By Warc Staff
Upscale Latinos will be responsible for over one third of all Hispanic spending power in 2013, amounting to some $500bn, and are set to become a significant US consumer demographic in the future.
According to a report from AHAA, The Voice of Hispanic Marketing and Nielsen, the research firm, Hispanic consumers earning between $50,000 and $100,000 a year account for 15m households in the US.
Carlos Santiago, president and chief executive of Santiago ROI, a brand strategy company, speaking in an AHAA webcast reported in Hispanic Retail 360, said that total accounted for 29% of all US Hispanic households and 37% of Hispanic spending power.
"This is the most influential segment since the Baby Boomers," he declared, adding that this demographic was forecast to more than double to 35m households by 2050.
These consumers are mostly young and with large families. The AHAA report established that 75% were under the age of 45 and 77% had households with four or more members.
They are also financially aware compared to other consumer cohorts, being 31% more likely than the overall Hispanic population to invest and almost twice as likely as upscale non-Hispanics to establish college funds.
Reny Diaz, director of client engagement at Nielsen, noted that upscale Latinos had arrived in their present position by different routes. He pointed to Florida, where 75% of the segment owned a home and 79% had some college or had graduated college, and compared it to Southern California, where the comparable figures, at 56% and 43% respectively, were much lower.
In terms of geography, upscale Latinos were found evenly distributed across the important Hispanic cities in the US. Some 28% of New York Hispanics fell into this category, with similar figures for Houston (28%), Miami (26%) and Los Angeles (32%).
They were also present in many secondary Latino markets like Washington DC, Salt Lake City, Honolulu and Jacksonville and were becoming more significant in Baltimore, Raleigh, Oklahoma City and Yakima.