INDUSTRY ADVICE GGRROOWWTTHH OP OPPPORORTTUUNNIITTIIEESS:: THE HISPANIC FOOD SECTOR THE HISPANIC FOOD SECTOR By Jaime Enrique, Rick, Parra ll indicators point to sustained growth in the U.S. expected to surpass 74 million by 2028, nearly 22% of the total Hispanic food sector. 吀栀e data we will see below population), so does their purchasing power. support this growth and other interesting facts, 吀栀is has important implications for Hispanic-focused grocery but first, I would like to share some empirical retailers and brands. In addition, the popularity of Hispanic food observations that help point to the degree to which continues to increase among non-Hispanic Americans. Athe turnaround is being seen with respect to some 吀栀is is driving changes in consumer buying behavior, and grocery Hispanic food preferences. players are already reacting. I live in South Florida, where the Hispanic culture domains, For example, mainstream grocery stores are increasingly selling and its food is predominant. My wife teaches in a school for Hispanic brands as they seek to broaden their appeal. In addition, children in grades one through eight, where almost all the some Hispanic brands are trying to move away from the ethnic food children bring their lunch. aisle into more mainstream grocery aisles. The Palate of The Shopping Behavior Younger Generation Hispanic consumer shopping behavior revolves around Comenta que desde hace varios años hay debates a veces acaShe multigenerational family dynamics. 吀栀ey prefer foods authentic says that there have been sometimes heated debates about which to their native culture, which means that younger generations are empanadas are the best in Latin American countries for several more familiar with the brands their parents and grandparents use in years. 吀栀e great contenders are Colombian and Argentinean their cooking. As such, brands should focus on highlighting unique empanadas. customs and heritages with colloquial marketing language. Regarding cheese snacks, the 昀椀ght is usually between While they shop at a wider variety of grocery stores than other Venezuelan tequeños and Colombian pan de bono, ethnicities, Hispanic consumers also prefer to buy more traditional although lately, Brazilian pao de queijo has received items and authentic brands at Hispanic grocery stores rather than an honorable mention. conventional grocery stores. The Cuban pastelito de 吀栀is makes it essential for authentic Hispanic brands to target guayaba is the undisputed and gain distribution in Hispanic grocery stores primarily. ruler of desserts. What's more Growing Investments i mpressive 吀栀e Hispanic grocery space is even more fragmented than the is that these conventional one, although some consolidation occurs. Here are preferences some examples of transaction activity: HHG, the parent group of are expressed Cardenas Markets, acquired El Rancho Supermercado in June 2023, by non-Hispanic and El Super/Bodega Latina acquired the Fiesta Mart chain in 2018. children! In addition, consolidation occurs through the growth of the As the Hispanic chain's new stores. population in the Together, growth among Hispanic consumers and the changing U.S. continues American palate provide tremendous growth opportunities for to grow (it is Hispanic food brands, retailers, and potential investors. expected to 7878 JJUULLYY//AAUUGGUUSST 2T 200224 4 AABBAASSTOTO..CCOOMM