Market Trends: Hispanic-Americans and Food

SUMMARY

Bigger families. More money spent, on average, on food shopping. A higher propensity for buying fresh meats, produce and dairy products. Greateremphasis on "cooking from scratch."  All these factors - plus an estimated collective budget of $55 billion for food spending - makeHispanic-American families a highly sought-after audience for food and beverage marketers and retailers. Many large, mainstream companies (such asKraft, PepsiCo. And Sara Lee) have made concerted efforts to attract Hispanic consumers through Latino-influenced product offerings, bilingualpackaging and targeted promotional efforts. Retailers, too, have gotten in on the act, dedicating more and more shelf and aisle space to authentic andinspired foods and beverages.

Market Trends: Hispanic Americans and Food, a new report from Packaged Facts, offers marketers and retailers alike an in-depth look at the eatingand shopping habits and patterns among Hispanic Americans. It discusses new products and product strategies by "authentic"  and"mainstream"  marketers, examines population and immigration trends among Hispanic Americans and how they influence food consumption,delves into the attitudes and perceptions Hispanics have regarding food purchases and preparation, and addresses marketing strategies that foodmarketers and retailers have adopted to attract Hispanics, who are now the largest minority group in the country .

Introducing Market Trends

Market Trends is the latest product line from Packaged Facts. These timely, compact reports offer insight and analysis into new product trends,demographic shifts, and consumer behaviors that affect the food, beverage and consumer goods industries.

Report Methodology

The information in Market Trends: Hispanic Americans and Food is based on both primary and secondary research. Primary research involved on-siteexamination of the retail milieu, interviews with marketing, public relations and industry analysts within the food and beverage market andconsultants to the industry. Secondary research entailed data-gathering from relevant trade, business, and government sources, including companyliterature. Packaged Facts has derived mass merchandiser sales figures from Information Resources, Inc. (IRI) InfoScan sales-tracking data. Theanalysis of consumer demographics derives from Simmons Market Research Bureau survey data for fall 2002. New product information is gathered vialiterature research, personal interviews and data compiled by ProductScan, a service of Marketing Intelligence Service Ltd.

What You' ll Get in this Report

Market Trends: Hispanic Americans and Food offers unique perspective on the lucrative market for foods and beverages that appeal to HispanicAmericans. No other market research report provides the data, analysis and trends coverage that Market Trends: Hispanic Americans and Food offers. Thereport addresses the following segments:

• Hispanic Population Trends - including immigration patterns, geographical concentrations and insights into country of origin affects tasteand food preferences.
• Hispanic Food Shopping Patterns - including data on food category spending and shopping profiles.
• Hispanic Eating Patterns - including foods and flavors favored, attitudes about packaged and frozen foods and the impact of acculturation.
• Food Marketing Strategies - what mainstream and niche food marketing companies are doing to develop and reposition products that have appealto Hispanic consumers.
• Food Retailing Strategies - what supermarkets and specialty retailers are doing to lure and keep Hispanic shoppers in their stores.
• Trends and Opportunities

Plus, you' ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

Scroll down to see a more detailed outline of the contents of this report.

How You Will Benefit from this Report

If your company is already targeting Hispanic consumers or is considering making the leap into the business, you will find this report invaluable,as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding ofthe factors that influence food and beverage purchasing decisions among Hispanic Americans,

This report will help:

• Marketing Managers identify market opportunities and develop targeted promotion plans for foods and beverages of appeal to HispanicAmericans
• Research and development professionals stay on top of competitor initiatives and explore demand for foods and beverages for this demographicgroup.
• Advertising agencies working with clients in food and beverage industries to help understand the product buyer to develop messages andimages that compel Hispanic consumers to purchase these products.
• Business development executives understand the dynamics of the market and identify possible partnerships.
• Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vitalinformation they need to do their jobs more effectively.

