You are here
ANAHEIM, Calif. — With multicultural consumer spending in the United States reaching $3.4 trillion, multicultural shoppers have become “super consumers” who are having a tremendous impact on the U.S. mainstream, according to a new Nielsen report, The Multicultural Edge: Rising Super Consumers.
The research, which will be presented at the 2015 Multicultural Retail 360 Conference in August, identifies multicultural shoppers as the most dynamic and rapidly growing segment of the U.S. consumer economy. This new report is part of a multicultural series that focuses on the attitudes and shopping habits of Latinos, African-Americans and Asians.
“The unprecedented influence of multicultural consumers on the behavior of non-multicultural shoppers is upending outdated assumptions and enlarging and expanding the multicultural market opportunity, which may be the key to the future,” said Monica Gil, senior vice president and general manager of multicultural growth and strategy at Nielsen.
The report identifies multicultural “super consumers.” They are the top 10 percent of households who drive at least 30 percent of sales, 40 percent of growth and 50 percent of profits in all categories. By understanding the cultural essence that powers ethnic super-shopper activities, marketers and advertisers can better understand future trends.
THE NEW MAINSTREAM
Younger and in their prime, multicultural consumers already comprise as much as 38 percent of the American population. Expected to become the numerical majority by 2044, 21 of the top 25 most-populated counties in the U.S. are already more than 50 percent multicultural.
Knowing the ethnic appeal of a brand is critical to marketers, since ethnic populations can vary widely even within metro areas. The combination of majority multicultural geographies and high levels of inter-ethnic proximity intensify the need for multicultural marketing.
Multicultural consumers make up a disproportionate market share of many categories, including dairy, baby food and diapers, laundry supplies and detergents, school supplies and other everyday products. Of 126 grocery store categories studied, 45 categories (36 percent) overindex in their total rate of spending for all multicultural segments compared to non-multiculturals. These behaviors show behavioral traits intrinsic to specific cultures.
The findings show Asian-Americans are more likely to eat organic foods (29 percent), while cultural identity is particularly important to African-Americans (78 percent) and Hispanics (71 percent). Social causes are also very meaningful to Hispanics at 43 percent.