by Diana Leza Sheehan / founder, principal consultant, PDG Insights
In this new series, we explore the opportunity created for retailers by targeting Latino grocery consumers across the United States.
For context, the Latino population in 2024 reached about 66 million, or about 19.5 percent of the total U.S. population. Spending power among this diverse demographic group has reached more than $3.7 trillion. Annualized income growth among Latinos has outpaced non-Latinos – 4.8 percent compared to 1.8 percent.
This series will highlight the size and opportunity for retailers, unique consumer trends and success stories across each of Shelby Publishing’s five regions.
In this article, we explore the retail ecosystem in the Northeast. While national players dominate some areas within the Northeast, strong regional chains and independents continue to find ways to customize offers and tailor experiences to Latino populations, with a strong focus on those based in the Caribbean and South America.
Latino consumers in Northeast
From Maine to Maryland, and including Washington, D.C., the Northeast accounts for 19 percent of the U.S. population – about 65 million people. However, with 11 states in the region, the potential for growth differs by state.
Latinos in the Northeast are concentrated in New Jersey, New York and Pennsylvania. With 9.5 million Latino consumers in the region, more than 72 percent – or nearly 7 million – live in these three states.
There is a significant population in Berks, Lehigh and Philadelphia counties in Pennsylvania. In New York and New Jersey, most Latino residents live in the New York City metro area or its outskirts.
While those who identify as Mexican American live throughout the Northeast, those of Puerto Rican or Dominican descent are the largest populations within the Latino community. In New Jersey’s Hudson County, there is a strong Cuban population. In addition, Colombians, Ecuadorians and Salvadorans have a strong presence throughout the region.
Given the nuance in country of origin, strategies focused on Mexicans in other parts of the country must be adjusted to reflect different backgrounds, cultures and cuisines.
[RELATED: Opportunity For Independent Grocers Abounds In Urban, Diverse Northeast]
Authentic and intentional independents
Unlike the national chains dominating in other parts of the U.S., the Northeast boasts a thriving network of regional players that target Latino consumers in markets where it makes sense.
Led by its ShopRite and Price Rite banners, Wakefern Food Corp. has more than 350 stores across New Jersey and New York. They offer a robust product assortment in center store and perimeter categories tailored to various communities.
Looking at smaller independent chains, Plainfield, New Jersey-based Supremo Food Market has 14 stores in New Jersey and eastern New York, while City Fresh Markets boasts 20 stores in the New York metro area.
Both focus on produce and meat assortment tailored to Latino consumers, as well as a strong mix of imported goods from Latin America and the Caribbean combined with national brands. City Fresh Markets’ circular is bilingual – sending a clear message to consumers that it is here to help.
Food Bazaar has some 30 stores in Connecticut, New Jersey and New York. The company targets underserved neighborhoods, providing the flavors and cuisines found in residents’ native countries.
Beyond chains, there are many family-owned independent grocers serving Latinos in each market throughout the Northeast. From small bodegas in the heart of New York City neighborhoods to traditional supermarkets throughout the region, assortment, customer service and prepared food offerings reflect the various cuisines found throughout Caribbean and Latin America countries.
Exploring critical consumer themes
In looking at key consumer trends among Latino consumers, we see similarities to the average shopper. Value is still a critical part in decision-making – both for the brands bought and retailers chosen.
Natural and organic products continue to be a growth driver across segments, and the role of technology throughout the shopper journey evolves as new technologies change how retailers and brands engage with consumers.
There are some attitudes and perceptions that stand out. According to a study conducted in December by PDG Insights, Latino consumers are much more likely to choose a retailer if they have unique or specialty items that represent their culture or ethnicity (26 percent versus 16 percent). The trends are similar in the Northeast.
Nationally, Latino consumers are more likely to say they will spend more for a product that reflects their values. And we see consistent attitudes among Latinos (54 percent versus 44 percent) in the Northeast, which creates an opportunity for purpose-driven brands.
The role of technology also is a bit differentiating for Latino consumers in grocery shopping and meal planning. More than half (54 percent) nationally say that they plan meals for the week. Trends in the Northeast are similar.
Within the planning process, 63 percent of Northeast Latino consumers say they build a shopping list ahead of time, so reaching them before they visit the store is important.
We see that 88 percent of Latino consumers in the Northeast engage with their retailers’ mobile apps, using them most often to check for deals and discounts, browse products and clip digital coupons.
Within retailers’ apps, Latino consumers also are more likely to engage with new tech features such as augmented reality to navigate the store and find digital coupons. In fact, three of four (75 percent) say they engage with AR in their retailer’s apps in some way, compared to 48 percent of the general population.
In addition, Latino consumers in the Northeast are more likely than their counterparts to use artificial intelligence as part of their grocery shopping journey (40 percent versus 13 percent). Among Northeast Latino consumers, 73 percent in the region say they use AI tools or apps at least weekly for grocery shopping and meal planning. They also are using these tools for meal recommendations, voice-activated shopping and finding deals and discounts.
PDG Insights also explored how consumers are viewing their broader circumstances, digging into areas beyond grocery shopping. Most Latino consumers in the region think positively about their household financial health, with 62 percent stating they are in good or excellent financial shape. However, the overall cost of living, healthcare costs and inflation remain top of mind for all consumers.
Diana Leza Sheehan, CEO of Evanston, Illinois-based PDG Insights, helps emerging brands and retailers make more effective strategic decisions. By leveraging data, she shares cost-effective consumer insights to plan retail sales narratives and brand strategies. Her 25-plus year career in the industry across sales, insight and strategy provides a unique perspective for clients.