Buying power of African Americans
African American consumers have significant spending power and are a key demographic in the US consumer market. According to a 2020 Nielsen report, African American buying power was estimated at $1.3 trillion, and they are projected to drive the growth of the multicultural market, which is expected to reach $2.5 trillion by 2025. African American consumers tend to spend more on categories such as personal care, beauty, and grooming products, as well as entertainment and dining out. Marketers and businesses are recognizing the significance of this demographic and are actively seeking to engage with African American consumers through targeted marketing and culturally relevant products and services.
Despite the economic impact of the COVID-19 pandemic, African American consumers were found to have maintained their spending in essential categories, with some shifts in spending towards health and wellness. This highlights the resilience of African American consumers and their continued significance in the US economy.
African American spending habits- key categories
African American consumers tend to spend more on several key categories, including:
- Personal Care and Beauty: African Americans are known to have a strong affinity for personal care and beauty products, such as skincare, hair care, and cosmetics.
- Entertainment: African Americans tend to spend more on entertainment, including music, movies, and live events.
- Dining Out: African Americans tend to spend more on dining out and food experiences, with a particular focus on traditional, culturally relevant cuisine.
- Technology: African Americans are heavy users of technology and tend to spend more on devices such as smartphones, laptops, and gaming consoles.
- Fashion and Apparel: African Americans also tend to spend more on fashion and apparel, with a focus on culturally relevant and stylish clothing and accessories.
These spending patterns reflect the values and preferences of African American consumers and demonstrate the significance of this demographic in the US consumer market.
How to target market to African American consumers
To target African American consumers, consider the following steps:
- Research the target audience: Study the cultural values, needs, and preferences of the African American community to understand what they value in products and services.
- Use culturally relevant messaging: African Americans may respond better to marketing that reflects their cultural experiences and values.
- Partner with influencers and community leaders: Partnering with African American influencers and community leaders can help increase credibility and reach among the target audience.
- Utilize diverse media: African Americans are likely to respond to a variety of media, including traditional media such as television and radio, as well as new media such as social media and online platforms.
- Consider the location: Make sure that marketing and advertising efforts are reaching the African American community in the desired location, whether that be through targeted digital ads or physical advertising in predominantly African American areas.
It is important to approach targeting any group with sensitivity and respect, and avoid stereotypes or cultural appropriation in marketing efforts.
