At the Table with Hispanic Families Across America

Hispanics are changing the face of America –
How can the food industry stay ahead of the curve?

NPD’s latest in-depth demographic examination is a study of Hispanic food consumption patterns in the U.S. “At the Table with Hispanic Families Across America” is a year-long study of consumption patterns by Hispanics in the U.S. It shows the foods consumed by this demographic group – and where they consume them – shifts as Hispanics become more assimilated into the dominant U.S. culture. What follows is a selection of key findings from the report, which have been excerpted especially for NPD Insights readers.

The process of Hispanic acculturation

According to the U.S. Census Bureau, the Hispanic population in the United States reached 41.3 million in 2004 and now represents 14.1% of the total U.S. population – and it’s growing fast. In fact, the Hispanic growth rate is more than three times that of the overall population growth rate – and Hispanics are expected to become an even larger percentage of the population in the years to come (see chart below).

Of course logic dictates that the longer a person lives in a particular country, the more he or she begins to eat the foods dominant in that particular country or culture. That point is borne out by NPD’s study on Hispanic food consumption patterns: As the level of acculturation rises, Hispanics in America consume fewer dishes that are traditional to their native cultures. Their menu repertoire also expands to include more typically “American” foods – and this process begins immediately upon arriving in the U.S.

But there the story just begins. Depending on where Hispanics live in the U.S., acculturation may be more accelerated in areas where they are less numerous (for example, in the “heartland” of the U.S.) or may take significantly longer, sometimes even generations, in highly insulated and densely populated areas (such as inner-cities).

Food manufacturers and restaurants can more effectively market their wares to this highly differentiated group of consumers. They need only gain a better understanding of the acculturation process, and market to the changing needs of this important population segment over time.

Home cooking

As they assimilate into the broader American culture, Hispanics cook from scratch less often and shift toward the consumption of pre-packaged products. Some of the foods eaten more frequently as Hispanics become acculturated are tea, chips, potatoes, pasta, pizza and frozen dinners and entrees. Ingredients not often used traditionally or frequently by Hispanic cooks increasingly find their way into the kitchen repertoire, such as spreadable margarine, bottled salad dressing, butter, mustard and American cheese. Manufacturers who pair their food products with more traditional foods of Hispanic origin may find they tap into this growing market more rapidly as acculturation process takes place.

While convenience and short cuts are not typically sought out by traditional Hispanic cooks, they are generally receptive to convenient products that taste good and that they perceive to be nutritious. That said, flavor and family-pleasing qualities are the Hispanics’ primary attraction to certain foods – and if they are also convenient, so much the better.

Based on the findings of this study, NPD recommends food manufacturers create links between packaged foods and homemade foods by showing Hispanic cooks ways they can make packaged products taste more like home – and save precious time, in the bargain. Manufacturers may accomplish this by suggesting a more convenient form of an already-used food, such as replacing dry frijoles (beans) with those sold in cans, and “spicing up” a packaged product – like soup or macaroni and cheese – with their own spices at home.

Dining out

While more and more Americans are choosing to dine out, Hispanics are still less likely than non-Hispanics to do so. When Hispanics do go to restaurants, they are nearly twice as likely as other restaurant visitors to take their meals home, rather than eat inside the restaurant. That way, they can supplement restaurant foods with seasonings and other foods and beverages that might not be offered in a particular restaurant dining room, and accommodate larger family gatherings than might be possible in a typical restaurant setting.

Hispanics visit restaurants for the same reasons as non-Hispanics (see chart below), so the way to reach this segment of the population does not have to be about changing restaurant offerings. Instead, it can be as simple as communicating its offering in a culturally relevant way, such as communicating a “kid-friendly” value proposition to Hispanic families. In addition, restaurant operators should consider creating links between their menu offerings and foods that are familiar to Hispanics. Offering special condiments, spices or certain vegetables like peppers will allow Hispanics to create a more familiar (and familial) taste.

The preceding information on the U.S. Hispanic market can be helpful in framing strategies for pursuing opportunities represented by the important and growing Hispanic population in the United States. These and many other category-specific insights are detailed more completely in the full report.

For more information, or to purchase a copy of this report, please click here or contact your NPD Foodworld Account Representative.