LOS ANGELES--(BUSINESS WIRE)--By 2016, the Hispanic demographic will comprise 17.8 percent of US residents and, while the nation’s buying power is projected to grow 27.5 percent to $14.7 trillion, the Hispanic population’s buying power is forecast to grow a whopping 48.1 percent to $1.6 trillion. Industry research firm IBISWorld analyzed the Hispanic population’s contribution to numerous industries between 2011 and 2016 and identified the top 10 US industries in which Hispanic market share is growing the fastest.
2011 ($ million)
|Hispanic Market Share 2011 (%)||
Hispanic Market Share
|Absolute Change In Market Share 2011-2016 (%)|
Source: IBISWorld, Census Bureau, Bureau of Labor Statistics, Pew Hispanic Research Center and industry surveys
“Despite difficulties during and following the recession of 2009, buying power among Hispanics continues to escalate steeply,” explained IBISWorld analyst Brian Bueno. “Companies across all sectors are eager to claim a piece of this pie.”
Retail industries are some of the main beneficiaries of growing Hispanic buying power. Hispanics are major purchasers of children’s and infants’ clothing, accounting for about 19.2 percent of industry sales in 2011. Moreover, according to the Bureau of Labor Statistics, Hispanic men spend 7.0 percent more than non-Hispanic men on clothing on a per capita basis. In terms of consumer electronics, Hispanics are 7.0 percent more likely than the general population to own a smartphone, download music online, utilize mobile video, use e-mail and send or receive text messages.
Additionally, Hispanics encompass a quickly-expanding share of the market for automobiles. By 2016, Hispanics will contribute roughly $14.0 billion to the car and automobile manufacturing industry, representing annualized growth of 7.4 percent from 2011 to 2016.
Restaurants across all food types have also benefited from the growing Hispanic population. Social factors, such as the tendency to dine out with the entire family, give this group a substantial 11.4 percent share of the single location full-service restaurants industry.
From 2011 to 2016, Hispanic contribution to the credit card processing and money transferring industries will grow at an annualized rate of 7.2 percent, faster than the industry’s revenue growth. Credit cards and checking and savings accounts are increasingly being opened by the demographic, thanks to major promotional and development efforts by banks.
Hispanics are leading higher-education enrollment growth among racial groups, according to the Pew Research Center. With a large share of the Hispanic population that has yet to enter college age, the group’s contribution to the education sector is projected to grow rapidly over the coming years.
Entertainment providers have long been catering to the Hispanic market, but there is still a lot of room for industries, like sports franchises, to grow. Also, as companies expand their investments in attracting the market, advertising agencies are set to benefit substantially.
Click here to download IBISWorld’s full research report: The Growing Hispanic Population Means Big Business for These 7 Sectors
About IBISWorld, Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit www.ibisworld.com or call 1-800-330-3772.