Hispanics are projected to be the fastest growing ethnic minority in the U.S. over the next 20 years, but under-index on wine consumption. According to a new report by Rabobank's Food & Agribusiness Research and Advisory group, if the wine industry were able to bring Hispanic wine consumption up to the level of the broader US population, annual wine consumption among Hispanics would increase by nearly 50 million cases over the next 20 years. That would put annual wine consumption by U.S. Hispanics at nearly 95 million cases, by Rabobank calculations.
The report, "Marketing Wine to U.S. Hispanics: The 50 Million Case Growth Opportunity," by Stephen Rannekleiv, Rabobank wine analyst, says that reaching the U.S. Hispanic market also has implications for international growth markets, such as Mexico.
"If U.S. wineries can develop strategies that positively affect the wine consumption rate of U.S. Hispanics, those strategies will have far reaching, positive benefits in other Hispanic markets," said Rannekleiv. "There is an increasingly affluent market of over 111 million consumers in Mexico who could be influenced using the same strategies that were initially targeted at the U.S. Hispanic market."
Rannekleiv went on to outline key considerations which U.S. wineries should consider as they develop strategies to reach this promising Hispanic market. Some of these considerations include:
. Does the brand's flavor profile match Hispanic taste preferences?
. How will the brand attract Hispanic millennial consumers?
. What support will be given for pairing wine with Hispanic food?
. How does this marketing strategy align with distributor interests?
The report concludes that if the wine industry fails to engage the Hispanic population, it risks losing this fast growing segment of the U.S. population to the beer industry.