The importance of the U.S. Hispanic market
Editor’s note: Maria L. Parra is principal, Ingenium Research.
For 20 years, my personal and professional journey has focused on understanding Hispanics – not only through leading research projects but also through lived experience. When I moved to the United States from Colombia two decades ago, I was immediately struck by the richness and complexity of Hispanic identity here. It wasn’t just what I gathered from client interviews, focus groups or market studies – it was what I observed at home, raising my own children in a bicultural world where heritage and mainstream America intertwine daily.
This work has revealed the beauty and diversity that characterizes Hispanic life in the U.S. Today, more than ever, it’s crucial to look beyond simple labels and outdated categories to truly understand – and connect with – Hispanic consumers.
A market larger than most nations
To understand the importance of the U.S. Hispanic market, consider this: with over 62 million people, Hispanics in America form a population so large it would be the third-largest country in Latin America – after Brazil and Mexico, and larger than Colombia or Argentina. This size brings immense economic influence, comprising 19% of the U.S. population, $2.5 trillion in buying power, more than 3.3 million entrepreneurs driving innovation and creating jobs, and a young segment transforming media, culture and commerce.
Understanding identity: From race and ethnicity to everyday labels
The conversation starts with clarifying race and ethnicity – terms that are often misunderstood. Ethnicity relates to culture, including nationality, language, traditions and ancestry, while race is about physical traits like skin color or hair texture. Hispanics in the U.S. might identify as Black, white, Indigenous or Mestizo. Generic checkboxes often fail to capture this diversity and require a deeper understanding.
Professionally, “Hispanic” is the most common term, but many consumers prefer “Latino,” or simply mention their country of origin. “Latino” relates to geography (Latin American roots), “Hispanic” pertains to language (Spanish-speaking ancestry) and “Latinx” introduces gender-neutral inclusivity – though everyday usage varies greatly.
Diversity by country, region and generation
Hispanics are not a single group. While Mexicans make up about 60% of the U.S. Hispanic population, the remaining 40% includes a diverse mix of backgrounds – such as Puerto Ricans, Cubans, Dominicans, Salvadorans, Colombians, Venezuelans, Guatemalans and others. This diversity is reflected in regional patterns: Mexican-Americans are predominantly found in the West and Midwest, whereas the East Coast and Florida have a more diverse mix, with large populations from Cuba, Puerto Rico, the Dominican Republic and South and Central America.
Growing groups such as Venezuelans, Dominicans and Guatemalans add diversity, each with their own perspectives, traditions and consumer habits. Regional and cultural differences influence language, traditions, media usage and even brand preferences.
Beyond language: Bicultural realities
Most U.S. Hispanics today are bicultural. While Spanish remains an important part of daily life, most speak English fluently and move easily between both worlds – whether in conversations, celebrations, media or work. Traditional acculturation models, which only focus on language or time spent in the U.S., miss the real story. It’s about how culture is experienced and valued. Many proudly keep their traditions while creating their own uniquely American stories.
Deeper connections: What research must recognize
Instead of focusing only on demographics or language, brands and researchers should embrace cultural affinity – how often people celebrate traditions, connect with their heritage and pass down values to future generations. Family, community and heritage stay central to the Hispanic experience in America. The best brands recognize and honor these bonds, moving beyond stereotypes to build authentic relationships based on respect.
Partnering for success: Expertise matters
To truly understand Hispanics, focus on intentional recruitment and cultural assessments – ask about values, traditions and lived experiences. Collaborate with Hispanic experts, research partners and consultants who represent and respect the community's diversity. Authentic representation and credibility are essential for gaining deeper insights and fostering meaningful engagement.
The urgency of understanding Hispanics
As America rapidly approaches becoming a multicultural majority, understanding Hispanics becomes more vital than ever. Their influence as consumers, entrepreneurs and cultural trendsetters will only grow. For brands, companies and the public sector, embracing this diversity is essential – not just to expand market share but to foster genuine trust and relevance.