Across all categories, Latinos are more dissatisfied with current offerings than their non-Latino White counterparts.

Twenty-eight percent of Latinos report being unhappy with current product offerings, compared to 21 percent of non-Latino Whites. Dissatisfaction represents a missed opportunity for companies—Latino consumption could be significantly increased if their needs were met more effectively.

In some instances, Latinos may have a need for products in particular categories but are not purchasing, while in other instances, Latinos are buying products in categories even though they are not satisfied with the product choice, quality, or price.

Product penetration among Latinos can be low: a quarter of Latinos do not currently purchase in specific spending categories (such as makeup or full-service restaurants), despite being decision makers and having a need for the product, thus creating another significant opportunity for companies.

Consumer dissatisfaction varies extensively among Latino subgroups, driven by differences

in education, income, background, and gender. Latinos who are less educated are unhappier with products. Their dissatisfaction scores are 14 percentage points higher than the average Latino. Those who have not completed high school are three times more dissatisfied than non- Latino Whites at the same educational level. Latinos from lower-income backgrounds (less than $50,000 per year) have an average dissatisfaction nine percentage points higher than the average for Latinos, at 37 percent. And first-generation immigrants are seven percentage points more dissatisfied than average. Latina women are ten percentage points more dissatisfied than Latino men, similar to the 12 percentage point difference seen between White men and women.

Latino dissatisfaction with current product offerings grew significantly between 2021 and 2022 across all categories, and they are consistently more dissatisfied than non-Latino Whites, even though non-Latino Whites are also more dissatisfied than previously. Beauty and personal care, entertainment, hospitality and travel, vehicle purchases, housing, banking and financial services, and healthcare are all categories with higher-than-average Latino dissatisfaction.

Latinos are dissatisfied with current product offerings for several reasons, particularly price, lack of features, and lack of value for money. For both non-Latino Whites and Latinos, affordability and quality are the main decision drivers for purchases.

High prices are linked to dissatisfaction across categories, and, given low disposable income (as discussed in the previous chapter), remain a critical consideration. A shortage of quality products and poor value for money also lead to dissatisfaction. And, while less important than price, customers are disappointed with companies that are not committed to addressing social inequities.

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