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Description

Description

"When shopping for groceries, Hispanics follow a different path compared to the average US consumer. Hispanics’ search for value means they shop at a variety of stores, and traditional supermarkets lose out to mass merchandisers. Convenience and quality are top motivators for choice of retailer, but compared to the average, these factors are less important, indicating that Hispanics will go out of their way for the products they want at the price they’re willing to pay. Although Hispanics differ from the general market, overall, understanding the attitudes and motivations of different segments of Hispanic grocery shoppers can help retailers to better meet Hispanic shoppers’ needs."

- Juan Ruiz, Director of Hispanic Insights

This report will look at the following areas:

  • Focus on the basics
  • Create habits
  • Minimize online delivery fee

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Market overview
          • Figure 1: Retailers Hispanics shop at for center-of-the-store foods, indexed to all, November 2019
        • Video summary – What Hispanics want and why
          • The opportunities
            • Focus on the basics
              • Figure 2: TURF analysis – Reasons for selecting in-store retailer used most often, November 2019
            • Create habits
              • Figure 3: Store brands and name brands as reasons for Hispanics to choose their preferred retailers, by Hispanics’ need for shopping at one or multiple stores, November 2019
            • Minimize online delivery fee
              • Figure 4: Select data points about Hispanics and ordering groceries online, November 2019
            • What it means
            • The Market – What You Need to Know

                • Competitive pressure is hindering growth
                  • Hispanics want different things when shopping for groceries
                    • Overarching characteristics influence why Hispanics follow a different path
                    • Market Size

                      • No real growth in Hispanics’ expenditures on groceries
                        • Figure 5: Hispanic household spending on groceries*, at current prices, 2014-19
                        • Figure 6: Hispanic household spending on groceries*, at inflation-adjusted prices, 2014-19
                    • Market Breakdown

                      • Food and drink account for the majority of grocery sales
                        • Figure 7: Share of Hispanic households’ spending on groceries* – by segment, indexed to all, 2019
                        • Figure 8: Hispanic household spending on groceries*, by segment, at current prices, 2017 and 2019
                      • Food and drink
                        • Figure 9: Hispanic household spending on food and drink*, at current prices, 2014-19
                        • Figure 10: Hispanic household spending on food and drink*, at inflation-adjusted prices, 2014-19
                      • Household goods and cleaning products
                        • Figure 11: Hispanic household spending on household goods and cleaning products*, at current prices, 2014-19
                        • Figure 12: Hispanic household spending on household goods and cleaning products*, at inflation-adjusted prices, 2014-19
                      • HBC products
                        • Figure 13: Total US retail sales and forecast of HBC products*, at current prices, 2014-19
                        • Figure 14: Total US retail sales and forecast of HBC products*, at inflation-adjusted prices, 2014-19
                    • Grocery Shopping Attitudinal Segments

                      • There are four ways Hispanics approach grocery shopping
                        • Figure 15: Hispanics’ grocery shopping attitudinal segments, November 2019
                      • Brand Seekers (29%)
                        • What Brand Seekers want
                          • Why
                            • Figure 16: Hispanic Brand Seekers’ attitudes toward shopping for groceries, indexed to all, November 2019
                          • Who are they?
                              • Figure 17: Profile of Brand Seekers, November 2019
                            • Value Seekers (25%)
                              • What Value Seekers want
                                • Why
                                  • Figure 18: Hispanic Value Seekers’ attitudes toward shopping for groceries, indexed to all, November 2019
                                • Who are they?
                                    • Figure 19: Profile of Value Seekers, November 2019
                                  • Experience Seekers (17%)
                                    • What Experience Seekers want
                                      • Why
                                        • Figure 20: Hispanic Experience Seekers’ attitudes toward shopping for groceries, indexed to all, November 2019
                                      • Who are they?
                                          • Figure 21: Profile of Experience Seekers, November 2019
                                        • Efficiency Seekers (29%)
                                          • What Efficiency Seekers want
                                            • Why
                                              • Figure 22: Hispanic Efficiency Seekers’ attitudes toward shopping for groceries, indexed to all, November 2019
                                            • Who are they?
                                                • Figure 23: Profile of Efficiency Seekers, November 2019
                                            • Market Factors

