Data from the latest census reveals two population trends which will have a profound impact not only for businesses but for everyone in America – The rapidly growing number of Hispanics in the USA, and the declining number of people per household.
We’ll briefly look at some of the implications for decision makers, politicians and marketers.
The rapidly growing number of Hispanics in the USA.
On a previous article, before the 2010 census data about Hispanics was released, we had predicted that this segment of the population might pass the 50 million mark – and it did, reaching 50.5 million which is 16% of the population making Hispanics the largest minority. It’s remarkable that more than half of population growth in the USA in the first ten years of the 21st century came from the increase in the Latino population.
What’s the difference between Hispanics and Latinos? Both terms can be used interchangeably. However race and ethnicity (Hispanic origin) are separate and distinct concepts. Therefore Hispanics or Latinos can be of any race.
Where do they come from? About three quarters of Latinos come from three countries (63% are Mexican, 9% Puerto Rican, 3.5% Cuban). The rest are from all the other countries in central and South America, and Spain.
Where do they live? More than three quarters of Hispanics live in the West and South. More than half live in just three states (California, Texas and Florida).
Ok. The number of Latinos is growing rapidly, what does that mean to everyone in America? There are important political implications. Apportionment is the process of dividing the 435 seats at the House of Representatives based on population by state. Since the population of Texas and Florida grew significantly they gained more seats, while NY and Ohio lost seats. Hispanics are increasing their influence in who is selected for office.
This is a group which has been neglected by many marketers and politicians, but this must change. At stake is an estimated US Hispanic purchasing power exceeding One Trillion dollars. If measured by purchasing power alone Hispanics living in the US could be the 14th largest consumer economy in the world. The best companies will rethink how they market their products, and how they staff their companies based on these trends.
The declining average number of people per household
There are 113 million households in America with an average 2.6 people per household. Almost a third (28%) of households consists of only one person. People are getting married later in life – if they get married, and divorce rates are alarming. These are some of the reason behind this trend. This segment of the population will buy cars, silverware, clothes and other products and services with a very different mindset than those people living in homes with two or more members. When I moved from NYC to Miami and I was
single, late at night when I went to the super market, could not find a packet with fewer than 6 or 12 Tilapias, or Salmon! Everything was packaged for a family of four or more…
The 2010 census data is showing us how america is evolving. Are you listening?
by: Roberto Ruvalcaba