Marketing Beef to Latino Consumers
By Mary Holz-Clause, AgMRC, Iowa State University.
Updated December 2009.
Marketing beef to the Latino/Hispanic populations provides some unique opportunities. Listed below are some demographic considerations, as well as taste and meat cut preferences for this ethnic group.
Nearly 47 million people in the nation are Hispanic, according to U.S. Census Bureau data. That represents 15 percent of all Americans. About 64 percent of these are of Mexican origin; the rest are primarily from Puerto Rico, Central America and South America. Generally Latino consumers are young. The median age of Latinos in the United States is 28 years, compared to the median age of 37 years for the total U.S. population.
The number of Latinos is expected to grow to nearly 50 million people by 2010. With the growing population size, disposable income is also growing, providing more opportunity to buy higher-priced protein products such as beef.
California had the largest Latino population of any state as of 2008 (13.5 million), followed by Texas (8.9 million). In New Mexico, Latinos comprised the highest proportion of the total population with 891,000 Hispanics (45 percent). California and Texas were next in line; 37 percent of each state's population was Hispanic. (U.S. Census Bureau)
The average Latino household spends $133 per week on groceries, $40 more than the average U.S. household. In 2007, Hispanics purchased about $863 billion of groceries, which is projected to increase to $1.2 trillion by the year 2011. They also shop three times more often than the average U.S. household. Latinos tend to prefer thin cut steaks from the chuck and round. They like to buy in large quantities so family packs are important to these shoppers.
According to Cattlemen’s Beef Board checkoff research, Latinos and African Americans, more than any other ethnic group, get pleasure from preparing meals for family and friends and really enjoy cooking. Family celebrations and the mealtime are important parts of the Latino culture.
In a study commissioned by the Texas Beef Council (TBC) on Latino consumers, it was discovered that women buy and prepare most of the food for the family, but they do not make all the decisions about the meal. According to Jennifer Matison of TBC, the husband plays a key role in food selection. Hispanic families traditionally eat at home six days per week and eat one meal per week at a restaurant.
Beef is considered a status product. As Latinos move to the United States, their influence increases and they are able to afford to buy more beef. According to the Beef Checkoff, Hispanics spend about $326 annually per person on beef, which is 42 percent more than non-Hispanics.
The majority of Latinos (52 percent) identify themselves as bilingual and 29 percent say English is their primary language. However, if you decide to market to a Latino population, you may want to learn some Spanish or hire Spanish-speaking assistance. The best way to capture a share of the Latino market is to approach it the same way you would any other target market. Sit down and devise a marketing plan. Look for networking groups. You can join a Latino Chamber of Commerce even if you are not Latino. Advertise in the local media reaching the Latino market.
Sources
Beef marketing to Hispanics is heating up, Beef magazine, 2008.
Hispanic Consumer Profile New York Tri-State Area, Agriculture and Agri-Food Canada, 2007.
The Hispanic Market in the U.S. - Opportunities and Challenges for the Food Industry, Cornell University, 2006.
Hispanic Merchandising Tips, Beef Retail Marketing.
Hispanic Marketing, Beef Retail Marketing, 2007
The Latest Data on Hispanic America, Hispanic Trends.com.
Minority Links, U.S. Census Bureau - Provides quick links to the latest data on racial and ethnic populations in the United States.
The Multicultural Economy 2008 (also called Buying Power 2008), Selig Center for Economic Growth, University of Georgia.
National Cattlemen’s Beef Association
Reaching The Hispanic Market, rhondaonline.com, 2006.
Texas Beef Council
U.S. Demographics are Changing… Are Your Marketing Plans Ready?, Nielsen Company, March 10, 2010 - Hispanic shoppers tend to spend more on food consumed at home.
U.S. Hispanic Population Surpasses 45 Million, Now 15 Percent of Total, U.S. Census Bureau, 2008 - Latinos remained the largest and fastest-growing minority group.
Developed May 2006 and links checked December 2009.

