African Americans are crucial to the consumer economy, with a population of 39 million and buying power of $892 billion – a figure expected to exceed $1.1 trillion in 2012 – according to a Packaged Facts study.
That increase equates to cumulative growth of 28.4% during the forecast period.
Below, additional findings from the study.
Those living in the South account for 54% of African-American buying power. Other key segments:
- Residents of central cities ($430 billion, or 48% of the total)
- Married couples ($428 billion or 48% of the total)
- Households with an income of $75,000 or more ($405 billion, or 45% of the total)
There are 2.4 million African-Americans in $75K+ households, and they are…
- More likely than other affluent consumers to spend money on fashionable dress, toiletries and cosmetics, and cruise vacations
- Less likely to use the internet to plan shopping trips, gather information for shopping, or make online purchases
African-American consumers create a wide range of possibilities for marketers in various industries:
- Food & Beverage: 3.9 million black consumers spend $150 or more per week on groceries.
- Health & Fitness: 7.6 million African Americans said they exercise regularly at home, which opens up possibilities for marketers of exercise equipment.
- Clothing: African-American men and women represent 22% and 26% of all suit-buyers, respectively.
- Auto: Approximately 9 million African Americans plan to buy a new vehicle, accounting for more than 9% of all consumers who plan to purchase a new vehicle.
Black media continue to offer advertisers access to African-American consumers, who nevertheless also share many of the mainstream media preferences of other American viewers and readers:
- Television is a top source of media consumption, with 4 in 10 households containing 4 or more televisions.
- Spending on magazines is 6% more than the national average.
- Radio and newspapers are less popular than the average.
- Internet use is still lagging, but by 2012 penetration in the African-American community is expected to reach 62%.
About the report: “The African-American Market in the US” highlights the shopping, spending and leisure-time habits of the 2.4 million affluent African-American households with a household income of $75,000 or more. Packaged Facts has included individuals who identify in Census Bureau data as black or African American alone in their definition of African-American, regardless of whether they also identify as Hispanics.