Minority Growth Represents Marketing Opportunity

March 12, 2010

The increasing percentage of the US demographic profile represented by ethnic minorities presents an opportunity to marketers and retailers, according to The Nielsen Company.

Minority Growth Offers CPG Potential
By 2050, more than half of the U.S. population will be non-white (African-American, Asian, Hispanic). In that same time frame, the economic opportunity for brands in the multicultural CPG space is projected to exceed $500 billion.

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Multicultural CPG Buying Trends
When compared to the general population, on average…

Hispanic Shoppers

  • Tend to spend more on categories for babies and children. Hispanic households represent 11.8% of CPG total spending, but 16.6% of disposable diaper sales.
  • Tend to spend more in traditional mass merchandise and warehouse clubs.
  • Tend to spend more on food consumed at home.

African American Shoppers

  • Tend to spend more on health and beauty products, such as fragrance. African Americans represent 11% of CPG total spending, but 20.3% of dollars spent in beauty supply stores.
  • Tend to spend more in drug and dollar stores.
  • Tend to spend more on ingredients used to cook from scratch.
  • Tend to buy fewer items on deals or with coupons.
  • Tend to spend more on food consumed at home.

Asian American Shoppers

  • Tend to spend more in club stores. Asian Americans represent 3% of CPG total spending, but 5.5% of dollars spent in warehouse clubs.
  • Tend to spend more on categories for babies and children.
  • Are more likely to eat outside of the home.

Multicultural Media Trends
When compared to the general population, on average…

Hispanic Media Consumers

  • Strong following of “telenovelas” – Spanish-language soap operas.
  • On average, watch more broadcast and satellite TV.
  • Display higher usage of mobile internet.

African American Media Consumers

  • Have the highest TV usage of any demographic at nearly 80 hours a week per household.
  • Have a higher percentage of multi-set households.
  • Display higher usage of mobile internet.

Asian American Media Consumers

  • More likely to have newer technology (DVD, HD, digital cable).
  • Tend to watch less TV.

Hispanic TV Audience Shows Fastest Growth in ’09-’10
The Hispanic TV audience in the US is growing faster than the TV audience for the total population, according to earlier estimates from The Nielsen Company, which show a continued increase of Hispanic TV homes (2.3%) compared with total US TV homes (0.3%) for the 2009-2010 TV season. Nielsen predicts that number of people ages 2 and older in Hispanic TV homes will also grow, with estimates showing a 2.4% increase to a total of 44.3 million.

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