TABLE OF CONTENTS

• National Origins of U.S. Hispanic Population
• Smaller Markets Growing, Too
• Fewer Foreign-Born Hispanics Projected
• Purchasing Power
• Food-Buying Habits
• Playing into Consumer Buying Patterns
• The Four "Fs"
• Family
• Freshness
• Flavor
• Friendliness
• Acculturation Affects Food Choices
• Importance of Pricing
• What They Eat
• Hispanic Food Consumption Patterns Vary by Region
• Frozen out?
• Food Marketer Response
• Authentic vs. Adapted
• From Mainstream to Authentic
• New Life From New Markets
• New Flavors for New Markets
• Smaller Can Be Better
• Promotional Efforts
• Up Close and Personal
• Staying in Touch
• Retailer Response
• Best Practices for Courting Ethnic Consumers
• Retailer-Driven Strategies
• Speaking the Language

Chapter 2: Hispanic Population

• Population Growth
• Table 2-1: U.S. Population Break-down, By Race, As of July 1, 2001
• National Origins of U.S. Hispanic Population
• Figure 2-1: National Origins of U.S. Hispanic Population
• Regional Distribution of U.S. Hispanic Population
• Figure 2-2: Regional Distribution of U.S. Hispanic Population
• Urban Markets Predominate
• Table 2-2: Metropolitan Areas with Largest Hispanic Populations, 2000
• Smaller Markets Growing, Too
• Table 2-3: Second-Tier Metropolitan Areas in the South and Midwest with Relatively Large Hispanic Populations, 2000
• Hispanic Neighborhoods Remain Popular
• Fewer Foreign-Born Hispanics Projected
• The Hispanic Market
• Purchasing Power
• Table 2-4: Growth in Annual Expenditures of Consumer Units: Hispanic vs. non-Hispanic, 1995-1999

Chapter 3: Hispanic Eating/Shopping Patterns, Behaviors

• Table 3-1: Estimated Annual Expenditures for Food and Beverages by Hispanic Consumer Units, 2000
• Playing into Consumer Buying Patterns
• The Four "Fs"
• Family
• Freshness
• Flavor
• Friendliness
• Acculturation Affects Food Choices
• Importance of Pricing
• Hispanic Food Consumption Patterns Vary by Region

Chapter 4: Hispanic Eating Patterns

• What They Eat
• Figure 4-1: Percentage of Households Using Mexican Foods/Ingredients, by Racial/Ethnic Origin
• Figure 4-2: Use of Mexican Foods by Census Region
• Regional Differences Within United States
• Figure 4-3: Most Used Mexican Product Categories by Census Region
• Organic Opportunities
• Table 4-1: Purchase Index Rankings of Organic Shoppers, Based on Racial or Ethnic Background
• Table 4-2: Attitude Towards Purchasing Organics Index, Based on Racial or Ethnic Background
• Frozen Out?
• Table 4-3(a): Frozen Food Purchasing Index, White/African-American/Hispanic Families
• Table 4-3(b): Frozen Food Purchasing Index, White/African-American/Hispanic Families
• Food Expenditures Vary by National Origin
• Hispanic Food and Flavoring Preferences
• Table 4-5: Hispanic Food and Flavoring Preferences based on Area of Origin
• Saying "Si"  to Soy

Chapter 5: How Food Marketers Are Targeting Hispanics

• Hispanic Buying Patterns
• National Origins of U.S. Hispanic Population
• Authentic vs. Adapted
• Pleasing All of the People All of the Time
• From Mainstream to Authentic
• ...And Back
• Recognizing Organic Potential
• Children— A Growing Opportunity
• New Life From New Markets
• New Flavors for New Markets
• Smaller Can Be Better
• Importance of Branding
• Table 5-1: Hispanics Most Likely to Buy Hispanic Brands
• Promotional Efforts
• Breaking New Ground
• Up Close and Personal
• Staying in Touch
• Learning from Others'  Experience

Chapter 6: How Food Retailers Are Targeting Hispanics

• Another Look at the Market
• Table 6-1: Where Hispanics Shop for Groceries
• Best Practices for Courting Ethnic Consumers
• Figure 6-1: Hispanic Shoppers'  Top Criteria for Deciding Where to Shop
• Table 6-2: Top Five Factors Shoppers Consider
• Sampling is Key
• Retailer-Driven Strategies
• Speaking the Language
• Making it Work
• Nash Finch (Avanza stores)
• Carnival Food Stores (Minyard Food Stores)
• Albertson' s
• Gigante
• Fiesta Mart
• Marsh Supermarkets
• Ethnic Store-Within-a-Store
• Lowes Food Stores
• Baking Up Profits from Hispanic Products
• Neighborhood by Neighborhood
• Wal-Mart
• Kmart
• The Online Channel
• MexicanGrocer.com
• Hard-to-Find Items Through MexGrocer.com
• An Ethnic Foods Portal

Chapter 7: Trends & Opportunities

• Growing Market
• Establishing Authenticity
• Meeting Flavor Requirements
• Retailer Opportunities
• Marketing Requirements
• Crossover Appeal