Description

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Hispanics and Alcoholic Beverages US market, including the behaviours, preferences and habits of the consumer.

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What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

Hispanics are a critical target for alcoholic beverage brands as they account for almost one in five US consumers and are overrepresented in the coveted 25-44 year old segment. Hispanics don’t follow general market trends in what they drink. Both life stage and culture drive their engagement in drinking. They gravitate toward brands and beverages that connect them to their roots and bicultural nature. Still, alcoholic drinks are discretionary, and COVID-19 impacted the market unevenly. One segment of Hispanics is doing well and embracing alcoholic beverages this season, while others have modified their spending and have put alcoholic beverages at a lower priority.

Expert analysis from a specialist in the field

Written by Juan Ruiz, a leading analyst in the Hispanic Insights sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

COVID-19 disrupted Hispanics’ social lives and – with it – many occasions in which Hispanics consume alcoholic beverages. It also affected their finances, leading to a change in spending priorities. Unless strong habits and positive attitudes toward drinking alcohol were in place before the pandemic, Hispanics might be missing triggers or cues to drink. Hispanics don’t follow the mainstream trends and instead gravitate toward culturally relevant beverages. The brand has significant weight in their choices, and they see it as something that helps them celebrate who they are.
Juan Ruiz
Director of Hispanic Insights

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Definition
          • COVID-19: market context
            • Economic and other assumptions
            • Executive Summary

                • Top takeaways
                  • Market overview
                    • There are four groups of Hispanics that approach drinking differently
                      • Figure 1: Hispanic attitudinal segments toward alcoholic beverages, October 2020
                    • Impact of COVID-19 on Hispanics and alcoholic beverages
                      • Figure 2: Short-, medium- and long-term impact of COVID-19 on Hispanics and alcoholic beverages (in-home), November 2020
                    • Opportunities and challenges
                      • Don’t just market to Hispanic women, inspire them
                        • Figure 3: Hispanics’ alcoholic beverages purchase responsibilities, by gender and age, October 2020
                      • Build a brand that transcends product characteristics
                        • Figure 4: Important factors when purchasing beer, by number of drink types consumed, October 2020
                      • Know what different groups of Hispanics think about your category
                        • Figure 5: Hispanics’ perception of beer, by alcoholic beverages attitudinal segments, October 2020
                      • Create a culturally relevant connection
                        • Figure 6: Corona USA Twitter post, October 2020
                        • Figure 7: Tecate ad – Mexico is in us, July 2020
                    • The Hispanic Market – Key Takeaways

                      • Alcoholic beverage brands need to understand the Hispanic market
                        • Hispanics are still “developing consumers”
                          • COVID-19 moved alcoholic beverages to the “nice-to-have-but-not-crucial” category
                            • Cultural and financial factors drive engagement
                            • Hispanics by the Numbers

                              • The Hispanic market continues to drive US population growth
                                • Figure 8: US population, by race and Hispanic origin, 2015-25
                                • Figure 9: US population distribution across age groups, by Hispanic origin, 2020
                              • Older Hispanics are an emerging target segment
                                • Figure 10: US Hispanic population by age, 2015–25
                              • Hispanics keep an eye on their wallets when shopping for alcoholic beverages
                                • Figure 11: Median US household income, by race and Hispanic origin of householder, 2018
                                • Figure 12: US household income distribution, by race and Hispanic origin of householder, 2018
                            • Hispanics and Alcoholic Beverages at Home – Market Size Estimate

                              • Hispanic households spend an estimated $14.7 billion on alcoholic beverages at home
                                  • Figure 13: Total US retail sales of alcoholic beverages* (in-home), at current prices, by Hispanic origin, 2015-20
                                • Impact of COVID-19 on Hispanics and alcoholic beverages
                                  • COVID-19 changed Hispanics’ priorities
                                    • Figure 14: Changes in spending priorities – Lower priority for alcoholic beverages, by Hispanic origin, April-September 2020
                                    • Figure 15: Short-, medium- and long-term impact of COVID-19 on Hispanics and alcoholic beverages (in-home), November 2020
                                  • Lockdown and re-emergence: worry prompts Hispanics to prepare for the worst
                                    • Figure 16: Hispanics’ changes in spending priorities – Alcoholic beverages, by level worry about exposure to COVID-19, October 2020
                                  • Lockdown and re-emergence: disrupted social lives
                                    • Figure 17: Good Morning America Instagram post about Dos Equis, June 2020
                                    • Figure 18: Impact of COVID-19 to Hispanics’ social lives, by alcoholic beverages attitudinal segments, October 2020
                                  • Recovery: not all are going back to pre-COVID-19 habits
                                    • Figure 19: Hispanics’ attitudes toward alcoholic beverages during COVID-19, by alcoholic beverages attitudinal segments, October 2020
                                    • Figure 20: Hispanics’ attitudes toward alcoholic beverages during COVID-19, by number of drink types consumed, October 2020
                                  • Lessons from the last recession to consider today
                                  • Market Factors

