by Karla Fernandez Parker
Source: www.mediapost.com, March 2023
The average age of the world’s population is getting higher, and the U.S. is no exception. We’ve already seen ominous reports about Social Security at a breaking point starting in 2030 when the last set of baby boomers will turn 65 or retirement age. In the U.S. that means that 20% of Americans will be retirement age! Even more critical to our social systems — Social Security and Medicare — is the fact that in that decade the oldest boomers will be close to 85 years old.
Luckily for the U.S. there is a group who just may solve these economic problems: Latinos. They have a median age of 29.8 versus 38.5 for the rest of the U.S. population. Also, 31% of Latinos are under the age of 18, compared with only 22% for the rest of the U.S.
With Latinos being younger, having larger households, and achieving higher education levels, they will be the workforce that will be spending money on their households, caring for the aging cohort, and paying into the systems that will sorely need the funding.
Fortunately, the Latin Americans flocking to the U.S. to escape the economic uncertainty from their part of the world — namely from Venezuela, Argentina, Bolivia, and Chile — come with high levels of education. Over 40% have bachelor’s degrees, versus just 33% of the U.S. population.
Sales categories that will feel their greatest impact from Latinos will be vehicle sales, appliances, furniture, baby clothes, electronics, sporting goods, restaurants, and retail in general. Smart companies are building brand affinity with Latinos by not treating them as “one big pot” but rather niche markets worthy of targeted approaches.
Brands must remember that the Latino market is so diverse it warrants marketing that addresses the unique needs and aspirations of the cultures that permeate its population. We don’t eat the same, dress the same, or even speak the same. Smart companies that want to tap into this market will need to truly understand the nuances of their target, geography, education, countries of origin, acculturation, and income levels to capture that spending potential.
