African American Buying Power Approaches $1t


Packaged Facts reports we should see an increase in marketing efforts towards African Americans.

With a population of 40 million and buying power approaching $1 trillion in 2010, African Americans are a key segment in an economy that increasingly depends upon the needs and preferences of multicultural consumers, according to The African American Market in the U.S., 8th Edition by leading market research publisher Packaged Facts.

“With such financial clout, marketing efforts to reach out to African Americans are likely to increase,” says Don Montuori, publisher of Packaged Facts. “Major consumer products marketers have begun to align their strategies with the multicultural majority emerging in the U.S. and some have even indicated that multicultural consumers have become their core focus as they strategize and set their sights on the next ten years.”

The African American population is smaller than the U.S. Hispanic market, but the disposable personal income of both African American and Latino consumers is projected to trend comparably over the next five years, with each experiencing cumulative growth of at least 28% from 2009-2014.   Packaged Facts estimates that the buying power of black consumers in the U.S. will increase to $1.2 trillion by the end of the forecast period.

The African American consumer population has been hit especially hard by the recent recession, with unemployment rates for blacks exceeding that of any other major population group. Nevertheless, several sources cited in the report indicate that the sense of empowerment created by the election of Barack Obama has spurred blacks to adopt a more optimistic vision of the future than that held by other Americans. This includes greater optimism regarding their own personal finances and a general proclivity to agree that they are less likely to hold off making big-ticket purchases such as automobiles in the near future.



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