                                    • Unemployment is improving, but challenges persist
                                      • Figure 21: Seasonally adjusted unemployment, total US vs Hispanics, January 2007-October 2020
                                      • Figure 22: Consumer Sentiment Index, January 2007-October 2020
                                    • Country of origin influences Hispanics’ alcohol consumption
                                      • Figure 23: Hispanic population, by country of origin/heritage, 2017
                                    • A focus on health and wellness can prompt Hispanics to limit alcohol consumption
                                      • Figure 24: Hispanics’ 2021 health and wellness goals – Quit/limit drinking alcohol, October 2020
                                    • More states legalized recreational cannabis
                                    • Market Opportunities

                                      • Cultural and financial factors drive consumption
                                        • Figure 25: Mintel Trend Drivers and Pillars – Identity and Value
                                      • Identity
                                        • Figure 26: Number of types of alcoholic beverages Hispanics drink – Past 3 months, by language spoken at home, October 2020
                                        • Figure 27: Number of types of alcoholic beverages Hispanics drink – Past 3 months, by household income, October 2020
                                    • Companies and Brands – Key Takeaways

                                      • Variety, variety, variety
                                        • Beverages with a cultural connection get Hispanics’ attention
                                        • Product Categories and Brands

                                          • Hispanics overindex for drinking everyday alcoholic beverages
                                            • Figure 28: Hispanics’ consumption of alcoholic beverages – Past 3 months, indexed to all, October 2020
                                          • Hispanics and beer
                                            • Figure 29: Brands of imported beer consumed the most, by Hispanic origin and indexed to all, April 2019-June 2020
                                            • Figure 30: Grupo Modelo creative – Modelo, September-November 2020
                                            • Figure 31: Brands of light/low calorie beer consumed the most, by Hispanic origin and indexed to all, April 2019-June 2020
                                          • Hispanics and wine
                                            • Hispanics and spirits
                                              • Figure 32: Brands of tequila consumed the most, by Hispanic origin and indexed to all, April 2019-June 2020
                                              • Figure 33: Brands of vodka consumed the most, by Hispanic origin and indexed to all, April 2019-June 2020
                                              • Figure 34: Brands of Scotch consumed the most, by Hispanic origin and indexed to all, April 2019-June 2020
                                            • Hispanics and RTD alcoholic beverages
                                              • Figure 35: Corona creative – Hard seltzer, November 2020
                                          • The Consumer – Key Takeaways

                                            • There are four ways Hispanics approach alcoholic beverages
                                              • Hispanics who purchase alcoholic beverages for the household take their responsibility seriously
                                                • Culture plays a role in Hispanics’ beer choices
                                                  • When thinking about beer, brand matters
                                                    • Hispanics purchase alcoholic beverages at supermarkets and mass merchandisers
                                                      • There is a lack of consensus on how Hispanics see alcoholic beverages
                                                        • Brands need to be meaningful
                                                          • Social drinking has a life stage and a cultural component
                                                          • Alcoholic Beverages Attitudinal Segmentation

                                                            • Hispanics approach alcoholic beverages in four ways
                                                                • Figure 36: Hispanic attitudinal segments toward alcoholic beverages, October 2020
                                                              • Trend Drinkers (32%)
                                                                • Figure 37: Profile of Trend Drinkers, October 2020
                                                              • Social Drinkers (21%)
                                                                • Figure 38: Profile of Social Drinkers, October 2020
                                                              • Mature Drinkers (19%)
                                                                • Figure 39: Profile of Mature Drinkers, October 2020
                                                              • Unengaged Drinkers (28%)
                                                                • Figure 40: Profile of Unengaged Drinkers, October 2020
                                                            • Alcoholic Beverages Purchase Responsibility

