US Hispanics and Shopping for Groceries Market Report 2022

Overview

• What you need to know
• Key issues covered in this Report
• Definitions
• Market context:

Executive Summary

• Top takeaways
• Market overview
  • Figure 1: The Hispanic Grocery Shopper outlook, 2022-27
• Opportunities and challenges
• Traditional supermarkets can better connect with Spanish-speaking Hispanic shoppers
  • Figure 2: Store types shopped at most frequently when purchasing groceries (any rank), by primary language spoken at home, 2022
• There is room for creativity in appealing to Hispanic shoppers
  • Figure 3: Attitudes toward selection when grocery shopping (any agree), US born vs foreign born Hispanic shoppers, 2022
• Most Hispanic consumers take on sole responsibility for grocery shopping. Making it a family affair opens up opportunity for growth
  • Figure 4: Household grocery shopping responsibility, 2022
• Ease, selection and value are the core reasons for Hispanics when choosing where they shop
  • Figure 5: Reasons for shopping at preferred retailers, 2022
• Key consumer insights
• Most Hispanic shoppers rely on multiple stores for their grocery needs
• Hispanic consumers are more reliant on mass merchandisers for their groceries
• There is opportunity to capture share by focusing on fresh foods
• For Hispanic consumers, grocery shopping is viewed more as a joy than a chore
• There is ample demand for more Hispanic/Latino brands at traditional grocery stores
• Online grocery shopping is ripe for growth with Hispanic shoppers

Hispanic Americans by the Numbers

• Hispanic Americans’ population growth exceeds that of the overall population
  • Figure 6: Size of Hispanic population in the US, 2010-21
• The Hispanic population is younger overall
  • Figure 7: Age breakdown of overall and Hispanic population in the US, 2019
• The birth rate among Hispanic Americans is declining
  • Figure 8: US birth rates, overall and Hispanic populations, 2016-20
• Hispanic Americans’ origins are becoming more diverse
  • Figure 9: Breakdown of Hispanic population in the US by country of origin, 2017 vs 2021

Market Factors

• Consumer sentiment reaches its nadir in 2022, portending a recession in 2023
  • Figure 10: Consumer Sentiment Index, 1962-2022
• The pandemic may have waned, but certain impacts persist

Opportunities and Strategies

• Meeting the needs of Hispanics Americans through the lens of the Rights Trend Driver
• Hispanic Americans value diversity as a source for good
• Global foods and flavors represented beyond an “ethnic food aisle” expresses respect for different cultures
• Chef David Chang classifies ethnic food aisles as racist
• Meeting the needs of Hispanics Americans through the lens of the Identity Trend Driver
• Brands that help shoppers connect with one other also connect more deeply with their consumers
• • Figure 11: Lay’s Adobadas Flavored Potato Chips (US), November 2022
• • Figure 12: North Gate Market Instagram post, 2022
• • Figure 13: Fiestamart Instagram post, 2022
• Meeting the needs of Hispanic Americans through the lens of the Value Trend Driver
• Flexibility and adaptability are expressions of value
• Younger Hispanic shoppers claim to be less satisfied with the current selection at grocery stores

Hispanic American Grocery Shoppers: Fast Facts

Grocery Shopping Behaviors

• Nearly all Hispanic Americans shop for groceries
  • Figure 14: Household grocery shopping responsibility, 2022
• Parents – both mothers and fathers – claim sole responsibility
  • Figure 15: Household grocery shopping responsibility, by parental status, 2022
• Hispanic consumers shop for groceries as often as the overall population
  • Figure 16: Frequency of grocery shopping trips, 2022
• Leveraging technology to get products on lists
  • Figure 17: New Scan, bag, Go App I Scan Bag Go FAQs I Kroger, March 2021
• Higher-income consumers shop more frequently
  • Figure 18: Frequency of grocery shopping trips, by household income, 2022
• Most Hispanic consumers rely on more than one store when grocery shopping
  • Figure 19: Number of stores visited during grocery shopping trips, 2022
• Those who speak mainly English at home tend to visit fewer stores
  • Figure 20: Number of stores visited during grocery shopping trips, by language primarily spoken in the home, 2022
• Hispanics are slightly more likely to shop online
  • Figure 21: Channels typically shopped at for groceries, Hispanic shoppers vs shoppers overall, 2022
• Consumers who speak mostly or only Spanish more likely to shop in-store
  • Figure 22: Channels typically shopped at for groceries, by language primarily spoken in the home, 2022

