ROCKVILLE, Md., Sept. 26, 2016 /PRNewswire-USNewswire/ -- The well-documented rapid growth of Hispanic, Asian, and other multicultural segments of the U.S. population has at times overshadowed the noticeable economic growth and influence of African-Americans. Within the past five years, the buying power of African-Americans 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 buying power grew from $995 billion to $1.3 trillion for cumulative growth of 27%. Looking ahead, Packaged Facts forecasts cumulative growth of 16% between 2015-2020.
The rise of affluent households has helped bolster African-American buying power. 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 the buying power of affluent black households will continue to grow at a relatively rapid pace, finds Packaged Facts.
For the U.S. economy overall, the trickledown effect of this swelling prosperity has seen consumer expenditures by the average African-American household grow faster than consumer spending by other households (26% vs. 23%). 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.
African-American consumers 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 higher-income black consumers present 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/.
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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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SOURCE Packaged Facts