The landscape of the population growth and household income in the United States has taken an immeasurable frontward leap over the last 10 years. The San Jose Group delves deeper into what this could potentially mean for the transformation of the existing landscape in this country between the Hispanic and General market.
Over the last 10 years, according to the U.S. Census Bureau, the population growth has become augmented by 25.5 million people. Today, the total population in this country is 310 million. Research studies demonstrate that the population today has significantly increased to contain a larger Hispanic population.
It’s remarkable to personally reflect upon the Hispanic population growth representation of 51.1 percent or 13 million of the total population increase. It is quite evident by statistics alone to recognize that the Hispanic population has consistently grown and will exponentially escalate to an even larger percentage in the foreseeable future.
When thinking about the transformation in the household income in the U.S. across the General market and Hispanic market, the median income levels in 2000 are divergent from one another. In 2000, the median household income of 45.3 percent of the General market was $55,000, whereas 31 percent of the median household income of the Hispanic market was significantly less at about $50,000.
You may ask yourself, why are the income levels so different? The answer is simple—educational attainment is a major factor in determining an individual’s economic disposition. Thus, an individual’s educational credentials are in fact aligned to the household income the individual will acquire for his or her family.
Presently, about 40 percent of Hispanic households now earn a median income of $50,000 or more compared to the 54 percent of the General market’s median income level of $50,000. As a result of this improvement, consumers will notice that the Hispanic market is in fact closing the gap between them and the General market in spending habits of their disposable income.
It is important to notice that the spending habits & living expenses for a Hispanic household is distinctive compared to the General market. The San Jose Group can provide an estimate as well as an insight into the fact that the living expenses for a Hispanic household to make an everyday purchase can be a total of 15 to 22 percent of their disposable income. This is another indication of Hispanics closing the gap between them and General market.
This fact & trend generates a critical opportunity for businesses to identify and target the 50 million individuals in the Hispanic market. The San Jose Group is well positioned to help its clients and businesses to take advantage of this opportunity.