At $2.8 trillion, the US Latino consumer market is third largest in the world

A new report from the Latino Donor Collaborative, with research conducted by ASU's Seidman Research Institute, shows how Latinos across the United States are increasingly important drivers of economic growth, workforce expansion, and consumer spending.

TEMPE, Ariz., July 21, 2026 /PRNewswire/ -- Where will tomorrow's customers, workers, and entrepreneurs come from? A new report from the Latino Donor Collaborative, which commissioned the L. William Seidman Research Institute at Arizona State University's W. P. Carey School of Business to develop the research, shows the U.S. Latino community is increasingly driving all three. The 2026 LDC U.S. Latino Economic Impact Report: Part One finds that U.S. Latinos accounted for 28.2% of U.S. economic growth in 2024, despite representing about one-fifth of the nation's population.

The report shows the U.S. Latino economy reached $4.4 trillion in 2024. If measured independently, it would rank as the world's fourth-largest economy and the fastest-growing among the world's largest economies.

Latino households generated $3.4 trillion in gross domestic income, while household consumption reached $2.8 trillion — the third-largest consumer market in the world, larger than those of Germany and India. Since 2019, inflation-adjusted Latino household consumption has grown nearly three times faster than that of non-Latino households.

For employers, investors, and policymakers, the findings help explain why organizations planning for long-term growth should pay close attention to the U.S. Latino economy.

"Latino household consumption is expanding at nearly three times the pace of the rest of the U.S. consumer base. Any company, investor, or policymaker assessing where demand will come from over the next decade has the answer in front of them," said Sol Trujillo, chairman and co-founder of the Latino Donor Collaborative.

"The conversation about U.S. Latinos has focused on demographics for far too long," said Ana Valdez, president and CEO of the Latino Donor Collaborative. "This report demonstrates that the real story is economic performance. U.S. Latinos are earning more, creating more businesses, buying more homes, strengthening our workforce, and driving consumer demand at a pace that is reshaping the American economy. Businesses that recognize these trends and plan for the economy taking shape today will be better positioned to compete in the years ahead."

"At a time when U.S. population growth is slowing, trade disruptions are threatening supply chains, and public finances are under mounting pressure, the rapid growth of the Latino economy has become increasingly important," said Jose Jurado Vadillo, Seidman senior research economist. "For policymakers, these trends underscore the need to invest in resources to strengthen and accelerate Latino contributions to the broader economy. For business leaders, they point to a critical source of present and future demand. As Latinos drive a growing share of U.S. purchases, companies will need to understand this demographic better and tailor their strategies accordingly."

By 2025, U.S. Latinos accounted for 92.6% of all new households formed and continued to outpace the broader U.S. population in income growth, business growth, consumer spending growth, and workforce expansion. Latino-owned employer businesses totaled 5.7 million in 2022. At the same time, a younger population concentrated in its prime working years continues to strengthen labor force participation and business creation nationwide.

The economic impact extends beyond traditional Latino population centers. While California's Latino economy reached $1.1 trillion and Texas reached $820 billion in 2024, the report also highlights growing economic influence in states including North Carolina and New Jersey, where Latino population growth is expanding local workforces, businesses, and consumer markets.

The report also examines the economic contributions of Americans of Mexican descent, who represent 57% of the U.S. Latino population and generate $2.3 trillion in economic output, underscoring their central role in the broader U.S. Latino economy.

"Today, many businesses are focused on the pace of AI investment and implementation, the ever-changing cost of imported raw materials, and the quality and availability of the workforce," said Dennis Hoffman, director of ASU's Office of the University Economist. "But savvy business leaders recognize the Latino community as a powerful economic engine. The numbers are real, and the momentum is growing. In a world of uncertainty, the purchasing power of U.S. Latinos — fueled by a young, growing population — creates a large and expanding domestic marketplace. Businesses that recognize this opportunity will be better positioned to grow, while those that overlook it risk missing one of the country's fastest-growing markets."

Produced by the Latino Donor Collaborative, with research conducted by the Seidman Research Institute, the report is part of an ongoing collaboration that analyzes U.S. Latino gross domestic product, gross domestic income, household consumption, workforce participation, entrepreneurship, and demographic trends. The report equips business leaders, investors, and policymakers with data-driven insights into how the U.S. Latino community is shaping the nation's economic present and future.

About the Latino Donor Collaborative
 The Latino Donor Collaborative (LDC) is an independently funded 501(c)(3) nonprofit organization and think tank. The LDC has consistently provided economic and business data through meticulous research and fact-based insights. Its reports have become essential tools for U.S. resource allocators, highlighting the growing opportunities presented by the myriad contributions of U.S. Latinos across the social spectrum. Learn more on the Latino Donor Collaborative website.

About the W. P. Carey School of Business
The W. P. Carey School of Business at Arizona State University is the largest and one of the top-ranked public business schools in the United States. The school is internationally recognized for its programs and the research productivity of its distinguished faculty. Students come from more than 120 countries, and over 130,000 alumni represent W. P. Carey worldwide.

Read the report

• Download the report from the Seidman Research Institute website.
• Download the report from the Latino Donor Collaborative website.

For more information/media contacts:
Shay Moser, W. P. Carey School of Business, [email protected]
Pablo De La Fuente, Latino Donor Collaborative, [email protected] 

SOURCE W. P. Carey School of Business at Arizona State University