The Growing Influence of Hispanics in the U.S. Market

Hispanic consumers represent the fastest-growing demographic in the United States, offering immense opportunities for brands that understand their evolving needs. As highlighted by NielsenIQ’s 2024 Hispanic Beauty Consumer report, this group is not only expanding in numbers but also in economic power and cultural influence. Over the generations, the concept of the American Dream has shifted for Hispanics, from the initial aspiration of financial stability and homeownership to the pursuit of education and career advancement. However, as each generation grows, their connection to the American Dream becomes more diluted, with future generations, like the fourth, showing less inclination to identify strongly as Hispanic. Despite these shifts, the Hispanic population remains dynamic and holds considerable sway in the consumer market.

Generational Shifts in Beauty Preferences

In the beauty industry, Hispanics are contributing significantly to growth, particularly among younger generations who are leading the charge in areas like cosmetics and skincare. Hispanics have added over $2 billion to the beauty sector since 2022, with millennials and Gen Z driving the bulk of the spending. Younger Hispanics are more likely to begin their beauty journey with cosmetics, while older generations, such as Gen X, shift their focus to skincare, driven by cultural values around maintaining a youthful appearance. Hair care, however, remains a steadfast priority across generations, especially for Hispanic Baby Boomers, for whom hair is a key symbol of identity and pride.

The In-Store Shopping Preference: A Multisensory Experience

Despite their engagement with beauty trends on platforms like TikTok and Meta, Hispanics are surprisingly less inclined to shop for beauty products online. Instead, they favor in-store shopping, where they can experience the products in a multisensory way. Younger Hispanics tend to prefer retailers like Ulta Beauty and Sephora, which offer a wide variety of products during their early beauty discovery phase. In contrast, older generations turn to drugstores and food retailers, where they find products that align with their more established preferences. Understanding these shopping habits is essential for brands aiming to capture this market.

Cultural Heritage Drives Brand Loyalty 

Cultural heritage plays a pivotal role in the purchasing decisions of Hispanic consumers. Brands that resonate with Hispanic culture and heritage—such as Nivea, Pond’s, and Moco de Gorilla—have shown enduring popularity across generations. These brands connect deeply with Hispanic consumers, not only through their historical use but also by embracing cultural elements in their marketing. For brands seeking to build lasting relationships with Hispanic households, understanding the cultural significance of beauty rituals and offering products that cater to specific needs, like hair care solutions for naturally textured hair, will be crucial to unlocking loyalty and success in this rapidly growing market.