Why Brands Can No Longer Afford to Ignore Latinx in America

In 2022, 71% of U.S. Latinx between the ages of 12 and 34 said they felt like brands treated them as an afterthought. Today, the sentiment is even more pronounced: 76% feel this way. It's an odd situation, given the demographic's growing influence on culture and the economy. The University of Georgia’s Selig Center for Economic Growth, for example, forecasts that Hispanic consumers will control 12.1% of the nation's disposable income by 2026, up from 7% in 2000. The U.S. Census Bureau, meanwhile, estimates that around one in four Americans will be Hispanic by 2060. A new report from the Latino Donor Collaborative—a nonprofit organization dedicated to reshaping the perception of Latinx in America—in partnership with market research firm Kantar outlines how brands can take advantage of the opportunity. U.S. Latinx aged 12 through 34, for instance, have a greater affinity for family and social justice than their non-Latinx counterparts. They're also more eager to speak out for what they believe is right, according to the repot, which was backed by corporate sponsors L'Oréal, Colgate-Palmolive, TelevisaUnivision, and Capital One. Today's Latinx youth are also different from older generations. The majority, for example, are born in America. The group is more willing to reject traditional roles and expectations. They're also pursuing higher levels of education, putting them in a better position for generating more income. "They want to make their parents' sacrifices worth it by succeeding," said Ana Valdez, president and CEO of the Latino Donor Collaborative. "They're very driven." Research shows that 62% of U.S. Latinx aged 12 through 34 say owning a business is a priority, compared to just 32% of Latinx aged 35 and older. Despite their ambitions, young U.S. Latinx report facing unique obstacles, too. Some struggle with a lack of access and mentorship to fulfilling their potential. Others feel like brands and the media continue to portray them in a stereotypical manner that lacks nuance. "Latinos react extremely negative to non-authentic content directed at them," Valdez explained. "If you want to know the community, you need the community to be part of your board and C-suite." Not all companies, of course, are ignoring the demographic of shoppers reshaping America. Two years ago, Unilever—the British consumer goods giant behind household brands such as Dove, Knorr, and Hellmann's—debuted a campaign titled "Nos Inspiras Tú" (translation: “You Inspire Us”) during the Billboard Latin Music Awards, which aired on Telemundo. A 30-second spot showing everyday people working, cooking, and playing aired in both Spanish and English. "As a Latino myself, I am proud of the 'Nos Inspiras Tú' commitment—rooted in purpose and accountability—for the largest multicultural segment in the U.S.," Fabian Garcia, former president of Unilever North America, said in a statement. The Latino Donor Collaborative report concludes by stating that U.S. companies hoping to thrive in the future must devise a strategy for connecting with Latinx today. And the imperative has nothing to do with ethics. "We're not in the business of social justice—this is not a DEI (diversity, equity, and inclusion) thing," said Valdez. "This is a business premise."

Data & Insights

Why Brands Can No Longer Afford to Ignore Latinx in America

A new report shows how marketers can connect with the growing cohort

Paul Hiebert

About

Subscriptions

Events

Publications

WORK SMARTER - LEARN, GROW AND BE INSPIRED.

Subscribe today!

Paul Hiebert