Hispanics Buying More Private Label Products
December 15, 2009
A new report from the Arlington, Va.-based Food Marketing Institute (FMI) reports that 37 percent of Hispanic shoppers are buying more private brand products, a trend the institute said is expected to continue in 2010.
According to the report, “Se Habla Isn’t Enough: Private Brands Among Hispanics 2009,” more than seven in 10 Hispanics surveyed (73 percent) agree that “store brands are a great value for the money.” Moreover, 64 percent of Hispanics surveyed agree that “store brands are just as good as national or international brands.”
Patrick Walsh, FMI’s vice president of industry relations and collaboration, called the findings welcome because food plays such as central role in the Hispanic culture.
“This emerging trend has tremendous sales potential for food retailers,” he said.
The most popular private brands (purchased “every time” or “fairly often”) among Hispanics, FMI said, include dairy products (54 percent), paper products (41 percent), carbonated beverages or soda or bottled water (35 percent), cleaning supplies (34 percent) and hot and cold cereals and other breakfast products (34 percent).
FMI said the current U.S. Hispanic population is 45 million, a number the New York-based Synovate market research firm projected to grow to 64 million (one in five Americans) by 2020. Retailers that offer multiple tiers of products, from basic to premium, can market private brands effectively to Hispanics at all income levels, FMI added.
Based on telephone surveys Los Angeles-based New American Dimensions conducted with shoppers in the top 10 U.S. Hispanic markets, the report was sponsored by Marketing Management Inc., a U.S. private brand marketing company headquartered in Fort Worth, Texas. For more information or to order the report, visit http://www.fmi.org/store.