                                              • Larger household sizes makes grocery shopping more complex
                                                • Figure 24: Average number of people per household, by race and Hispanic origin, 2018
                                                • Figure 25: Households with related children, by race and Hispanic origin of householder, 2018
                                              • Hispanics’ lower median household prompts them to look for value
                                                • Figure 26: Median household income, by race and Hispanic origin of householder, 2018
                                                • Figure 27: Household income distribution, by race and Hispanic origin of householder, 2018
                                              • Hispanics are overrepresented in urban areas
                                                • Figure 28: Hispanics’ share of total population in urban, suburban and rural areas, 2016
                                              • Strong labor market is not translating in higher Hispanic expenditures
                                                • Figure 29: Unemployment rate (seasonally adjusted), by Hispanic origin, January 2007-October 2019
                                                • Figure 30: Median income of Hispanic households, in inflation-adjusted dollars, 2007-18
                                            • What’s Happening – What You Need to Know

                                              • Hispanics know which stores offer the best value
                                                • Hispanics value convenience
                                                  • Hispanics are buying private label
                                                    • Ethnic aisles may not be the answer to drive more Hispanic traffic
                                                    • What’s Happening

                                                      • Price matters
                                                        • The majority of Hispanics know where to find the best prices
                                                          • Figure 31: Hispanics’ likelihood of knowing which stores have the best prices, November 2019
                                                        • Why is it important to highlight lower prices?
                                                          • Figure 32: Hispanics’ likelihood of knowing which stores have the best prices, by age, November 2019
                                                        • What are grocery retailers doing about it?
                                                          • Figure 33: Aldi Facebook posts highlighting deals, October-December 2019
                                                          • Figure 34: Walmart Facebook post highlighting grocery price drops, November-December 2019
                                                        • Convenience matters
                                                          • Hispanics embrace self-checkouts
                                                            • Figure 35: Hispanics’ likelihood of using self-checkouts, November 2019
                                                          • Why is it important to offer self-checkout?
                                                            • Figure 36: Hispanics’ likelihood of using self-checkouts, by grocery shopping attitudinal segments, November 2019
                                                          • What are grocery retailers doing about it?
                                                            • Figure 37: Sam’s Club Facebook posts highlighting easy checkout, November-December 2019
                                                          • Private labels
                                                            • Hispanics drive private label growth
                                                              • Figure 38: Hispanics’ store brand perceived purchase change, indexed to all, November 2018
                                                            • Why is it important to invest in private label?
                                                              • What are grocery retailers doing about it?
                                                              • What Needs Attention

                                                                • Traditional supermarkets are not connecting with Hispanics
                                                                  • The issue with ethnic aisles
                                                                    • Hispanic foods become less relevant with acculturation
                                                                      • Some supermarkets are creating their own versions of Hispanic grocery stores
                                                                        • Figure 39: Instagram posts from Fresco y Mas, November 2019
                                                                    • The Consumer – What You Need to Know

                                                                      • Hispanics don’t mirror average US consumers in store selection
                                                                        • Four key factors drive Hispanic traffic
                                                                          • Shopping at just one store would be possible, but unlikely
                                                                            • Hispanics have a clear idea of what they want at the store
                                                                            • Center of the Store Retailers

