Food Purchasing Trends Hold Some Surprises.

An increasingly large and young Hispanic population will have a huge impact on food consumption. According to the Food Institute’s just released Demographics of Consumer Food Spending, there are several reasons. First, Hispanic families spend more on food than the overall population – $5,717 versus the average $5,340 for all households. Second, the new study clearly shows that the under-25 group spends a greater proportion of its income on food than any other age bracket. Third, U.S. Hispanic shoppers make an average of 26 grocery trips per month – three times greater than the typical shopper; their $686 billion purchasing power in 2004 is expected to reach $1 trillion by 2010.

“Restaurants also feel the impact of these demographic shifts and will continue to do so based on trends over the last few years, ” advised Irene Kennedy, Director of Research and Education for the Elmwood Park, NJ-based trade association. The new Demographics study indicates Hispanic diners spend 6.10% of their income eating out, an increasing amount – higher than average or than any other group. This might help account for the 160% growth in ethnic casual restaurants between 1998 and 2003.

The unexpected, rapid growth of Hispanics caused major revisions in the Census Bureau’s June 2005 figures, which are incorporated into Demographics. Hispanics accounted for 50% of the nation’s population growth of 2.9 million in a one-year period. Perhaps more important, the greatest source of Hispanic growth is now births and not immigration.

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