The US packaged foods industry is at a crossroads. Consumer preferences are shifting, economic pressures are real and demographics are evolving rapidly.
In the midst of all this, one segment has emerged as a cornerstone of growth and innovation: Hispanic consumers. Representing roughly 20% of the total US population, Hispanic households are no longer just a demographic to watch – they’re a powerhouse driving a significant portion of the industry’s expansion.
Recent data from industry research firm Circana makes the case clear: Hispanic consumers account for 16% of CPG growth in the US, despite representing 14% of households.
Over the past year, Hispanic households have outpaced their non-Hispanic counterparts in both dollar and unit sales growth. Dollar sales rose 3.5% for Hispanic households versus 2.6% for non-Hispanics, while – even more importantly – unit sales climbed 1.7% compared to a decline of 0.3% for the broader packaged goods market. Much of the growth comes from households earning less than $50,000, which is proof Hispanic consumers are driving results not just through affluence but through sheer volume, loyalty and cultural influence.
For industry executives and other stakeholders, the message is clear: Hispanic consumers are significantly shaping the very trajectory of US packaged foods.
Hispanic consumers bring unique shopping and consumption patterns. They tend to purchase for larger households, favour multi-flavour packs and gravitate toward in-store shopping. Cultural values emphasising family and community heavily influence that behaviour and understanding that is critical for brands hoping to resonate.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataFlavour is another driver. Circana data shows Hispanic consumers are drawn to bold, authentic tastes. This appetite for authenticity creates opportunities for brands to innovate and differentiate. It also explains why Hispanic-inspired products are increasingly appearing in mainstream grocery aisles, not just ethnic markets.
“Crossover consumers” expand the market
Perhaps the most transformative trend is the rise of the “crossover consumer”. These are mainstream shoppers who are embracing Hispanic flavours and products. Brands like Tajín exemplify this shift, expanding from eight categories four years ago to 11 or more today, with dollar sales jumping from $55m to more than $115m in that same period. Hispanic-inspired products are resonating beyond traditional ethnic enclaves, appealing to a broader audience seeking diverse and authentic flavours.
This crossover phenomenon underlines that Hispanic foods are no longer a niche. Rather, they are influencing the tastes and buying habits of the wider US consumer population.
Hispanic consumers are increasingly health-conscious, mirroring broader US trends. For example, Circana notes a growing demand for functional foods, high-protein options, fibre-rich products, gluten-free offerings and reduced-sugar items.
Convenience also matters: ready-to-eat meals, pre-packaged ingredients and easy-to-prepare options are thriving because they fit busy lifestyles while preserving authentic flavours.
This intersection of health, flavour and convenience creates a sweet spot for innovation. Brands that can blend these attributes with authentic Hispanic ingredients are tapping into a market growing faster than the overall US packaged foods sector.
CPG majors are taking notice
The growing influence of Hispanic consumers is prompting significant moves in the packaged foods industry. Major CPG companies are acquiring Hispanic food brands to secure a foothold in this dynamic market.
For example, PepsiCo acquired Siete Foods, a family-owned Hispanic-American company known for healthier, gluten-free snacks, for $1.2bn in 2024. The move reflects PepsiCo’s recognition of Hispanic consumers’ growing purchasing power and the opportunity to expand its portfolio with culturally-relevant and healthier products.
Similarly, Vilore Foods recently bought Tia Lupita Foods, celebrated for clean-label Mexican products, allowing the company to expand into the natural foods segment while catering to Hispanic tastes.
These acquisitions signal a broader trend: mainstream CPG companies are embracing Hispanic brands not only for their cultural authenticity but also for their growth potential. They are investing strategically to reach both Hispanic and crossover consumers, further validating the category’s central role in the industry.
What executives should be thinking about
For executives, the implications are clear. Engaging Hispanic consumers requires a thoughtful, multi-pronged approach.
On products, brands should offer items that combine authentic Hispanic flavours with health-conscious, convenient formats.
There’s wide cultural diversity under the Hispanic label and strategies must reflect those differences
However, products and brand messaging must be tailored to resonate with diverse subgroups within the Hispanic community – Mexican-Americans, Central Americans, Puerto Ricans, Cubans – there’s wide cultural diversity under the Hispanic or Latino label and strategies must reflect those differences.
When looking for listings, sales teams should look to optimise distribution in stores with high Hispanic traffic and ensure visibility in mainstream channels to capture crossover consumers.
In terms of marketing, brands can build trust through events, sponsorships and culturally relevant content to strengthen brand loyalty and advocacy.
Marketing teams should use social platforms to connect with Hispanic consumers and crossover audiences. Share culturally relevant content, recipes and influencer collaborations to build brand awareness, drive trial and strengthen loyalty.
Why Hispanic category matters to CPG
The Hispanic food category is more than a niche; it is a central pillar of growth.
Data from Circana and other sources shows Hispanic households outperform the broader market in both units and dollars. They embrace bold flavours, drive innovation and reshape category expectations.
The crossover consumer trend amplifies this influence, expanding the market beyond traditional ethnic enclaves.
Coupled with major acquisitions by mainstream CPG companies, it’s evident the industry is starting to recognise the Hispanic food category as a driver of growth and a laboratory for innovation. Companies that invest strategically now will position themselves to influence the tastes and shopping behaviours of the wider US market for years to come.
The US packaged food industry is evolving and Hispanic consumers are leading the charge. They’re not just participants in the market. They’re trendsetters, flavour influencers and growth catalysts.
Companies and brands that recognise and respond to this reality will not only meet the demands of today’s Hispanic consumers but will also shape the preferences of the broader US population.
The outlook
Looking ahead, the US Hispanic packaged foods market isn’t just a bright spot in the industry – it’s fast becoming a central pillar of growth and innovation.
Analysts, including myself, project dollar sales for Hispanic households to rise about 5-6% annually over the next three to five years, with unit sales climbing around 1.5-2%, comfortably outpacing the broader US packaged foods market.
These numbers tell part of the story but the real influence of this segment goes far deeper. Hispanic consumers are shaping flavour trends, driving adoption of family-sized and multi-flavour packs and pushing brands to innovate in ways that resonate culturally. They set expectations not just for their own households but increasingly for the broader US consumer population.
This crossover effect is what makes the category so critical. Hispanic foods are a bellwether for the wider market, a testing ground for innovation and a driver of growth that informs everything from NPD to marketing.
The category’s success reflects a unique combination of cultural authenticity, household loyalty and sheer purchasing power, amplified by health-conscious trends and the demand for convenience.
For brands and retailers, the takeaway is clear: ignoring Hispanic consumers is not an option.
