Nielsen Looks at African-American Consumers

RADIO ONLINE | Friday, September 18, 2015 | 10:29pm CT

According to Nielsen's annual African American Consumer Report, African-American consumers are making gains on multiple fronts from education to income to social media and civic engagement -- becoming increasingly affluent, influential and culturally diverse. From 2000 to 2014, the nation's Black population grew 35%, more quickly than the total population and at more than double the 8.2% growth rate of the White population. By 2060, the Black population will increase from 45.7 million to 74.5 million, comprising 17.9% of the total U.S. population.

The youthfulness and vitality of Black consumers, Nielsen found, bolstered by an influx of affluent and educated immigrants, is amplifying buying power and expanding influence across a wide spectrum of services and goods in the U.S. mainstream. Digitally enabled and culturally connected, the Black consumer story is now receiving much overdue attention.

Some of the key findings include:

An immigrant upswing
Black immigrants now account for 8.7% of the nation's Black population, or one in every 11 African-Americans, which is nearly triple the share in 1980. The influx of diverse immigrants -- who will account for one in six African-Americans by 2060 -- is enriching the cultural mix of U.S. Blacks and contributing to an overall rise in consumer education and affluence.

Historic education growth
The percentage of Black high school graduates enrolled in college jumped last year to 70.9%, exceeding that of both Whites and Hispanics. Further, high school graduation rates for Black students rose to over 70%, which outpaced the growth for all students nationally. Blacks are also making progress in STEM (science, technology, engineering and mathematics) careers. Rising education rates for young Blacks and inroads into STEM professions will fuel steady income increases and help secure their place in the future U.S. workforce.

Advancing incomes
African-American income growth rates outpaced that of non-Hispanic Whites at every annual household income level above $60,000. The largest increase for African-American households occurred in the number of households earning over $200,000, with an increase of 138%, compared to a total population increase of 74%.

Youthful influencers
Due to a combination of youth and rising cultural influence, African-Americans are creating mainstream trends in music, television, movies and more. Marketing to Millennials and younger generations must include messages to reach African-American youth, as the average age of African-Americans is 31.4 years compared to 39 years for the non-Hispanic White population or 36.7 years for the total population.

Heavy consumers of all media types
The year 2015 represents a tipping point for African-Americans. As voracious media consumers, powerful cultural influencers experiencing burgeoning population growth create an unprecedented impact across a broad range of industries, particularly in television, music, social media and social issues.

Digitally-empowered communicators
Due to the widespread usage of the Internet and social media, consumers are collectively responding to fast-breaking news events. Black consumers are adroit and well-informed commentators who are making their voices heard, and in many cases, defining and leading the national conversation on important social issues.

Southern Exposure
Black population metro hubs are continuing to shift to the South, with the most intensive growth in the number of African-American households with annual incomes over $100,000. Metro areas such as Baton Rouge, Columbus GA, Augusta GA and Aiken SC are cities newly included in the list of Top 10 designated market areas (DMAs) for penetration of these households.

Culturally-connected consumer
Black consumers' buying patterns showcase a focus on family and cooking ingredients tied to cultural traditions. There is an expectation for the brands purchased to reflect certain social values: 40% of Blacks expect brands to support social causes. Entertaining is very important in the African-American community. Annual events such as family reunions, cultural festivals and alumni gatherings connect Blacks in a unique way that focuses on fellowship and is cross-generational.

In fact, African-American households spend more on basic food ingredients and beverages and tend to value the food preparation process, spending more time than average preparing meals. Other popular buying categories include fragrances, personal health and beauty products, as well as family planning, household care and cleaning products.