The U.S. Hispanic foods category has grown into a more than $40 billion segment and now ranks among the fastest-growing categories in the food industry, according to a 2026 industry update from Stout, a global investment bank and advisory firm.
The report arrives ahead of National Hispanic Heritage Month, observed Sept. 15 through Oct. 15, and points to demographic momentum, rising household incomes and mainstream adoption of Hispanic flavors as the forces reshaping the category for grocery retailers.
Hispanics now represent about 20 percent of the U.S. population, and the demographic recorded the largest absolute increase of any group from 2010 to 2026, adding roughly 20 million people, according to the report. Estimated purchasing power stands at $4.1 trillion, with Hispanic households accounting for about 15 percent of total consumer spending.
Key findings
- The Hispanic population grew 38.6 percent from 2010 to 2026, reaching 70 million, and contributes about 23 percent of U.S. dollar growth.
- The share of Hispanic households earning $75,000 or more annually rose from 41.3 percent in 2022 to 50.8 percent in 2026.
- Mexican cuisine is preferred by 39 percent of U.S. consumers, trailing only American, while 70 percent of foodservice operators report rising demand for global flavors.
- Hispanic foods made up 60 percent of ethnic food sales in 2025, and about 1 in 10 U.S. restaurants serves Mexican food.
- Birria has grown 350 percent on restaurant menus in four years.
How Hispanic consumers shop
Stout found that Hispanic consumers over-index on grocery spending compared to the general population, prioritizing fresh and authentic meals cooked at home. They over-index in meats, poultry and other perishables, prefer buying meat from service counters and butcher shops rather than pre-packaged options, and gravitate toward brands with authentic cultural roots.
At the same time, the report noted private label is gaining traction as a cost-effective alternative, giving retailers an opening on both the branded and own-brand sides of the aisle.
Larger average household sizes translate into more frequent, family-oriented grocery trips with bigger baskets, with spending concentrated in grocery rather than foodservice. On a per-person basis, Hispanic consumers spend roughly in line with non-Hispanic consumers on food at home, which the report said supports sustained expansion of the category.
From the ethnic aisle to the mainstream shelf
Products once confined to ethnic aisles or specialty retailers have moved into mainstream channels, the report said, with Hispanic products driving growth in retail, foodservice and e-commerce.
Core staples such as tortillas, rice, beans and sauces remain a stable and highly profitable segment, while adjacent categories are gaining momentum, including frozen meals, spicy chips, pre-packaged dips, meat snacks and packaged beverages. The report also flagged four emerging trends shaping innovation: diet-friendly options such as grain-free tortillas, Hispanic-inspired spicy snacks, fusion foods like birria ramen and Korean BBQ tacos, and better-for-you products such as low-carb tortillas and clean-label items.
Deal activity heats up
The category remains highly fragmented, with a limited group of scaled, authentic brands, a scarcity that Stout said is driving competitive M&A processes and premium valuations.
Recent transactions cited in the report include Highlander Partners’ acquisition of hot sauce brand Tapatio in January, PepsiCo’s purchase of Siete Foods in January 2025 and Darden’s acquisition of Tex-Mex chain Chuy’s in October 2024. On the partnership side, McCormick paid $750 million in January to raise its stake in the McCormick de Mexico joint venture with Grupo Herdez to a controlling 75 percent.
Both strategic buyers and financial sponsors are pursuing platforms that combine authenticity with scale, the report said, targeting businesses that can extend into adjacent categories as Hispanic flavors reach a widening consumer base.