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African-Americans: Demographic and Consumer Spending Trends, 10th Edition
Now in its 10th edition, this report analyzes consumer spending and demographic trends for the African-American population in the United States. Packaged Facts defines the African-American population as including individuals who identify in Census Bureau data as “black or African-American alone,” regardless of whether they also identify as Hispanic. This definition is consistent with the data categories used by forecasting groups such as the Selig Center for Economic Growth at the University of Georgia. The terms “black” and “African-American” are used interchangeably in this report.
Methodology
The primary source of consumer data in this report is the Simmons National Consumer Study (NCS) for Winter 2015/2016, which was fielded between February and March 2016. The report uses the Spring 2006 NCS for trend analysis tables. On an ongoing basis, Simmons conducts booklet-based surveys of a large and random sample of consumers (approximately 25,000 for each 12-month survey compilation) who in aggregate represent a statistically accurate cross-section of the U.S. population.
U.S. Government sources include data from the Consumer Expenditure Survey (CES) of the Bureau of Labor Statistics (BLS). The CES tracks expenditures of “consumer units,” which are equivalent to Census Bureau “households.” This Packaged Facts report uses the term “households” for the sake of consistency. The report compares consumer expenditure patterns in the CES covering the 12-month period from mid-2014 through mid-2015 with those in the survey covering the 12-month period ending in mid-2012.
The primary Census Bureau source used in this report is the American Community Survey (ACS). Data from ACS date back to 2005. The latest available ACS data cover 2014. Census Bureau population estimates and projections as well as data from the Current Population Survey are also used where appropriate.
The report is also based on data from a range of industry sources, including company websites, press releases, trade publications, business newspapers and magazines and consumer blogs.
Executive Summary
Scope of the Report
Methodology
Insights and Opportunities
African-Americans Express Optimism About the Future
Many Reasons for Optimism
African-Americans Help Drive Growth in Financial Services
Life Insurance Especially Important to Black Consumers
Higher-Income Black Consumers Present Major Opportunity for Financial Firms
Traditional and New Media Both Succeed with Black Consumers
Population Trends
Black Population Nears 43 Million
African-American Population Maintains Steady Presence in America
Blacks Lose Ground to Other Multicultural Segments
Black Population a Multifaceted Demographic Segment
Nearly One in 10 Blacks Is Foreign-Born
Black Population Expected to Show Steady Growth Over Next Decade
South Still the Core of Black Population
Migration Continues to Shape Black Experience
African-Americans Have Significant Urban Presence
Demographic Trends
Blacks Key Segment of Younger Age Groups
Women More Predominant in Black Population
More African-Americans Achieve Educational Success
Professional Employment on Upswing
Black Women Predominate in Many Management and Professional Occupations
Number of Affluent Black Households Grows Faster Than Average
One in Three African-Americans Earn $50,000 and Over
African-American Household Structure More Diverse
African-American Buying Power
Expenditures by African-American Consumers Show Significant Growth
African-American Buying Power Concentrated in Large Urban Areas
Affluent Black Households Wield Significant Buying Power
African-American Buying Power Will Approach $1.5 Trillion in 2020
Recent Consumer Spending Trends
Black Consumers More Likely to Be Planning to Purchase Home Electronics
Black Households Differ from Other Households in Apparel Spending Priorities
Personal Care Items Get High Priority
Black Homeowners Solid Customers for Home Improvement Outlets
Spending on Appliances Up Sharply
Black Consumers Help Drive Auto Buying Boom
African-Americans Join Eating Out Trend
Use of Financial Services by African-Americans
Black Consumers Increase Use of Banking Services
African-Americans Important Growth Segment for Banks
Use of Credit Cards on the Rise, Especially Among Affluent Blacks
Department Store Cards Show Highest Growth
Dramatic Increase in Debit Card Use
