Claritas LLC, a data-driven marketing company, recently released its 2021 U.S. Black Consumer Market Report covering “demographics and spending categories where Black consumers move markets.” Here are eight takeaways from the report.
Market size: Black Americans numbered more than 40.8 million in 2020, representing 12.4 percent of the total U.S. population.
Age. Black Americans are younger on average than non-Hispanic White ethnic groups. Today, 13.3 percent of the U.S. millennial population is Black. By 2025, nearly 14 percent of the U.S. Gen Z population will be Black, 27 percent will be Hispanic, 6.2 percent will be Asian and 5.5 percent will be multiracial and other populations.
Cultural diversity. Uniquely challenging about the Black consumer market is its cultural complexity. The U.S. Black population accounts for the second-largest multicultural segment of the U.S. at 12.4 percent. The Black multicultural segment has seen growth of nearly 21 percent since 2000
Social media savvy. Young Black consumers are socially conscious. Through social media, they have brokered a seat at the table and demand that brands and marketers speak to them in ways that resonate culturally and experientially.
Where we live. The top five states (in descending order) where Black Americans reside are Texas, Florida, Georgia, New York and California. The top metro areas are New York, Atlanta, Washington DC, Chicago and Philadelphia.
Household purchases. Black Americans spend $51,639 on average annually on household consumer expenditures, led by purchases of apparel, personal care, food away from home, financial, tech-telecom (televisions, audio-visual media equipment, video/computer games, online entertainment games, streaming/downloading services, video hardware, cell phone services and home telephone services).
Eating out. Black households on average spent around $2,795 annually on food and non-alcoholic beverages away from home. We are 47 percent more likely than average to prefer picking up quick meals to cooking meals.
Financial services: Black households over-index for cash advances (142 percent above average); wire transfers (16 percent above average); check cashing (16 percent above average.); and personal loans (16 percent above average).