hispanics contracting the virus likely due to living and work habits. With more low-income jobs, lack of health insurance, the lack of unemployment compensation for undocumented workers, and the close living quarters resulting from multiple families living in the same home, these experts believe many Hispanics have had to continue working during the pandemic. As a result, they have been at a higher risk for contracting COVID-19 and spreading the virus to their families.
It’s no wonder that PewResearch shows that Hispanics have been more concerned than the general public about COVID-19’s impact on finances, personal health, and day-to-day life.
In addition to the challenges of COVID-19, Hispanics are impacted by the recent unrest surrounding racial justice issues with hashtags such as #tuluchaesmilucha #AfroLatinx and #latinosforblacklives. Many Hispanics are standing with the #BlackLivesMatter movement in solidarity, especially since they identify with the struggles of experiencing police brutality and the various other struggles that communities of color have endured in recent years. Additionally, in areas where peaceful protesting has turned to rioting, the LA Times documents Hispanic business owners are facing incredible loss alongside their community.
So what does the future hold for companies who are marketing to Hispanics?
Share of Expenditure Growth
The Collage Group research projects a significant growth in Hispanic Share of Expenditure if Hispanic growth during the COVID-19 recession is similar to the Great Recession. For example, Hispanic share of expenditure could grow from 14% in 2020 to 18% in 2025, which is more than the Asian (7%) and Black (10%) share projections combined.
Due to financial concerns, the Collage Group’s research shows Hispanics are more likely to stretch their dollar further by switching to lower cost products instead of remaining loyal to a favorite brand. For example, Hispanics are also likely to be more cost-conscious about food, vehicle, mobile phone, and toy purchases. If your business falls into a category that struggles to appeal to Hispanics, you may want to consider value-based marketing.
Increased focus on necessities
The Collage Group’s research illustrates how groceries, personal care, and laundry and cleaning supplies rank at the top of Hispanic spending priorities. They’re expected to spend less on cosmetics, phones, toys, and at-home entertainment. Interestingly, the liquor/spirits category is not an area where Hispanics are as willing to reduce spending.
Desire to consume health & wellness news
57% of Hispanics want to watch health and wellness news and 22% of Hispanics are interested in International affairs, according to the Collage Group.
As minority populations and their voices grow throughout this “New Normal,” consider how important it will be to have a voice that resonates with Hispanics. The Hispanic population represents a significant potential for growth: it is expected to reach 106 million people in 2050, which is about double what it was in 2014.
When you envision your long-term marketing plan for the next generation of Hispanics, consider:
- Make sure your marketing is representative of your community. Understanding and celebrating the diversity that exists within the Hispanic market will inject authenticity into your marketing.
- Understand the socio-economic diversity that exists in the Hispanic market. As the Hispanic community in the United States has matured, so has their spending power. The Hispanic market is a very powerful consumer base with a growing high-income base. However, in general, Hispanics will continue to be judicious, value-seeking consumers.
- Emphasis on family. The family unit continues to be important to Hispanics and is core to identity, especially during a time of such systemic upheaval.
- Low-cost/value-based options. Hispanics will continue to be cost-conscious and raise their children accordingly beyond the economic uncertainty of 2020.
- Healthy options. Given the industries that many blue-collar Hispanics tend to work in, health and health insurance will continue to be top of mind for most Hispanic consumers.
- Bilingualism. Children raised in the United States will likely be fluent in English, but they will likely retain an emotional preference for Spanish. It will be important to speak to them in the language they prefer, which may mean communicating in English, Spanish, or Spanglish.
Now is the perfect time to start or grow a relationship with Hispanics and gain a competitive edge as the market continues to grow rapidly. Beyond data, strategy, creative, and personal connections within the Hispanic market, we are poised to help your brand proactively reach this fast growing market. If you would like more insights on Hispanic growth in your market, start a conversation with us.