With Latinos contributing $3.2 trillion to the U.S. economy and driving the majority of workforce and business growth, companies that actively engage this market are making a strategic business decision focused on growth. Forward-thinking businesses are not just increasing market share—they’re securing long-term success by building trust and loyalty with Latino consumers.
The Latino consumer market: A powerhouse for business growth
If the U.S. Latino market were a standalone economy, it would rank as the fifth-largest in the world. Today, Latinos make up nearly 20% of the U.S. population, and by 2050, they are projected to reach 30%. Even more compelling, Latinos are fueling overall consumer spending, driving nearly 80% of net new businesses, and contributing $2.8 trillion in GDP annually.
Ignoring this market isn’t just a missed opportunity—it’s a costly mistake.
Why successful businesses strategically invest in the Latino market
Successful companies recognize that targeting specific customer segments leads to better engagement and higher ROI. The Latino market is no different. Companies that invest in culturally relevant marketing and product strategies see a direct impact:
- Brands incorporating Spanish-language advertising see higher ad effectiveness among bilingual consumers, according to a Nielsen study.
- Latinos are 60% more likely to buy from brands that authentically represent their culture, according to a study by Bain & Company.
- Latinos are willing pay an average of 18% more for products and services that cater specifically to them, according to a study by McKinsey & Company.
The message is clear: Companies that tailor their marketing and product strategies to Latino consumers are gaining a competitive advantage and driving significant business growth.
Financial services companies growing with the Latino market
Despite the significant economic power of the Latino market, many financial institutions have yet to fully capitalize on this opportunity. However, some well-known brands are setting the standard by offering culturally relevant products, bilingual services, and community-driven outreach:
- Bank of America: Provides Spanish-language online banking, homeownership programs, and financial literacy campaigns tailored to Latino consumers.
- State Farm: Employs bilingual agents and sponsors Latino-focused events.
- Chase Bank: Invests in Latino entrepreneurs through grants, small business loans, and culturally relevant business programs.
These financial services companies recognize that Latino consumers seek financial services that not only meet their practical needs but also reflect their cultural values, language preferences, and long-term financial aspirations.
Latino consumers are diverse—one-size marketing doesn’t work
One of the biggest mistakes businesses make is treating Latinos as a single, monolithic group. The reality is that the Latino market is highly diverse, segmented by various attributes, including:
- Nationality (Mexican, Guatemalan, Puerto Rican, etc.)
- Language preference (Spanish-dominant, bilingual, English-dominant)
- Generation (first, second, third)
- Geography (California, Texas, Florida, Midwest, etc.)
- Socioeconomic status
Companies that succeed in their Latino growth strategies take the time to define their audience carefully. This ensures that marketing efforts are not just reaching Latinos, but resonating with the right Latino consumers for their brand.
Latino consumers seek more than just Spanish translations—they want businesses to genuinely understand their cultural values and preferences. Companies that excel in this market:
- Craft marketing messages that are tailored to resonate with specific sub-segments.
- Provide bilingual service and tailored products designed to meet cultural and language expectations for Spanish-speaking and even bilingual speakers.
- Utilize mobile and social media platforms, as Latinos are highly engaged digital consumers.
Brands winning with Latino segmentation
These brands are successfully engaging with specific subsegments of the Latino market:
- Honda: Targets first-time car buyers among Latino families and young professionals, as well as large, multi-generational Latino families that are drawn to the spaciousness and safety features of its vehicles. Targeting happens through bilingual ads, sponsorships of cultural events and marketing that highlights themes of family and community.
- Sprint/T-Mobile: Targets tech-savvy young Latino professionals who value connectivity, flexibility and digital solutions. They engage this subsegment through social media and digital channels.
- McDonald’s: Focuses on younger Latinos (Millennials and Gen Z) who are highly engaged with digital media, influencers and social causes. They target this group with culturally relevant products or limited-edition menu items and through social media campaigns.
Final takeaway: Latino engagement drives growth
If your business isn’t actively investing in the Latino market, you’re missing out on significant revenue opportunities. Companies that recognize this potential and take proactive steps will lead the way in the years ahead.
Your action items
- Invest time in understanding Latino market segmentation.
- Develop a comprehensive Latino market growth strategy and implement it as a central business strategy, not an afterthought.
- Partner with experts in Latino market strategy to ensure your approach is effective from the start, maximizing your ROI.
The Latino market is not just an emerging opportunity—it’s a critical driver of business growth. Now is the time to act.