Grocery Shopping by Store Type

• Mass merchandisers are the dominant source for groceries among Hispanic shoppers
  • Figure 23: Store types shopped at most frequently when purchasing groceries (top 3 – NET), 2022
• • Figure 24: Store types shopped at most frequently when purchasing groceries (any rank), 2022
• Preferred language impacts where Hispanic consumers shop
  • Figure 25: Store types shopped at most frequently when purchasing groceries (any rank), by primary language spoken at home, 2022

Reasons for Grocery Shopping at Preferred Retailers

• Location, selection and price matter most when choosing where to shop
  • Figure 26: Reasons for shopping at preferred retailers, 2022
• Loyalty programs are less of a draw for Hispanic shoppers
  • Figure 27: Reasons for shopping at preferred retailers, Hispanic vs shoppers overall, 2022
• US born Hispanic shoppers prove more brand-conscious
  • Figure 28: Reasons for shopping at preferred retailers, Hispanics born in the US vs foreign born, 2022
• Income impacts what matters more or less to Hispanic shoppers
  • Figure 29: Reasons for shopping at preferred retailers, by household income, 2022
• Products that celebrate traditions will appeal
  • Figure 30: Cinco de Mayo Cantaritos Survival Kit Instagram post, 2022

Where Food Categories Are Purchased

• Hispanic shoppers turn more to mass merchandisers for non-perishables
  • Figure 31: Where select food items are purchased, 2022
• • Figure 32: Fiesta Mart Seafood Festival Instagram post, 2022
• Demographics impact who buys what where
  • Figure 33: Where select food items are purchased, by language spoken at home, 2022

Online Grocery Shopping

• There is opportunity to grow online grocery with Hispanic shoppers
  • Figure 34: Behavior toward and interest in grocery shopping online, 2022
• Those born within the US are more prone to on online grocery shopping
  • Figure 35: Behavior toward and interest in grocery shopping online, Hispanics born in the US vs foreign born, 2022
• Cost and quality concerns are the biggest barriers to grocery shopping online
  • Figure 36: Attitudes toward online grocery shopping, 2022
• Enjoyment of online shopping differs between those born within and outside of the US
  • Figure 37: Attitudes toward online grocery shopping (any agree), Hispanics born in the US vs foreign born, 2022
• Interest in buying shelf-stable foods is higher among younger to middle-aged shoppers
  • Figure 38: “I am interested in buying shelf-stable foods online” (any agree), by age, 2022
• Good potential exists to engage fathers
  • Figure 39: Sesame Street: Fathers (Friends Theme Son Parody) I Father’s Day Song, 2022

Attitudes toward Grocery Shopping

• For most Hispanic shoppers, grocery shopping is enjoyable
  • Figure 40: Emotional responses to grocery shopping, 2022
• Enjoyment is more likely to be seen among those born outside the US
  • Figure 41: Emotional responses to grocery shopping (any agree), US born vs foreign born Hispanic shoppers, 2022
• Younger shoppers more likely to find joy in grocery shopping
  • Figure 42: Emotional responses to grocery shopping (any agree), by age, 2022
• Consider multifunctional space to grow engagement
• Among Hispanic shoppers, there is substantial demand for more Hispanic/Latino brands and products
  • Figure 43: Attitudes toward selection when grocery shopping, 2022
• • Figure 44: Emotional responses to grocery shopping (any agree), US born vs foreign born Hispanic shoppers, 2022
• Parents more likely to be keen for traditional grocery stores to carry Hispanic/Latino brands
  • Figure 45: Attitudes toward selection when grocery shopping (any agree), by parental status, 2022
• • Figure 46: Vallarta Supermarkets Instagram post, 2022

Appendix – Data Sources and Abbreviations

• Data sources
• Consumer survey data
• Abbreviations and terms
• Abbreviations