Hispanic Demographic Changes

Assuming the demographic changes about Hispanics are accurate, comment on how this shift changes the segmentation in the grocery and the fast food industries. For example, if a grocery store that you visit frequently currently has about 15% of its space dedicated to Hispanics should that be changed now in light of the demographic research? Be sure to use key demographic and lifestyle facts and figures about these markets and their consumers.
The Hispanic population in the U.S. has been growing for the past twenty years. Now the Hispanic-Latino/ non-white group makes it the largest minority in the United States, figures indicate that they account for more than a quarter of the population and that number is growing fast. The challenge is for main-stream grocers to provide a wide variety of foods and brands that attract the “Latino Dollar”. How can the traditional American stores who market to
mainly those who live near business location, make available the kinds of foods and brands that attract the Latino population? The other question is why would they want to in the first place? One reason is that Hispanic foods and beverages were an $8 billion market in 2012, according to consumer research firm Packaged Facts. By 2017, that number may reach $11 billion. (Laboy, S. & J.M. Hirsch, As US demographics change, so does the menu: 17 October, 2013: AP: The Big Story).
The Hispanic population grew faster than expected and accounted for more than half of the nation 's growth over the past decade, with the group’s increase driven by births and immigration. The Census Bureau—in its first nationwide demographic tally from the 2010 headcount—said Thursday the U.S. Hispanic population surged 43%, rising to 50.5 million in 2010 from 35.3 million in 2000. Latinos now constitute 16% of the nation 's total population of 308.7 million.
The Census Bureau has estimated that the non-Hispanic white population would drop to 50.8% of the total population by 2040—then drop to 46.3% by 2050. This demographic transformation—Latinos now account for about one in four people under age 18—holds the potential to shift the political dynamics across the country (Reddy, 2011).
Hispanics have influenced the American palate for decades, but have only recently become a major demand determinant in restaurants and supermarkets. Hispanics spend about 7.7% of their incomes eating at home, compared to 6.0% for non-Hispanics. However, excluding income differences, they also spend 0.9% more than non- Hispanics on food at home.
The average Hispanic spends roughly 38.1% more on eggs every year than the average non-Hispanic.
As supermarkets and grocery stores catch on to this trend, they are scrambling to cater to Hispanic consumers, often through ethnic aisles and food offerings typical of a particular cuisine (e.g. Mexican and Peruvian).
Hispanic grocery stores are also popping up around the country, particularly in the West and Southwest, areas with large Hispanic populations. These stores offer cuisine-specific items and have been a notable development and growth opportunity in the Supermarkets and Grocery Stores industry.
Restaurants across all food types have also benefited from the growing Hispanic population. Social factors, such as the tendency to dine out with the entire family, gives this group a substantial 11.4% share of the Single Location Full-Service Restaurants industry. Growth in the national availability and affordability of ingredients typical of Hispanic cuisines has allowed such restaurants to open across the country, attracting Hispanic and non-Hispanic customers
alike. Fast food restaurants caught onto this trend years ago and have invested large sums in attracting Hispanic consumers. For instance, McDonald’s spent $118 million in Hispanic media in 2010, making it the fifth largest advertiser geared toward the market, behind P&G, Verizon, AT&T and DirecTV. Nine fast food restaurants advertise on Spanish language TV.
Some products are more frequently advertised on Spanish language TV including Domino’s, Burger King, McDonald’s and Sonic’s lunch and dinner menu items.
Similar messaging is used in ads on Spanish and English language TV; however, Spanish language ads more frequently feature physical activity, low fat/low-Cal, and helping the community messages (No Author, 2010).
In conclusion, as population increases, the marketing towards specific groups will also increase. Companies will always capitalize on every aspect of the population and will have to adjust with the current times.

References:

Bueno, B (2011). The Growing Hispanic Population Means Big Business for These 7
Sectors, IBIS World, Special Report August (2011).

Reddy, S (2011) Latinos Fuel Growth in Decade, The Wall Street Journal. Retrieved November 07, 2014, from http://online.wsj.com/article/SB10001424052748704604704576220603247344790.html

Fast Food Targeted Marketing. (2010). Retrieved November 06, 2014, from
www.fastfoodmarketing.org/media/FastFoodFACTS_TargetedMarketing.pdf