                                                                              • Hispanics are a critical target for brands aiming to grow outside traditional channels
                                                                                • Figure 40: Retailers Hispanics shop at for center-of-the-store foods, indexed to all, November 2019
                                                                              • Different retailers attract different segments of Hispanics
                                                                                  • Figure 41: Retailers Hispanics shop at for center-of-the-store foods – any top three net, by attitudinal segments, November 2019
                                                                                • The need to partner with mass merchandisers
                                                                                  • Figure 42: Retailers Hispanics shop at for center-of-the-store foods – Mass merchandisers, by language spoken at home and household income, November 2019
                                                                                • Warehouse clubs’ appeal is limited by household income
                                                                                  • Figure 43: Retailers Hispanics shop at for center-of-the-store foods – Warehouse clubs, by language spoken at home and household income, November 2019
                                                                                • The dollar store opportunity
                                                                                  • Figure 44: Retailers Hispanics shop at for center-of-the-store foods – Dollar store – (top three net), by key demographics, November 2019
                                                                              • Factors Driving Retail Preferences

                                                                                • A combination of factors influence Hispanics’ shopping habits
                                                                                  • Figure 45: Reasons Hispanics choose the retailers they use most often, indexed to all, November 2019
                                                                                • TURF analysis – Key drivers
                                                                                    • Figure 46: TURF Analysis – Reasons for selecting in-store retailer used most often, November 2019
                                                                                    • Figure 47: Table – TURF Analysis – Reasons for selecting in-store retailer used most often, November 2019
                                                                                  • Different attitudinal segments have differing priorities
                                                                                    • Figure 48: Reasons Hispanics choose the retailers they use most often, by attitudinal segments, November 2019
                                                                                  • Hispanics don’t mind going the distance for grocery shopping
                                                                                    • Figure 49: Reasons Hispanics choose the retailers they use most often – Near my home, by age and living location, November 2019
                                                                                  • Store brands are more likely to appeal to Hispanic men
                                                                                    • Figure 50: Reasons Hispanics choose the retailers they use most often – Store brands and name brands, by gender and age, November 2019
                                                                                • Grocery Shopping and Loyalty

                                                                                  • Too many options hinder grocery stores’ loyalty
                                                                                    • Figure 51: Hispanics’ need for shopping at one or multiple stores, November 2019
                                                                                  • Lower prices and habit drive loyalty
                                                                                    • Figure 52: Select reasons Hispanics choose the retailers they use most often , by Hispanics’ need for shopping at one or multiple stores, November 2019
                                                                                  • Price comparison leads to shopping at multiple stores
                                                                                    • Figure 53: Share of Hispanics who compare prices at different retailers, by Hispanics’ need for shopping at one or multiple stores, November 2019
                                                                                  • Store ads influence those who shop at multiple stores
                                                                                    • Figure 54: Influence of store ads in Hispanics’ purchase decisions, by Hispanics’ need for shopping at one or multiple stores, November 2019
                                                                                • Grocery Shopping Behaviors

                                                                                  • Hispanics grocery shopping trips more likely to be on autopilot
                                                                                    • Hispanics do not overthink CPG purchases
                                                                                      • Figure 55: Hispanics’ in-store shopping behaviors – Checking expiration dates and reading product labels, indexed to all, November 2019
                                                                                      • Figure 56: Hispanics’ in-store shopping behaviors – Checking expiration dates and reading product labels, by attitudinal segments, November 2019
                                                                                    • Spanish-dominant Hispanics are more likely to compare prices at different retailers
                                                                                      • Figure 57: Hispanics’ in-store shopping behaviors – Price comparisons, indexed to all, November 2019
                                                                                      • Figure 58: Hispanics in-store shopping behaviors – Price comparisons, by language spoken at home and household income, November 2019
                                                                                  • Appendix – Data Sources and Abbreviations

                                                                                    • Data sources
                                                                                      • Sales data
                                                                                        • Consumer survey data
                                                                                          • Abbreviations and terms
                                                                                            • Abbreviations
                                                                                              • A note about acculturation
                                                                                                • TURF methodology

                                                                                                This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

                                                                                                • Market

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                                                                                                • Consumer

                                                                                                  Mintel's proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

                                                                                                • Brand/Company

                                                                                                  Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

                                                                                                • Data

                                                                                                  Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

                                                                                                Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

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