Black Spending Power Tops $1 Trillion

Press Release
Sep 26, 2016
Spending by African Americans on dining out, home improvement, automobiles, and financial services on uptick

Rockville (MD), September 26, 2016 —Overall buying power of African Americans has seen noticeable economic growth and influence, despite the well-documented growth of Hispanic, Asian, and other multicultural segments of the U.S. population sometimes overshadowing it. Within the past five years, African American buying power topped $1 trillion. Specifically, in the brand new report African Americans: Demographic and Consumer Spending Trends, 10th Edition, leading market research firm Packaged Facts found that between 2010 and 2015 African American spending power grew from $995 billion to $1.3 trillion for cumulative growth of 27%. Packaged Facts forecasts cumulative buying power of African Americans at a growth of 16% between 2015-2020.

Affluent African American Households Out-Spending Total Population

African American buying power has grown thanks in part to the rise of affluent households. Between 2005 and 2014 the number of African American households with an income of $100,000 or more jumped 83%, from 1.1 million to around two million. Comparatively, the total number of American households in the $100,000+ income bracket grew only 53%. Likewise, the number of black households with incomes ranging between $75,000 and $100,000 increased by 25%. As the two-tier economy continues to reach into all demographic segments, it is likely that buying power from affluent black households will continue to grow at a relatively rapid pace, finds Packaged Facts.

Black spending power has sparked consumer expenditures by the average African American household to grow faster than consumer spending by other households (26% vs. 23%) for the U.S. economy overall. . Dining out is one area where African Americans are spending more of their money. Packaged Facts estimates that the amount black households spent in 2015 on food away from home was 14% higher than in 2012, while expenditures on food at home increased only 5%. Similarly, purchases on apparel, personal care products (especially fragrances), home furnishings, appliances (both major and minor), and home improvement/remodeling also boomed.

The buying power of African Americans played a major role in the rush to auto dealers’ showrooms that occurred between 2012 and 2015. During this time period, spending by American consumers on automotive vehicles grew by $126 billion, or 36%.

Higher-income African-Americans outspend the total population on “future-oriented” expenditures such as life, endowment, annuity, and other personal insurance, as well as contributions to pensions and Social Security. Packaged Facts also found that black spending power from higher income households presents a major opportunity for financial firms. Over the past decade, the percent of higher-income African American households holding nay form of financial investment has trended upward from 36% to 44%.

View additional information about African-Americans: Demographic and Consumer Spending Trends, 10th Edition, including purchase options, the abstract, table of contents, and related reports at Packaged Facts’ website: http://www.packagedfacts.com/African-Americans-Demographic-10293172/.

Please link any media or news references to our reports or data to www.packagedfacts.com.

About Packaged Facts

Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods, and pet products and services. Packaged Facts also offers a full range of custom research services. Reports can be purchased at www.PackagedFacts.com and are also available on www.marketresearch.com and www.profound.com.

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