African-Americans Place High Value on Life Insurance
More Black Consumers View Life Insurance as Investment Vehicle
Auto Insurance Registers Gain Among Black Consumers
Black Consumers More Likely to Buy Homeowners Insurance Directly from Company
Marketing Trends
Brands Can Reach Black Consumers on Social Media
Product Placement Gets Thumbs Up From Black Consumers
TV Advertising Attracts African-American Viewers
BET Retains Top Spot Among African-American Viewers
Insights and Opportunities
Topline Insights
Black Consumers Stay Confident
African-Americans Express Optimism About the Future
Many Reasons for Optimism
Table Top 10 African-American Markets by Region and Buying Power, 2014 (in billion $)
Market Trends and Opportunities: Financial Services
African-Americans Help Drive Growth in Financial Services
Life Insurance Especially Important to Black Consumers
Affluent Blacks Avid Consumers of Information about Financial Services
Higher-Income Black Consumers Present Major Opportunity for Financial Firms
Financial Services Marketers Focus on Building Ties with Black Community
Traditional and New Media Both Succeed with Black Consumers
Affluent Blacks Seen as "Missed Opportunity" for Financial Advisers
African-Americans Still Underserved by Financial Services Industry
Other Marketing Opportunities
African-American Spending Priorities Create Wide Range of Opportunities
Home Electronics
Clothing and Footwear
Personal Care Products and Services
Home Improvement and Home Furnishings
Automotive
Foodservice
Population Trends
African-American Population Growth Trends
Black Population Nears 43 Million
Table U.S. Population by Race and Hispanic Origin, 2000-2015 (in thousands and percent)
African-American Population Maintains Steady Presence in America
Blacks Lose Ground to Other Multicultural Segments
Table Multicultural Population by Race and Hispanic Origin, 2000 vs. 2015
Black Population a Multifaceted Demographic Segment
Table Profile of Black Population: Black Alone vs. Black Alone/In Combination with Other Race(s) and by Hispanic Origin, 2015 (in thousands)
Nearly One in 10 Blacks Is Foreign-Born
One in Six Blacks Will Be Foreign-Born by 2060
Black Population Expected to Show Steady Growth Over Next Decade
Table U.S. Population Projections by Race and Hispanic Origin, 2015, 2020 and 2025 (in thousands)
Where African-Americans Live
New York Has Largest Black Population
Table States with Largest African-American Populations, 2015 (in thousands)
South Is Home to Majority of Black Population
Migration Continues to Shape Black Experience
African-Americans Have Significant Urban Presence
Table Urban Areas Ranked by Size of Black Population, 2015
Demographic Trends
Age and Gender
African-Americans Younger Than Most Others
Blacks Key Segment of Younger Age Groups
African-Americans Help Shape Multicultural Shift
Women More Predominant in Black Population
Educational Attainment
More African-Americans Achieve Educational Success
Table Number of African-Americans with Associate's Degree or Higher, 2005 vs. 2014 (in thousands)
Wider On-Campus Gender Gap Creates Greater Educational Disparity
Gender Gap Keeps Widening
Occupational Trends
African-American Employment Concentrated in Service and Sales
Professional Employment on Upswing
Table Number of African-Americans in Professional and Related Occupations, 2005 vs. 2014 (in thousands)
Black Women Predominate in Many Management and Professional Occupations
Table Percent of African-American Men and Women Employed in Management, Business, Science, and Arts Occupations, 2014
Table Women as Percent of Those Employed in Management, Business, Science, and Arts Occupations: African-American vs. All, 2014
Household and Personal Income
Household Income Still Lags Behind the Average
Number of Affluent Black Households Grows Faster Than Average
Table Increase in Number of Households with Income of $75,000 or More: African-American vs. All Households, 2005-2014 (in thousands)
One in Three African-Americans Earn $50,000 and Over
Table Number of African-Americans Working Full-Time, Year-Round: By Level of Personal Income and Educational Attainment, 2014 (in thousands)
Table Number of Black Men Working Full-Time, Year-Round: By Level of Personal Income and Educational Attainment, 2014 (in thousands)
Table Number of Black Women Working Full-Time, Year-Round: By Level of Personal Income and Educational Attainment, 2014 (in thousands)
Household and Family Structure
African-American Household Structure More Diverse
