Understanding and Connecting with Latino Consumers: Insights and Trends

In today’s highly segmented marketing world, it’s critical to recognize and respect the diversity of consumer groups. Among these, the Latino community in the United States represents a dynamic and fast-growing population with unique values, behaviors and preferences. Understanding Latino consumer trends and applying multicultural marketing strategies is key for any brand aiming to create meaningful connections with this vital demographic.

Here at Designsensory, we’ve been working with Centro Hispano, an organization with the mission to develop effective, relevant and culturally aware programming and help Greater Knoxville understand the presence and contributions of Latino families in East Tennessee, to create more impactful and resonate marketing campaigns. 

See what we’ve learned in conversation with the organization and some additional thought starters for your next campaign for a Latino audience.

The Increasing Buying Power of Latino Consumers

As the Latino population in the U.S. continues to grow, so does their buying power. In 2023, Latino buying power reached an estimated $2.0 trillion; in 2024, it is expected to surpass $2.3 trillion. This increase is driven by population growth, rising educational attainment and greater participation in the workforce. For marketers, these figures highlight the importance of investing in Latino market segmentation to develop strategies that resonate with this audience.

Building Cultural Connections and Representation

Cultural respect and authenticity are essential when marketing to the Latino community. Latinos often feel underrepresented or misrepresented in advertising, so building trust requires more than just translating content into Spanish. Brands must go deeper by ensuring Latino representation in advertising that is genuine and reflective of the diverse experiences within the Latino community.

Key Facts About the U.S. Hispanic Population (Pew Research)

Here are 10 facts about the U.S. Hispanic population, its origin groups and how those groups differ from one another, dispelling some common myths:

• Eight Hispanic origin groups have at least 1 million people living in the U.S. By the beginning of 2022, the five largest Hispanic populations in the U.S. by origin group were Mexicans (37.2 million), Puerto Ricans (5.8 million), Salvadorans (2.5 million), Dominicans (2.4 million) and Cubans (2.4 million). The other three origin groups with populations over 1 million were Guatemalans (1.8 million), Colombians (1.4 million) and Hondurans (1.1 million). Venezuelans, Dominicans and Guatemalans are the fastest-growing Hispanic origin groups.
  
• The share of Hispanics in the U.S. who speak English proficiently has increased. In 2021, 72% of U.S. Hispanics ages 5 and older either spoke only English at home or spoke English very well. The share of U.S.-born Hispanics who were proficient grew from 88% to 91%, and the share among immigrant Hispanics grew from 32% to 38%. This is largely driven by the growing share of U.S.-born Hispanics who grew up in households where only English was spoken. The increase in proficiency is seen with each new generational cohort. (Pew Research).
  
• Immigrants are a declining share of the U.S. Hispanic population. U.S. births to Hispanic parents have outpaced the arrival of new immigrants. As a result, the U.S.-born Hispanic population has grown by more than 11 million, while the immigrant population has grown by just over 1.5 million.
  
• A significant majority of U.S. Hispanics are U.S. citizens. More than 80% are U.S. citizens, including people born in the U.S. and its territories (including Puerto Rico), people born abroad to American parents and immigrants who have become U.S. citizens through naturalization.
  
• Most Hispanic immigrants have lived in the U.S. for at least a decade. Nearly four in five Hispanic immigrants have lived in the U.S. for more than 10 years.
  
• The makeup of the U.S. Hispanic population varies widely across major metropolitan areas. Mexicans make up 60% of U.S. Hispanics overall, but no other origin group makes up even 10%. These shares differ dramatically in specific metro areas.
  
• The U.S. Hispanic population is aging but remains younger than Americans overall. The median age of U.S. Hispanics is about 30, compared to 37.8 for the overall U.S. population. The median age of U.S.-born Hispanics is just 21 years, compared with 44.5 among immigrant Hispanics.
  
• The share of U.S. Hispanic adults with a bachelor’s degree is growing. In 2021, one in five Hispanics aged 25 and older had a bachelor’s degree or higher, compared to 38% of the overall U.S. population. This number continues to grow.
  
• Household incomes vary widely among Hispanic groups. The median household income for Hispanics in the U.S. in 2021 was $59,000, below the overall U.S. median of $67,800.
  
• Homeownership rates are rising among Hispanic households. Hispanic homeownership in the U.S. increased slightly from 47% in 2010 to 51% in 2021. However, this rate still trails the overall U.S. homeownership rate of 65% in both years.

The Economic Impact of the Latino Market

Latino Americans are a driving force behind many key sectors of the U.S. economy. They represent a growing share of entrepreneurs, with 4.7 million Latino-owned businesses contributing billions in revenue and creating millions of jobs. Latinos also make up a significant portion of the U.S. labor force, particularly in industries such as construction, healthcare and service sectors, where their participation is essential to maintaining economic productivity.

Additionally, the rise in Latino homeownership has supported the real estate market and related industries, further underscoring the economic influence of this demographic. Again, with their buying power expected to reach $2.3 trillion by 2024, the contributions of Latinos to the U.S. economy will only continue to grow.

Multicultural Marketing Strategies: Building Trust and Inclusivity

To connect with Latino consumers effectively, brands must move beyond surface-level marketing tactics. Developing a genuine connection requires strategies that demonstrate respect, inclusivity and cultural understanding. Some effective approaches include:

• Bilingual Communications: Hire bilingual staff and create bilingual content for websites, apps and customer support to ensure that your brand speaks directly to Latino consumers in a way that feels natural and welcoming.
  
• Representation in Advertising: Ensure Latino representation in advertising by including authentic portrayals of Latino culture and experiences, rather than superficial or stereotypical portrayals, to build trust.
  
• Family-Centered Messaging: For many Latinos, family is a central value, and incorporating family-oriented messaging can help create deeper emotional connections.
  
• Localizing Content: Latino consumers come from a variety of backgrounds and origins. Tailoring content based on regional dialects and cultural practices ensures that marketing efforts feel personalized and genuine. Don’t assume that one approach will work for all Latino audiences, even within a particular subgroup.

By understanding the nuances of Latino consumer behavior, and focusing on multicultural marketing strategies that celebrate diversity, brands can build long-term relationships with Latino consumers and foster loyalty, ensuring success in this dynamic and fast-growing market.