The U.S. Hispanic economy has crossed a historic milestone. At $4 trillion in GDP, it is now the fifth-largest economy in the world, larger than the economies of India, the UK, and France, according to a report by the Latino Donor Collaborative. Hispanic consumers contribute over $2.5 trillion in annual spending, growing 2.4x faster than non-Hispanics and driving economic momentum in nearly every primary industry. But there's a growing disconnect. Despite this immense economic power, Hispanic consumer spending has slowed sharply in early 2025.
A recent report from CNBC highlights that Hispanic shoppers are cutting back particularly on groceries, non-essentials, and household goods. In-store shopping dropped by more than 11% year-over-year, and major brands like Coca-Cola, Modelo, and Colgate-Palmolive have all reported declines in U.S. sales tied to reduced Hispanic consumer activity.
So, what's going on? It's a wake-up call for marketers, not a case of financial weakness.
The power is there, but trust isn't. A Hispanic Sentiment Study by We Are All Human and Nielsen revealed a startling insight:
- 86% of Hispanics are more likely to buy from brands that connect with them culturally.
- 77% say that language is a vital tool for building that connection.
- 5% of brands are meaningfully reaching this audience—despite Hispanics comprising 20% of the U.S. population
The message is clear: You cannot assume Hispanic consumption will continue without intentional marketing.
Cultural Connection = Commercial Success
Brands that fail to speak the language—literally and culturally—are being left behind. At a time when Hispanic consumers are more selective and value-driven than ever before, companies that don't invest in relevant, respectful, and in-language messaging risk becoming invisible.
It's no longer enough to rely on Hispanic spending power passively. You must actively earn it.
A Shift in Strategy Is No Longer Optional
If your brand is experiencing lower engagement from Hispanic consumers, ask yourself:
Have you created content that speaks directly to Hispanic values and culture? Are you using Spanish—or are you assuming English will suffice? Have you integrated your brand into Hispanic media ecosystems across TV, digital, social, and streaming? If not, you're not just missing an opportunity, you're ignoring one of the most influential consumer segments in the country.
Final Thought: Stop Expecting Results Without Investment
The Hispanic market is growing and evolving. And it's watching closely. If your brand wants to thrive in this new consumer reality, cultural relevance can't be an afterthought. It must be at the core of your strategy. Because you can't unlock the full power of a $4 trillion economy with a 5% effort.
