The second largest Hispanic cohort living in the U.S. are Hispanic Millennials, which is why it's important to understand their motivations when it comes to purchasing and food, beverage and alcohol consumption.

According to a new study, Latinos are independent shoppers and they spend more money on groceries than other groups.

The Hispanic Millennial Project is a joint research study produced by ThinkNow Research and Sensis and designed to gain a deeper understanding of Hispanic millennials, comparing their habits to non-Latino millennials and older Latinos.

ThinkNow Research and Sensis recently published the fourth installment in a series of insights focused on the Latino community. The latest research focuses on food, beverage and alcohol consumption behaviors and its cultural implications, and it builds on previous attempts to highlight meaningful differences between Latinos and non-Latinos; healthcare and attitudes and behavior related to exercise, health and diet; and attitudes and opinions regarding financial well-being, banking and saving.

The report revealed that nontraditional markets will witness the fastest Hispanic millennial growth. Cities such as Bend, Oregon; Charlotte, North Carolina; and Nashville, Tennessee, will benefit from Hispanic millennial expenditure. In Houston, Texas, Hispanic millennials account for the second largest millennial population (44 percent vs. 56 percent, non-Hispanic white) and more than half (54 percent) of Houston's Hispanic millennial population are foreign born. Population size alone signifies the span of that demographics' influence.

According to the report, 66 percent of Hispanic millennials indicated that culture and heritage impacts their purchasing "some" or "a lot." Eighty-five percent believe that chicken is healthy, and 57 percent believe that sugar is healthy. Also, 74 percent of Hispanic Millennials do all or most of households' grocery shopping (compared to 78 percent of non-Hispanic white millennials), 80 percent use recipes, 39 percent rarely or never use coupons and Hispanic millennials spend the most on groceries ($149/week). When it comes to alcohol consumption, beer is most popular (51 percent), followed by wine (38 percent), and tequila and vodka are enjoyed at the same level (63 percent). Corona and Dos Equis are the most popular brands among young Latinos, and when discovering new brands of alcohol, 50 percent of Hispanic millennials are influenced by friends.

Some of the key findings from the report include Hispanic millennials use food and beverage to connect to cultural roots (56 percent); foreign-born Hispanic millennials consume mass market food for the sake of assimilating into mainstream culture; Hispanics are less likely to conduct research and use coupons; and heavy beer drinkers in this demographic link consumption to culture and friendship. Also, high-earning Latinos are less likely to choose foods that reflect their cultural background/culture (49 percent).

Additionally, Hispanic millennials are more likely to shop at mass retailers (Wal-Mart, Target, etc) than all others (77 percent vs. 66 percent). Also, when purchasing visiting mass retailers, Hispanic millennials prefer established brands, and they are less likely to be concerned with locally sourced and locally grown produce, by comparison. Likewise, Hispanic millennials are less likely to consume artisanal beverages and foods.

According to the report, familial heritage drives preference, whether Hispanic millennials believe it or not. Tension exists for Latinos because they live in two cultures and they're caught between "very different generations and their proper life stage." Finances and health are also a factor for Hispanic millennials, who are more likely than others to state that they are on a diet to lose weight (40 percent vs. 36 percent, non-Hispanic white), and yet they're less careful about their diets than before. They value the importance of whole foods, but they don't totally believe processed food is harmful. Eighty-one percent prefer home-cooked meals, and yet they are most likely to eat fast food weekly (62 percent).

Hispanic millennials trust brands like Coke and Pepsi, but they are becoming less interested in products with high fructose corn syrups, additives and high sugar, signifying an opening for organic food and beverage companies. Artisanal food companies and craft brewers can penetrate the market, but they'll have to work hard to win over Hispanic millennial consumers because the deep cultural resonance is not there.

Overall, Hispanic millennials consider themselves "foodies" and Hispanic millennials lead the way in terms of ingredients and how they're sourced. They tend to choose food that's free of growth hormones (70 percent), sourced/manufactured ethically (63 percent), free of genetically modified organisms (61 percent) and gluten-free (42 percent).

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