Hispanic consumers are trimming their grocery spending on a variety of products, including beer and cooking spray, according to recent earnings calls from major companies like Coca-Cola, Constellation Brands, and Colgate-Palmolive. This demographic, which comprises about 20% of the U.S. population and wields significant purchasing power—resulting in a $3.6 trillion Latino economy in 2022—has been noted for spending more on consumer packaged goods compared to non-Hispanic shoppers.
However, impactful political and economic concerns are leading to reduced spending among Hispanic consumers. Fear around stricter immigration policies has intensified, contributing to decreased consumer confidence. A Goldman Sachs report highlighted a decline in purchase intent among Hispanic shoppers in early 2023, particularly related to concerns about job stability and the ongoing immigration debate.
Companies reliant on Hispanic consumers are feeling the effects. Constellation Brands reported a weakened outlook for fiscal 2026, attributing it to tariffs and diminished spending in the Hispanic community, where worries about immigration issues are prevalent. Notably, Modelo beer, popular among Hispanic consumers, recently overtook Bud Light in sales.
Similarly, Keurig Dr Pepper and Coca-Cola have detected a slowdown in spending from Hispanic consumers, with Coca-Cola facing challenges from social media rumors impacting customer traffic. Associated British Foods and Colgate-Palmolive also reported declines in sales linked to lower shopping activity from this demographic.
Despite these challenges, retail giant Walmart noted that the immigration policies have not significantly impacted their sales. Overall, the combination of socio-economic worries and tight spending habits among Hispanic consumers is creating a cautious atmosphere in the grocery market.
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