America's demographic profile is undergoing a major change: By 2050, more than one-half of the US population will be non-white—African-American, Asian, or Hispanic—representing both a historic cultural shift and huge economic opportunity, according to the Nielsen Company.
By the 2050 milestone, the multicultural business opportunity for brands in the consumer packaged goods (CPG) space is projected to reach $520 billion, up 74% from $299 billion today.
Minority households tend to over-index on some key shopping and media metrics, compared with the general population.
Key Multicultural Buying Insights
Hispanic shoppers tend to...
- Spend more on categories for babies and children: Hispanic households account for 11.8% of CPG total spending, but 16.6% of disposable diaper sales.
- Spend more in traditional mass merchandise and warehouse clubs.
- Spend more on food consumed at home.
African-American shoppers tend to...
- Spend more on health and beauty products, like fragrance: African-Americans account for 11.0% of CPG total spending, but 20.3% of dollars spent in beauty supply stores.
- Spend more in drug and dollar stores.
- Spend more on ingredients used to cook from scratch.
- Buy fewer items on sale or with coupons.
- Spend more on food consumed at home.
Asian-American Shoppers tend to...
- Spend more in club stores: Asian-Americans account for 3.0% of CPG total spending, but 5.5% of dollars spent in warehouse clubs.
- Spend more on categories for babies and children.
- Eat outside of the home more often.
Key Multicultural Media Insights
Hispanic media consumers...
- Are strong followers of Telenovelas.
- Watch more broadcast and satellite TV.
- Display higher use 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 use of mobile Internet.
Asian-American media consumers...
- Are more likely to have newer technology (DVD, HD, and digital cable).
- Tend to watch less TV.
