What marketers need to know about the spending habits of affluent Hispanics
U.S. Hispanic consumers continue to grow in numbers. And as predicted, they aren’t shy about flexing their spending muscle. One group in particular, Affluent Hispanics, whose earnings top $100K+ per year, are really tipping the scale. While they currently only represent about 12.2% of Hispanic earners, they punch above their weight as compared to non-Hispanic Affluents when it comes to contributing to overall spending.
In an effort to better understand why that is, we conducted a nationwide study among U.S. Hispanics, zeroing in on four main categories of spending:
- Family activities
- Sporting events
Though the study covered all income levels, the following findings are specifically about Hispanic consumers with a household income of more than $100,000.
In this category, we looked at everything from camping and fishing to gambling and golfing. In many categories (including shopping, cooking, reading books and wine tasting), Affluent Hispanics and non-Hispanics measured out at about the same level of activity. For a few of the activities, such as visiting museums and clipping coupons, non-Hispanics rated higher than Hispanics.
But there were a certain activities where Hispanics outspent their non-Hispanic counterparts, in time and money, such as attending live music events and having gym memberships. Being that Hispanics earning $100K+ a year are on average seven years younger than non-Hispanics in that income bracket, perhaps youth plays a factor here.
Everyone likes to get away, but the study suggests that Affluent Hispanics rank vacationing high on the priority list.
In fact, 23% of affluent Hispanics take five or more vacation each year – compared to just 9% for non-Hispanics. And when it comes to really getting away, 44% of Hispanics travel internationally, 9% more than non-Hispanics. And it’s not just frequency.
Affluent Hispanics tend to also spend more on vacations vs. non-Hispanics. On average, affluent Hispanics spend 29.7% more for a domestic vacation and 25% more for one out of the country. This increase in spending may also be a function of larger family sizes among Hispanics.
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