Hispanic Market Opportunity
Hispanics are the largest growing ethnic group in the United States. According to the Pew Research Center's analysis of the 2014 U.S. Census data, a quarter of the Hispanic population, 14.6 million, are millennials (ages 18 to 33). Altogether, nearly six-in-ten Hispanics are millennials or younger.
The U.S. Latino community is the fastest-growing demographic in the country. Its purchasing power is estimated at over $1 trillion, which is nearly 10% of the U.S. gross domestic product. In fact, the Hispanic population is expected to contribute 45% to the nation’s growth by 2030 and will increase to 60% by 2050.
The introduction of the internet and technology has created an avenue for businesses to expand their communications outreach and brand awareness to all communities. The fact that the U.S. shares borderlines with Mexico, the Caribbean, and Cuba has also played a major role in the country's rapid population growth, increased buying power, and strong brand loyalty results. U.S. Latinos, Caribbean Latinos, and Mexicans are a very influential audience and create an enormous market opportunity.
As a result, developing bilingual communications and culturally relevant messages — is not only strategic, it is a necessity.
Asian-American Market Opportunity
The cultural identities of Asian-Americans are influencing mainstream consumer trends in food, technology, clothing, and beauty more than ever. According to the 2016 U.S. Census data, the nation's Asian population increased 3.4% since 2014 and is now up to 21 million as of July 1, 2015.
The Asian-American demographic accounts for five percent of the U.S. population, which has made this community a powerful force in the U.S. consumer market. is the. Data from the 2015 Nielsen Report indicates that the spending power of this demographic jumped from $718 billion to $770 billion in 2014 alone. The report projected that by 2019 they will reach $1 trillion, giving them the third largest spending prowess of all multicultural groups.
African-American Market Opportunity
The 2016 Packaged Facts data reports that the rapid growth of the Hispanic, Asian, and other multicultural communities in the U.S. has overshadowed the noticeable economic growth and influence of African-Americans. Within the past five years, their buying power has topped over $1.5 trillion.
Education has played a big factor in why the number of African-American households with an income of $100,000 or more has jumped 83%. The number of African-Americans employed in management and professional occupations saw a 26% increase, growing the field from 3.8 million to 4.8 million. Nearly two million African-Americans earn at least $75,000 annually.
As the population continues to increase, particularly with the influx of African and Caribbean natives, companies need to understand that this community is a diverse and nuanced populace with strong economic leverage. Special messages need to be developed that target to this demographic.
African-American consumers continue to demonstrate their significant purchasing power in the U.S., not only in terms of dollar figures, but in their unprecedented influence on mainstream culture, social media, and marketplace trends.
The Selig Center for Economic Growth reports that the African-American spending power is expected to reach $1.5 trillion by the year 2020—a 275% growth since 1990.