Hispanics make up a growing share of the US affluent population (those with household income of at least $125,000), according to research data released by Ipsos. The percentage of affluents overall who are Hispanic stands at 11%, but that figure is much higher among younger than older affluents.
Indeed, 20% of Gen Z affluents are Hispanic, per the data, compared to 13% of Millennial affluents, 12% of Gen X affluents, 6% of Boomer affluents and 3% of Senior affluents.
With their growth among younger generations – in which they make up a significant share of the population (including 26% share of Gen Z) – Hispanics now comprise the largest affluent subgroup in the US. Additionally, 1 in 5 Hispanics overall is affluent.
Looking at diversity within the Hispanic affluent population, Ipsos’ data reveals that Hispanics of Mexican origin are under-represented relative to their population share, while Puerto Ricans and Cubans are over-represented within the affluent population compared to the general population. Affluent Hispanics of Cuban origin have the highest average incomes, with 51% living in households with annual income of at least $200,000.
The vast majority of Hispanic affluents are first-generation affluent, with 1 in 4 of this group growing up poor and three-quarters growing up middle-class. Affluent Hispanics tend to be bi-cultural, with two-thirds describing themselves as both Latino/a/Latinx and American. Some 3 in 10 self-identify as completely American, while 3% identify as completely Latino/a/Latinx.
Brands need to recognize the role that culture plays with affluent Hispanics. Among affluent subgroups, they’re the most likely to agree that “I feel more connected to my cultural heritage than my parents did,” with almost half (47%) feeling this way. That compares with 39% of affluent non-Hispanic Blacks and 18% of affluent non-Hispanic Asians. Additionally, 6 in 10 agree that “it is easier these days to express my culture heritage than it was for previous generations.”
Half of affluent Hispanics are bilingual and use both Spanish and English. Research has suggested that advertising in Spanish can have an impact on Latino audiences, and Ipsos notes that “marketers thinking about how to message to affluent Hispanics need to consider that language continues to be the glue that connects them to their culture and with their loved ones.”
Hispanics overall tend to be bigger spenders than other racial/ethnic groups, and this applies to affluents also. Affluent Hispanics are as likely as non-Hispanic affluents to make purchases in various expenditure categories, and more likely in areas such as technology (computers, tablets, smartphones), fragrance, and watches. They also have higher median annual expenditures in areas including personal travel, leisure entertainment and dining, technology, men’s apparel and accessories, watches, and fragrance.
For more, check out Ipsos’ data here.
About the Data: The results are based on the Ipsos Affluent Barometer, Q2 2022 and the Ipsos Affluent Survey, Spring 2022.