Hispanics Display Brand Loyalty in Key CPG Categories

April 19, 2012

This article is included in these additional categories:

Analytics, Automated & MarTech | Brand Metrics | CPG & FMCG | Data-driven | Food & Restaurants | Hispanic | Radio | Retail & E-Commerce

nielsen-hispanics-brand-loyalty-april2012.jpgHispanics are as likely as the general market to buy name brands and private labels in all CPG categories, but their brand loyalty overindexes in 3 categories with significant consumption, finds Nielsen [download page] in an April 2012 report. The most significant spending difference is in hair care, where Hispanic buying households annually spend on average 43% more on name brands than the general market ($55 vs. $39), while spending a comparable amount on private label products ($7). For baby products, Hispanic households average 15% more spend per year than the general market for name brands ($26 vs. $23), and 10% more on private label (~$6). For health and beauty products they spend 10% more on name brands ($326 vs. $297) and 9% less on private label ($69 vs. $75).

Dried Vegetables and Grains Top Product Category

Looking at the top 10 Hispanic product categories, Nielsen finds that Hispanic households overindex the average US household in spending most for dried vegetables and grains (221). There was a large drop-off to the other categories in which they overindexed: hair care (154), shortening oil (152), baby food (150), and women’s fragrances (149).

Grooming aids and disposable diapers took the next spots outside the top 5, both at 144, followed by family planning and photographic supplies, both at 142. Baby needs rounded out the top 10 at 137.

Hispanics Make Less Shopping Trips, but Spend More

Data from Nielsen’s “State of the Hispanic Consumer” shows that Hispanic retail consumption patterns are relatively different from those of other US consumers. While white non-Hispanic Americans make on average 149 shopping trips per household across all retail channels, Hispanics who prefer Spanish make 143 trips, and Hispanics who prefer English make 142. The Hispanic market makes these trips count, though: Hispanics who prefer Spanish spend on average $52 per trip, while those who prefer English spend on average $51 per trip. By contrast, white non-Hispanic Americans spend on average $47 per trip.

The combination of these findings shows that Hispanics who prefer Spanish spend on average 6.2% more across retail categories than non-white Hispanics.

Hispanics Visit QSRs More Often, Though

Although Hispanics make less retail trips than white non-Hispanics, they are more likely to be frequent visitors of quick service restaurants (QSRs), finds Univision in a survey released in April 2012. The study discovered that Hispanics visit QSRs an average of more than 10 times per 30-day period, compared to about 7 times per month for white non-Hispanics. And Latino millennials are even more frequent visitors, at 12 times a month (compared to 8 times per month for non-Hispanics).

QSR Visits a Social Experience

Data from Univision’s “QSR Landscape Study” finds that behind the Hispanic QSR visit is a desire for a social experience. Hispanics are more likely than white non-Hispanics to say they visit a QSR to spend time with family (44% vs. 20%), treat the children (30% vs. 16%), and spend time with friends (21% vs. 10%).

Indeed, they are more likely to bring children aged 18 or younger along (34% vs. 25%), and more likely to bring friends (25% vs. 18%). On average, they have 2.9 people in their party, compared to 2.1 for non-Hispanics.

Hispanics Value Beverages

According to the Univision study, Hispanics are almost 20% more likely than non-Hispanics to order a beverage with their meals at a QSR (93% vs. 78%). Interestingly, on a related note, the Nielsen report finds that compounded annual growth rate (CAGR) percentages in projected beverage sales (for 2010 to 2015) are much higher for Hispanics than non-Hispanics. For example, the 2010-2015 CAGR for tea is 9.5% for Hispanics, compared to 2.4% for non-Hispanics. Other discrepancies in CAGR rate for beverage sales occur for non-carbonated drinks (6.1% vs. 0%), spirits/wine (6% vs. 3%), coffee (6.6% vs. 2.7%), milk (-3.3% vs. -7.6%), and juice (3.6%).

About the Data: The Univision study was fielded by Burke, Inc., and consisted of interviews of 1,250 US and foreign-born Hispanics, and 1,250 non-Hispanic adults who are patrons of quick service restaurants.

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