Study Says Hispanics Responsible for Significant Growth in Furniture Markets
Furniture World Magazine
Hispanics in the United States, the fastest-growing minority group, are increasingly the major driving force behind revenue growth in many consumer product and service markets, according to The U.S. Hispanic Market, a new report from market research publisher Packaged Facts, a division of MarketResearch.com.
Hispanics were responsible for 15.6% of the growth in aggregate consumer expenditures that occurred between 1998 and 2003, the report noted. Total spending by Hispanic households increased by $140 billion during this period. Looking at specific markets, the report found that, between 1998-2003, Hispanics were responsible for nearly half (48.3%) of the growth in spending on cereals and cereal products and more than one-third (34.6%) of the growth in expenditures for furniture.
Between 1998 and 2003, total expenditures for men's and boys' apparel grew by only $141 million, but Hispanic expenditures increased by $2.2 billion.
Packaged Facts estimates that the buying power of the Hispanic market is currently $766 billion, and will approach $1.1 trillion by 2010.
"Although much has been written about the exploding Hispanic population in the U.S., we're only now starting to appreciate the true impact this growth is having in the marketplace," said Don Montuori, publisher of Packaged Facts. "Hispanics will account for one-sixth of the U.S. population by 2010, and no company can afford to overlook these consumers."
Compared to non-Hispanic consumer units, Hispanics spend a higher percentage of their budgets (1.2% and 1.0%) and slightly more in absolute terms ($403 vs. $401) for furniture. They also spend more on major appliances. Given Hispanics also outspend non-Hispanics significantly in the category of laundry and cleaning supplies ($165 vs. $128).
Simmons data confirm that Latino families are significant players in the major appliance sector in spite of their generally lower average incomes. The percentage of Hispanic and non-Hispanic fathers who say they bought a major appliance within the last 12 months is practically the same (24.2% vs. 25.7%). their large family size.
Now in its 6th edition, The U.S. Hispanic Market analyzes key characteristics of the Hispanic population and assessing the role of Latinos in the American economy. The report examines the consumer dynamics of Latino families and their kids, provides a comprehensive analysis of the Latino family as a consumer unit, and highlights crucial aspects of consumer behavior on the part of Latino parents and their kids in a range of segments that include food at home, fashion and personal care, home furnishings, entertainment choices, eating out, and use of technology and the Internet.
Priced at $3500, this report can be purchased directly from Packaged Facts by clicking http://www.packagedfacts.com/pub/1079261.html. It is also available at MarketResearch.com.