Hispanics and Alcoholic Beverages - US - December 2016

Hispanics and Alcoholic Beverages - US - December 2016

  • Mintel
  • January 2017
  • Alcoholic Beverages
  • 0 pages

Report Description

Hispanics’ expenditures on alcoholic beverages have experienced significant growth over the past five years due to improving economic conditions that allow for increasing expenditures on discretionary items. Despite this, Hispanics’ share of expenditures on alcoholic beverages under index relative to Hispanics’ share of the US population, in part because Hispanics gravitate toward consuming products they are familiar with such as beer and tequila, and lag for the rest. As Hispanics gradually become more sophisticated consumers due to acculturation, the Hispanic market offers a significant upside potential to brands willing to connect with them.

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Table of Contents

OVERVIEW
What you need to know
Definition

EXECUTIVE SUMMARY
Hispanic expenditures on alcoholic beverages expected to double between 2011 and 2021
The issues
Hispanics’ consumption of alcoholic beverages is below average
Figure 1: Hispanics’ consumption of alcoholic beverages, indexed to all, April 2015-June 2016
Not all alcoholic beverages are seen equally
Figure 2: Hispanics’ perceptions of different alcoholic beverages, October 2016
Fun trumps taste
Figure 3: Hispanics’ motivations for consuming alcoholic beverages, indexed to all, October 2016
The opportunities
Alcoholic beverages are “social currency”
Figure 4: Hispanics’ attitudes toward socially drinking alcoholic beverages, October 2016
Understanding which attributes to own
Figure 5: Hispanics’ perception of beer, by level of acculturation, October 2016
Figure 6: Hispanics’ perception of spirits, by level of acculturation, October 2016
Figure 7: Hispanics’ perception of wine, by level of acculturation, October 2016
Placing the product in front of Hispanics
Figure 8: Top locations where Hispanics buy alcoholic beverages, October 2016
What it means

THE MARKET – WHAT YOU NEED TO KNOW
Hispanics spend $22.1 billion on alcoholic beverages
Hispanics gravitate toward biculturalism
Alcoholic beverages are discretionary
Other factors affecting how Hispanics consume alcoholic beverages

MARKET SIZE AND FORECAST
Hispanics’ expenditures on alcoholic beverages show healthy growth
Figure 9: Total expenditures and fan chart forecast of Hispanic consumers on alcoholic beverages, at current prices, 2011-21
Figure 10: Total expenditures and forecast of Hispanic consumers on alcoholic beverages, at current prices, 2011-21

MARKET FACTORS
Hispanic market is young and bicultural
Figure 11: Population by Hispanic origin and generation share, 2017
Low unemployment can give Hispanics confidence to spend
Figure 12: Hispanic unemployment (seasonally adjusted), January 2007-October 2016
Lower median household income can hinder discretionary spending
Median household income for Hispanics significantly below national median
Figure 13: Median household income, by race and Hispanic origin of householder, 2015
Figure 14: Median household income, by race/Hispanic origin of householder, in inflation-adjusted dollars, 2005-15
Figure 15: Household income distribution, by race and Hispanic origin of householder, 2015

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