By 2020, America will see more spending growth from Hispanics than young adults

Hispanics will experience faster spending growth than young adults by 2020, according to new projections from investment bank Morgan Stanley.

“The aging of the population and the rise of Millennials will continue to impact the consumer landscape over the next 5 years,” analysts said in a note. “However, the share of the consumer wallet controlled by the Hispanic population will experience the fastest pace of growth, driven by the addition of 8.2 (million) people—or 52% of total U.S. population growth—and above-average per-capita income growth.

Here’s the chart:

The Census has previously projected that by 2020 approximately 1 in 5 Americans will be of Hispanic origin. Morgan Stanley notes that they already make up approximately 21% of the Millennial generation. Growth will come not from immigrants but from native births.

Hispanics and adults aged 25-34 spend about the same amount on average in a given year, according to Morgan Stanley.

The sectors that will see the biggest gains from this trend are rental housing and home improvement, food, apparel, cell phones, and used cars. California, Texas, Florida, New York, and Illinois are the states that will be most impacted.

“Despite the coming-of-age of the millennials, the distribution of the country’s population over the age of 20 is not getting any younger,” the analysts said.

Rob covers business, economics and the environment for Fusion. He previously worked at Business Insider. He grew up in Chicago.