Hispanic Market Holds Potential for Beef Industry

Hispanics represent a growing market and could very likely affect future demand for beef in the U.S., according to a recent checkoff-funded report.  The report addresses a major beef industry goal of increasing consumer demand for beef another six percent by 2004.

The report’s findings, which address Hispanic demographics, behavior and attitudes, come primarily from the U.S. Census Bureau and a 2001 study called “Packaged Facts Market Profile: The U.S. Hispanic Market.”  That study was purchased, and the report produced, on behalf of the Cattlemen’s Beef Board and state beef councils by the National Cattlemen’s Beef Association (NCBA).

According to the report, the Hispanic population is expected to grow by 202 percent from 2000 to 2050, and is projected to grow by more than 11 million from 2000 to 2010.  By comparison, Asian and Black ethnic groups are expected to grow less than 4 million each, and the White, non-Hispanic population is expected to increase by only 5 million.  By some estimates Hispanics will soon become the largest minority group in the U.S.

Hispanics also have very different demographic characteristics and require different marketing messages, the report stated.  The group is younger, with larger households, than other markets.  They also make less money and are more likely than the general population to have a female-headed household.  Nearly one-half of the Hispanic population is under the age of 25.

The research found that the Hispanic population is highly concentrated, and therefore easily reached.  One-half of all Hispanics in the U.S. today live in either California or Texas.  One quarter of the Hispanic population is located in seven metropolitan areas in California.

Buying power for Hispanic households has increased dramatically and is increasing at a much greater rate than the population in general.  Hispanic households spend 25 percent more for food at-home than non-Hispanics, and significantly more on beef.

Media habits of Hispanics are different, as well.  Hispanics, especially females, regard magazines as their main source of entertainment and enjoy reading ads in magazines.  Radio is also an important source of entertainment, and Hispanics tend to be heavy listeners during the late-night or early morning hours.  U.S. companies spent more than $2 billion in 2000 for advertising targeted to the Hispanic market, concentrating on local and national television and local radio advertising.

“This kind of information is important as we develop our future strategies to increase consumer demand for beef,” said Janet Helm, a beef producer from Van Horn, Tex., and vice-chair of the beef industry’s Consumer Marketing Group.  “Our committees value this kind of information as they evaluate the types of demand-building programs that will have the most impact for cattle producers.”

Beef industry consumer research efforts are funded, in part, by beef producers through the $1-per-head checkoff. These kinds of programs at the national level are managed for the Cattlemen’s Beef Promotion and Research Board and state beef councils by the National Cattlemen’s Beef Association (NCBA). The Cattlemen’s Beef Board is a 110-member board appointed by the Secretary of Agriculture to oversee the collection of the $1-per-head checkoff, certify state beef councils, implement the provisions of the federal order establishing the checkoff and evaluate the effectiveness of checkoff programs.

Producer-directed and consumer-focused, NCBA is the trade association of America’s cattle farmers and ranchers, and the marketing organization for the largest segment of the nation’s food and fiber industry.