Hispanic food and beverage market approaches $18 billion

The size of the Hispanic food and beverage market approached $18 billion in 2015. This represented an increase of 4 percent over 2014 and reflected a compound annual growth rate (CAGR) of almost 4 percent between 2011 and 2015, according to Rockville, Md.-based market research firm Packaged Facts in its new report “Hispanic Foods and Beverages in the U.S., 6th Edition.”

The market’s growth has as much to do with Americans expanding their palate to include unique, exotic and authentic flavors as it does with Hispanic consumers representing an increasing portion of the total population or the cohort’s impressive financial clout, Package Facts noted in the report.

“Hispanics are experiencing an increase in purchasing power and, as a result, an increase in their influence on retail grocery offerings and on foodservice offerings,” said David Sprinkle, Packaged Facts’ research director. “But beyond mere purchasing power or even swelling population percentages, the foods and beverages that are part of the Hispanic heritage continue to make inroads into the diets of all American consumers because of a growing interest in and acceptance of new flavors, spices and dining experiences.”

By Packaged Facts’ estimates, Hispanic foods and beverages are clearly a part of the mainstream for at least a third (perhaps as much as half) of the population, and these items are a familiar presence for about another third. The remaining consumers, 20 percent to 30 percent, either have not shown an interest in stepping outside of their comfort zone when it comes to trying new foods or have outright rejected the tastes and textures associated with Hispanic foods, the market research firm stated.

Marketers need to consider doing three things to build sales of their products, according to Packaged Facts:

• Provide those already accepting of Hispanic foods and beverages with new taste experiences, especially those that have the aura of authenticity.
• Find ways to integrate their products into the other trends that the middle group of consumers are concerned with, especially the growing demand for “free from” foods.
• Offer milder, more mainstream versions of their products to the hold-outs, with the goal of getting them to at least try the unknown.

For additional information on the report, including purchasing options, visit Packaged Facts’ website at http://www.packagedfacts.com/Hispanic-Foods-Beverages-10335332.