ABSTRACT. Hispanics are the fastest growing ethnic community in the United States. By 2010, Hispanics will comprise 15,5% of the U.S. population. Moreover, Hispanic's buying power, estimated at %350 billion, grew at a compound annual rate of 7,5% between 1990-97. The primary reasons why the Hispanic market is the leading growth sector for food in the U.S. are income growth, and high birth and immigration rates. Income and household size elasticities for nine main food groups-grains, vegetables, fruits, milk, meat, legumes, fats, sugars, and beverages-were estimated from Engel curves for Hispanic households in the U.S. Income demand elasticities were very inelastic with point elasticity estimates smaller than -0.5 in absolute value. Household size elasticities were relatively higher. As the size of the Hispanic household increased, the demand for meats-beef, pork and chicken-increased substantially, ceteris paribus. The educational level of the household heads appeared to be one of the most important variables explaining the demand for food among Hispanic consumers, particularly for grains, fruits, and legumes. Other socioeconomic characteristics such as home-tenure status, age, and national origin, were also significant in explaining the demand for food. Consistent with program goals, goverment income subsidies (Food Stmps or Women, Infants, and Cifren (WIC) Certificates) received by low-income Hispanic households increased the demand for specific food groups, such as milk and fruits. Food processors and retailers now perceive the emergent Hispanic communities as a primary sector of the U.S. food economy.