In the past 20 years the Hispanic population in the US has grown by 78%, accounting for 56% of the total growth of population across all races and ethnicities during that time-frame. On average, Hispanics tend to be younger than other races or ethnic groups in the US, making up about one-quarter of Gen Z, per a recent report [download page] from Claritas. The report not only explores the growth of the Hispanic population but also their income and spending habits.
Some 62.9 million Hispanics currently live in the US. As the second-most populous race/ethnic group in the US, they make up 19% of the total population this year. This is compared to non-Hispanic Whites (59%), non-Hispanic Blacks (12%), non-Hispanic Asian and Pacific Islanders (6%) and those identifying as multi-racial or from other populations (4%).
Unlike the non-Hispanic Whites that make up a noteworthy share of older people in the US (72.3% of Boomers and 79.3% of Silents), Hispanics trend towards the younger population. Indeed, while Hispanics only make up 10.4% of Boomers and 7.7% of Silents, Hispanics account for 23.4% of the total US Millennial population and 25.8% of the total Gen Z population. Of note is that the Gen Z population is already majority-minority, while the Millennial population is close behind.
What Does the Future Hold?
The report forecasts that by 2025 Hispanics are expected to make up one-fifth (20%) of the US population, with their population growing at a rate of 1.3 million each year between 2020 and 2025. While the non-Hispanic White population is expected to decrease by one-quarter of a million each year during this time, the non-Hispanic Black and non-Hispanic Asian and Pacific Islander populations are forecast to grow by about 341,000 and 518,000 per year, respectively.
As such, among the projected 341.1 million Americans in 2025:
- 194.7 will be non-Hispanic White;
- 69.6 will be Hispanic;
- 42.6 will be non-Hispanic Black;
- 22.3 will be non-Hispanic Asian and Pacific Islander; and
- 11.9 will identify as mixed-race or from another population.
Aggregate Household Income Up
In 2017, a similar report found that the aggregate household income for Hispanics was nearing the $1 trillion mark despite the median household income of Hispanics being some 20% lower than the overall median average. This year, the aggregate household income for Hispanics has pushed well past that milestone at $1.3 trillion.
Hispanics and other ethnic groups have been underrepresented when it comes to advertising. A majority of Hispanics do not feel that the advertising industry makes much of an effort to resonate with them, and this recent report shows that marketers and advertisers may not be realizing the benefits of a large potential market. The data shows that the annual aggregate Hispanic household spending is estimated to be $978 billion this year.
One area of spending highlighted by the report is in auto parts. Showing a possible propensity to service their own vehicles, Hispanic households under-indexed when it came to spending on services such as lube & oil changes and motor tune-ups. However, they were found to spend 18% more than average on motor oil and 9% more on coolant, additives, brake and transmission fluids.
The full report can be downloaded here.