Upscale Latino Market Boasts Substantial Buying Power
There are 2.9 million Latino households with a household income of $75,000 or more, accounting for a fifth of all Latino households, according to the Upscale Latino Consumers in the U.S. report from Packaged Facts.
Latino households with an income ranging from $75,000 to $99,999 equal 10 percent of total Latino households, and those with an income of $100,000 or more represent 11 percent.
Between 2000 and 2010, the number of Upscale Latino households more than doubled, growing three times faster than the number of non-Latino upscale households. The average household income of Upscale Latinos is around $124,000, nearly four times greater than the income of other Latino households.
Upscale Latino households generate 51 percent of the aggregate income of Latino households, with a buying power that reached $543 billion in 2011, according to Packaged Facts estimates. This buying power is projected to reach $680 billion in 2016, representing cumulative growth of 25 percent.
According to David Sprinkle, publisher of Packaged Facts, upscale Latinos make up only 25 percent of adult Latino consumers but account for 66 percent of all Latinos who spent $1,000 or more online in the past year, 54 percent of Latinos who spent $2,000 or more on home improvements in the past 12 months, and more than 40 percent of Latinos who have home mortgages or new car loans.
In addition, upscale Latinos represent 39 percent of Latino adults who like to follow their favorite brand or company on social sites, and 36 percent of those who buy products recommended by a friend on social sites. Upscale Latinos are much more likely to view social sites as a way to tell people about products they like, and more likely to post ratings and reviews for others to read.
Even so, a substantial segment of Upscale Latinos espouse relatively traditional values. For example, upscale Latinos are about as likely as other Latinos to agree that “a woman’s place is in the home” and to be pro-life, and conversely are not significantly more likely than other Latinos to express liberal attitudes about raising children or to believe that marijuana should be legalized.