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Buying Power of African Americans

Expected Surge in Buying Power

The buying power of African-Americans in the United States is expected to increase nearly 30% to $682 billion in the next five years, according to the U.S. African-American Market report. A new research report published by Packaged Facts and available through MarketResearch.com
The publication outlines several factors that will propel this explosive growth, also provides details about demographic features and consumer behavior of the African-American market. According to the new report, female and affluent segments of the A/A demographic are of particuliar importance to marketers and retailers looking to establish or maintain a foothold within this demographic.

African-American Population

In the A/A population there are 1.4% more women than men and nearly half of the households within this demographic are headed by women. Giving females a far more prominent role in consumer decisions than women in other ethnic groups.
The U.S. A/A market also provides extensive insight into the buying patterns of the 3.7 million affluent A/A who are projected to have a combined buying power of $294.4 billion by 2006. Marketing strategies have been employed to attract them.
Marketers have identified signficant successes in targeting both the female and affluent segments of the A/A population according to Meg Hargraves, vice president of Research Publishing for MarketResearch.com
Luxury car makers, food and beverage manufacturers alike have focused their efforts on these market segments given the over whelming influence they have in the market as a whole.

Some Current and Earlier Buying Power Facts

In 1973, the total buying power of all Black Americans was $40 billion. Today that figure is $400 billion according to last avilable report from 2000! Collectively we have the buying power to buy ABC, NBC and CBS and the Los Angeles Lakers and have plenty left over for education of our future leaders! If Black America were a Nation, it would be the ninth (9) richest Nation in the World.

Disposable Income grows for minorities according to a report by University of Georgia's Terry College of Business & the Selig Center for Economic Growth. This growth is expected to continue for the next five years. Hispanics, Asians, African-Americans and Native-Americans show strong leaps and bounds of disposable income for these households. These conditions seems to have been obtained thru better employment and economic growth from the 90's thru 2002.

But there are major concerns as expressed by Harold Hambrick, executive director of L.A. Black Business Expo & Trade shows. Big corporations are no longer adequately supporting African-American media or Black community events like they used to says area businessmen.
The focus seems to be on Latino Markets right now said Hambrick. Latinos make up 46% of market in South Los Angeles. Black's only make up 10% of the market. But that translates to 4 billion dollars annually. Money is being spent outside the community. We have to turn that money back to this community saids Hambrick.

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Buying Power of Black-Americans