The United States has always been a melting pot of cultures, and the Hispanic population is one of the fastest-growing communities in recent years. This growth is exciting news for retailers and manufacturers looking for new ways to tap into this thriving demographic and the delicious world of Latin cuisine. Here’s a snapshot of the growing Latin food & beverage market today:
Trends by the numbers
According to McKinsey & Company, the Hispanic market represents $1.9 trillion in buying power, with an increase of 87% over the last decade. This surge in buying power is not just significant in size, but it is also growing rapidly. From 2010 to 2020, Hispanics’ real consumption grew more than three times faster than that of non-Hispanic consumers. This is a trend that businesses cannot afford to ignore.
The food and beverage industry has been particularly impacted by this growth. In fact, 50% of the growth in the US Food & Beverage industry between 2005 and 2020 is attributed to the Hispanic Market, valued at $21 billion during that time. Latin food has now become the 3rd most popular cuisine in the United States, just after American and Italian cuisines.
This trend isn’t just limited to the United States. Latin cuisine has become increasingly popular worldwide, with more and more restaurants and grocery stores offering Latin-inspired options. According to Statista, the Latin American food market was valued at $25.8 billion in 2020 and is expected to grow at a CAGR of 4.6% from 2021 to 2028.
Businesses need to adapt
As the Hispanic population continues to grow, it’s essential for businesses to understand and cater to their needs. This means offering Latin-inspired products and flavors, as well as marketing strategies that appeal to this demographic. According to YouGov, Hispanics value authenticity and tradition when it comes to food and beverage, so businesses must stay true to the cultural roots of Latin cuisine to appeal to them.
So what does this growth mean for your business? With the Latin food and beverage market thriving and growing so rapidly, there’s never been a better time for your company to engage with this demographic. With $1.9 trillion in buying power and a rapidly growing consumer base, the Latin food and beverage market is undoubtedly here to stay. As more people discover the delicious flavors and rich cultural heritage of Latin cuisine, the demand for Latin-inspired products and flavors will only increase. So why not join the fiesta and tap into this thriving market? Subscribe to the Cocina Sabrosa newsletter to receive the latest industry trends and news. You’ll also find out when registration opens for Cocina Sabrosa Food & Beverage Trade Expo, September 27-28, 2023 in Irving, Texas.