Consumer , 03-18-2015
Multicultural consumers are rapidly becoming the core of the U.S. population. Today, African-American, Asian American and Hispanic consumers account for more than 120 million people combined (38% of the total population). These groups are projected to increase by 2.3 million each year before becoming a numeric majority of the population by 2044, according to the U.S. Census. With expansive buying power and unique consumption habits, multicultural consumers are an emerging consumer force in the country.
And multicultural consumers can fundamentally transform categories when you consider Super Consumers. The top 10% of a category’s household consumers—the “Super Consumers”—are the ones who can drive at least 30% of sales, 40% of growth and 50% of profits. They are product enthusiasts, fueled by an emotional and very often a cultural connection. With multicultural consumers disproportionately making up Super Consumers in 15 major studied categories, understanding the cultural essence that drives multicultural consumer behavior today will not only provide a clear vantage point to see future market trends—it will also help forge long-term and lucrative relationships with these growing shopper bases.
Who Are Today’s Multicultural Consumers?
Hispanics will experience the most growth among multicultural consumer group in the U.S., estimated to account for over half of the country’s total population growth by 2020 and nearly 85% by 2060, according to U.S. Census projections. Other multicultural groups will also make up an increasing share of the U.S. population. African-American growth will accelerate to 18% of total population growth by 2020 and increase to 21% by 2060, while Asian Americans will be responsible for 15% of total growth by 2020 and increase to 19% by 2060. Comparatively, non-Hispanic whites will be a shrinking portion of the country’s population growth: This demographic will see just a 7% growth share in 2020 that will become a decline of 6% by 2030.