                                                              • Hispanics who take sole responsibility buying alcoholic beverages embrace variety
                                                                • Figure 41: Hispanics’ alcoholic beverages purchase responsibilities, October 2020
                                                                • Figure 42: Hispanics’ attitudes toward alcoholic beverages – Brand, by level of responsibility for purchasing, October 2020
                                                                • Figure 43: Hispanics’ alcoholic beverages purchase responsibilities, by number of drink types consumed, October 2020
                                                              • A significant number of Hispanic women claim sole purchase responsibility
                                                                • Figure 44: Hispanics’ alcoholic beverages purchase responsibilities, by gender and age, October 2020
                                                              • Less affluent Hispanics may choose promotions over value brands
                                                                • Figure 45: Hispanics’ alcoholic beverages purchase responsibilities, by age and household income, October 2020
                                                            • Types of Beer Consumed

                                                              • Hispanics drink beer with a cultural connection
                                                                • Figure 46: Types beer Hispanics consume – Past 3 months, indexed to all, October 2020
                                                              • Craft beer shows potential among bilingual and English dominant Hispanics
                                                                • Figure 47: Select types of beer Hispanics consume – Past 3 months, by language spoken at home, October 2020
                                                              • Light/low calorie beers are not resonating with younger Hispanics
                                                                • Figure 48: Select types of beer Hispanics consume – Past 3 months, by age, October 2020
                                                              • Beer mixed with other beverages has a strong cultural component
                                                                  • Figure 49: Select types of beer Hispanics consume – Past 3 months, by country of origin, October 2020
                                                              • Important Beer Factors

                                                                • Brand trumps other factors
                                                                  • Figure 50: Important factors when purchasing beer, indexed to all, October 2020
                                                                • Factors other than brand are only meaningful to sophisticated drinkers
                                                                  • Figure 51: Important factors when purchasing beer, by number of drink types consumed, October 2020
                                                              • Alcohol Purchase Location

                                                                • Hispanics don’t go out of their way to buy alcoholic beverages
                                                                    • Figure 52: Alcohol purchase locations – Past 3 months, October 2020
                                                                    • Figure 53: TURF Analysis – Alcohol purchase location, October 2020
                                                                    • Figure 54: Table – TURF Analysis – Alcohol purchase location, October 2020
                                                                  • Supermarkets and mass merchandisers appeal to different crowds
                                                                    • Figure 55: Alcohol purchase locations – Past 3 months, by age, October 2020
                                                                    • Figure 56: Alcohol purchase locations – Past 3 months, by language spoken at home, October 2020
                                                                • Drinking Associations

                                                                  • Beer’s experiential attributes explain its broad appeal
                                                                      • Figure 57: Drinking associations, October 2020
                                                                    • Perceptions about categories vary by attitudinal segment
                                                                      • Figure 58: Hispanics’ perception of beer, by alcoholic beverages attitudinal segments, October 2020
                                                                  • Attitudes toward Alcoholic Beverages – Brands

                                                                    • Brand is about belonging
                                                                      • Figure 59: Hispanics’ attitudes toward alcoholic beverages brands, October 2020
                                                                      • Figure 60: Hispanics’ attitudes toward alcoholic beverages brands, by alcoholic beverages attitudinal segments, October 2020
                                                                      • Figure 61: Hispanics’ attitudes toward alcoholic beverages brands, by age, October 2020
                                                                      • Figure 62: Hispanics’ attitudes toward alcoholic beverages brands, by language spoken at home, October 2020
                                                                  • Attitudes toward Alcoholic Beverages – Social Drinking

                                                                    • Social drinking is product of both life stage and culture
                                                                        • Figure 63: Hispanics’ attitudes toward alcoholic beverages – Social influence, October 2020
                                                                        • Figure 64: Hispanics’ attitudes toward alcoholic beverages brands, by alcoholic beverages attitudinal segments, October 2020
                                                                        • Figure 65: Hispanics’ attitudes toward alcoholic beverages brands, by age, October 2020
                                                                        • Figure 66: Hispanics’ attitudes toward alcoholic beverages brands, by language spoken at home, October 2020
                                                                    • Appendix – Data Sources and Abbreviations

                                                                      • Data sources
                                                                        • Sales data
                                                                          • Consumer survey data
                                                                            • Consumer qualitative research
                                                                              • Abbreviations and terms
                                                                                • Abbreviations
                                                                                  • Terms
                                                                                    • A note about acculturation
                                                                                      • TURF methodology
                                                                                      • Appendix – Mintel Trend Drivers

                                                                                          • Figure 67: Mintel Trend Drivers and Pillars

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