Hispanic Population Inspires Hot & Spicy Flavors.

By 2008, the total number of Hispanics in the U.S. is expected to grow by 15.6%, where they will continue to represent the largest minority group. This rising population holds significant buying power and encourages new product developments in the condiments market, which produced $2.9 billion in sales during 2003. As large consumers of Mexican, Cajun, ketchup, barbecue, and other sauces, Hispanic consumers will undoubtedly influence the diverse condiments market with their preference for hot and spicy tastes.

The U.S. Hispanic population drives the trend towards ethnic spices in Mexican sauce, which remains the largest segment in the market with over 32% share of total sales. Since Hispanics are attaining higher levels of education and earning greater income, they will increasingly contribute to condiment sales. Mintel research indicates that Hispanics in U.S. households now earn between $25,000 and $75,000 (per 2000 census data), and most frequently purchase condiments such as ketchup, averaging 2 or more bottles in a month.

Regional and population changes in the U.S. are key factors in the segmented condiments market. Trends toward smaller U.S. household sizes pose a challenge, as children are vital consumers of condiments like Mexican sauce, ketchup, and mustard. Thus, the tendency for Hispanics to have larger families with children makes them particularly influential consumers. Geographically, Hispanics reside mainly in the South, and help drive the consumption of hot sauce in Southern households. They also purchase high percentages of soy sauce, teriyaki sauce, and salsa in the West. According to Mintel research, Hispanic adults mainly use ketchup, mustard, and barbecue sauce to prepare meals. Other condiment selections growing in popularity include hot sauce, salsa and mesquite flavor barbecue sauce.

Retailers and suppliers that successfully tailor condiment taste, innovation, and packaging towards the Hispanic population will produce appealing sales results. The president of the Association of Hispanic Advertising Agencies states that Hispanics are very interested in branded products and that they respond better to advertised brands because they utilize advertising as a source of information to better assimilate into American culture. Therefore, condiment suppliers can incorporate bilingual packaging in addition to hot and spicy tastes, to establish brand loyalty among the Hispanic population.

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