U.S. Latino Stands to be Third Largest Economy in Consumption
The Latino population has continued to thrive as it keeps consumer spending robust.
MIAMI — A new report from the 2026 LDC U.S. Latino Economic Impact: Part One showcased that U.S. Latinos accounted for over 28% of economic growth in 2024, which represents one-fifth of the population.
The report from the Latino Donor Collaborative commissioned the L. William Seidman Research Institute at Arizona State University’s W.P. Carey School of Business that developed research in various key findings in the economic stances.
It was found that Latin gross domestic income has exceeded household consumption, generating $3.4 trillion in income and consuming $2.8 trillion to the economy, making it larger than India but smaller than Germany on the world stage according to the report. The U.S. Latino has thrived in GDP, GDI, and consumption where their contributions to the American economy takes notice.
The Latino population is the fastest growing demographic in the U.S. including people who are mostly Mexican, Puerto Rican, and of Cuban descent.
Over the past years, the Latino population has seen a growth in economic mobility and home and business ownership allowing the U.S. economy to thrive through their contributions.
“I think it’s an opportunity to understand that 20% of the main street market is Latino in major urban markets,” said Anna Valdez, the President & CEO of the Latino Donor Collaborative. “Companies like Constellation Brands, which acquired Modelo, have gone deep to go into the Latino market through advertising by giving stories.”
The Latino population’s contribution to the economy has seen a healthy growth in recent years when now Latino children are attaining a Bachelor’s degree or higher from a four-year university and working in more white-collar jobs.
There are more business leaders and owners that have contributed to the growth within the community. Other states including California, Texas, Florida, and New York currently lead the way where the Latino presence is strong.
Today, notable Latino entrepreneurs have risen in the U.S. community that includes Los Angeles Angels owner Arte Moreno, MasTec chairman, Jorge Mas, and actress & Honest Company founder Jessica Alba.
The impact found in the data from the Latino Donor Collaborative that the Latino community has made an impact in GDP is nearly 3% of growth, based on the 2026 report.
Valdez has stated this data was intended to showcase the story of the community to differ from the stereotypes that are often said about Latinos.
“The aim is to close the gap between the stereotyping, the assumptions, and the underestimations,” said Valdez about the data. “Not all Latinos are immigrants and blue collar. The majority of them today are white collar.”
Latino immigrants who came to the U.S. in the 1970s were mainly blue-collar workers without knowing how to speak English. The bulk of the Latino immigrants come from Mexico, at 57%. California and Texas are mostly of Mexican descent while Florida is mostly of Cuban descent, mainly found in the Miami-Dade area.
Today, there are other Latin-based brands that are sold in the U.S. that includes Modelo, Dos Equis, and Corona, which are one of the most popular brands in the U.S. Latin cuisines including Mexican and Cuban have been popular among the public, which has allowed Latino businesses to thrive.
With a $2.8 trillion economy from the Latino consumers, California and Texas make up the largest economies in the United States with these states generating nearly over or under a trillion dollars.
“Companies that earn the loyalty of the U.S. Latino consumers and build meaningful exposure to this demographic are well positioned to benefit from both the current and future growth of this market,” said Jose Juardo, researcher at ASU’s Seidman Institute about Latino consumption. “As a result, financial valuations that do not account for this potential upside are, by definition, incomplete.”
As the figures show in the report, Latinos of Mexican descent account for $2.3 billion in economic output. California accounts for 53% of the local Latino economy where it remains as the highest Latino population demographic throughout the U.S.
Overall, the U.S. Latino population drove up the U.S. economy by 28.2% in 2024 where the country had a $29.3 trillion GDP.
U.S. Latinos accounted for the third-largest spending economy in the world with the fastest growing incomes of any cohort.