For many, summer is the perfect time to cool off with an ice cold beer. In 2014 alone, the total consumer spending for beer was over $60 billion. Hispanics represent 14% of that, and they’re fueling the growth.
A recent IHS Global Insights study shows that through 2019 Hispanic beer spending is projected to grow 31% compared to only 17% for non-Hispanics.
Let’s take a look at some of the trends in Hispanic beer consumption. Imports are a draw. According to Simmons data, 80% of Hispanics drink imported beers vs. 57% of non-Hispanics.
A Mintel Group report also shows that Hispanics are 63% more likely than non-Hispanics to be more adventurous when it comes to beer choices. From 2011 to 2014, Hispanic beer consumers grew far more rapidly than non-Hispanics across craft, imported, low-calorie and domestic. Take craft beer as an example. It has become increasingly popular, especially among younger Hispanics — 50% of Hispanic craft beer drinkers are millennials 21-34 (vs. 33% in the non-Hispanic population).
In addition, beer plays an important role in Hispanics’ dining out experience. At the recent FARE Conference (Foodservice at Retail Exchange), we heard Donna Hood Crecca of Technomic say that in the food service industry “the type of adult beverages offered is a huge decision on where consumers are going to dine.” According to our 2014 Casual Dining Restaurants study, Hispanics are more likely to be visiting during the happy hour and late night day-parts and more likely than non-Hispanics to be ordering alcoholic beverages, and especially beer.
Given these trends, it’s no wonder beer brands are increasingly focused on Hispanic consumers’ growing spending in the category. Investment on Spanish-language TV and radio has grown by over 75% since 2010, while English-language TV and radio has only grown by 6%. Now, that deserves a toast.