Hispanic Purchasing Power is world’s 9th biggest economy
The nation’s largest minority group controlled $686 billion in spending in 2004, the University of Georgia’s Selig Center for Economic Growth concluded, and the Hispanic purchasing power comprises the world’s ninth biggest economy. It’s larger than the GNP of Brazil, Spain or Mexico, reported the Hispanic Association on Corporate Responsibility. Hispanic purchasing power is projected to reach as much as $1 trillion by next year (2010).
The main drivers of the surge in Hispanic consumer influence are education levels, labor force composition, household characteristics and accumulation of wealth.
Advertising expenditures aimed at U.S. Hispanics have grown while the overall ad market has slowed down. From 2000-2004, Latino-directed budgets from the top 50 advertisers rose from $658 million to $1.23 billion, or 87%. Major players such as Procter & Gamble, General Motors, McDonald’s and Coca-Cola have continually increased the amount they spend to reach this coveted market, which is becoming more desirable in terms of sheer numbers and economic clout.
• U.S. Hispanic purchasing power posted a compound annual growth rate of 7.7%
• Higher paying managerial and professional jobs are the fastest-growing occupational categories for Hispanics
• California and Texas account for more than 34 percent of all Hispanic purchasing power and nearly half of the entire U.S. Hispanic population