The purchasing power of the Hispanic population within the United States continues to rise sharply. Just by sheer number alone, people who fall into the Hispanic demographic represent a powerful purchasing group.
Let’s look at some statistics. Of the approximately 300 million people in the United States, the U.S. Census Bureau estimates that about 44.3 million can be classified within the Hispanic demographic. That represents about 15% of the total U.S. population. The City of Los Angeles (California) alone is estimated to have a Hispanic population of around 4.7 million.
And this population is on the rise. From the period July 2005 to July 2006, the Hispanic population within the U.S. grew 3.4%, making Hispanics the fastest-growing minority group in the country. The Census Bureau estimates that the Hispanic population in the U.S. could reach 102.6 million by 2050, which will constitute 24% of the total population.
So where do people who fall within the Hispanic demographic come from? The breakdown is as follows: 64% Mexican origin, 9% Puerto Rico, 3.5% Cuban, 3% El Salvador, 2.7% Dominican Republic, and 17.8% fall into the “other” category, which includes Central American and South American countries, as well as other Hispanic or Latino regions.
So which states have the most Hispanic residents? About 48% of the Hispanic population resides in California or Texas. California is home to about 13.1 million residents and Texas is home to about 8.4 million residents. Many other states also have a sizeable Hispanic population. For example, the following states have a Hispanic population exceeding half a million people: Arizona, Colorado, Florida, Georgia, Illinois, Massachusetts, Nevada, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, and Washington. Moreover, Hispanics are the largest minority group in 22 of the 50 states.
The combined buying power of the Hispanic population is also dramatic. In 2002, revenue generated by Hispanic-owned business reached $222 billion. The median income of Hispanic households was $35,967 in 2005.
These numbers are dramatic and provide impetus for businesses to create and implement strategies that will attract this population to their goods and services.
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