African-American Households Are of Average Size
Marriage Less Common
Table Marital Status of Men and Women 15 Years Old and Over: African-American vs. All, 2014
Half of African-American Children Live With One Parent
Table Living Arrangements of Children under 18: African-American vs. All, 2015
African-American Buying Power
Trends in African-American Buying Power
African-Americans Register Above-Average Growth in Aggregate Income
Table Aggregate Personal Income: African-American vs. Other, 2014
Expenditures by African-American Consumers Show Significant Growth
Table Growth in Number of African-American and Other Households, 2004-2014 (in thousands)
Table Growth in Aggregate Consumer Expenditures: African-American vs. Other Households, 2004-2014 (in million $)
African-American Buying Power Reaches $1.3 Trillion
Table Buying Power of African-American Consumers, 2010-2015 (in billion $)
African-American Buying Power Concentrated in Large Urban Areas
Table Top 10 African-American Markets Ranked by Buying Power, 2014 (in billion $)
Table Number of African-American Households with Income of $75,000 or More in Top Ten African-American Markets, 2014
Projected Growth in African-American Buying Power
Factors Affecting Growth in African-American Buying Power
Table African-American Households by Income Level, 2005 vs. 2014 (in thousands)
Table Projected Growth in Buying Power of African-American Consumers, 2015-2020 (in million $ and % cumulative growth)
Consumer Spending Trends
Overview
Spending Priorities Differ
Table Key Differences in Spending Priorities of African-American vs. Other Households: By Expenditure Category, 2015
Recent Spending Trends Highlighted
Table Key Increases in Average Annual Consumer Expenditures of African-American Households: By Expenditure Category, 2012-2015
Consumer Spending Highlights: Home Entertainment
Black Consumers More Likely to Be Planning to Purchase Home Electronics
Table Percent of African-American vs. All Households Planning to Purchase Home Electronics Equipment: By Category, 2016
Table Percent of African-American vs. All Households Subscribing to Premium Cable Channels: By Name of Channel, 2016
Spending Highlights: Apparel and Personal Care Products
Table Percent of Total Consumer Expenditures Allocated to Apparel: African-American vs. Other Households, 2015
Apparel Purchases Total $26 Billion
Table Aggregate Expenditures by African-American Households for Apparel, 2015 (in million $)
Black Households Differ from Other Households in Apparel Spending Priorities
Personal Care Items Get High Priority
Spending Highlights: Home Improvement and Home Furnishings
Black Homeowners Increase Spending on Home Repairs and Maintenance
Black Homeowners Solid Customers for Home Improvement Outlets
Table Amount Spent on Home Improvements in Last 12 Months: African-American vs. Other Homeowners, 2016
Spending on Appliances Up Sharply
Table Aggregate Expenditures on Selected Categories of Home Furnishings and Equipment: African-American and Other Households, 2012 vs. 2015 (in million $)
Consumer Spending Highlights: Automotive
Black Consumers Help Drive Auto Buying Boom
Table Aggregate Spending on Automotive Vehicles: African-American vs. Other Households, 2012 vs. 2015 (in million $)
African-American Expenditures on New Cars and Trucks Up 51%
Table Aggregate Spending on New Cars and Trucks: African-American vs. Other Households, 2012 vs. 2015 (in million $)
Used Autos Retain Appeal
Table Aggregate Spending on Used Cars and Trucks: African-American vs. Other Households, 2012 vs. 2015 (in million $)
Consumer Spending Highlights: Insurance
Health Insurance Expenditures Up Dramatically
Table Aggregate Spending on Health Insurance: African-American vs. Other Households, 2012 vs. 2015 (in million $)
Spending on Vehicle Insurance Flat
Table Aggregate Spending on Vehicle Insurance: African-American vs. Other Households, 2012 vs. 2015 (in million $)
Spending on Life and Other Personal Insurance Declines
Table Aggregate Spending on Life and Other Personal Insurance: African-American vs. Other Households, 2012 vs. 2015 (in million $)
Consumer Spending Highlights: Food
African-Americans Join Eating Out Trend
Table Aggregate Spending on Food at Home and Food Away From Home: African-American vs. Other Households, 2012 vs. 2015 (in million $)
African-Americans Major Customer Base for Fast Food and Family Restaurants
Use of Financial Services
Banking Services
Black Consumers Increase Use of Banking Services
Table Number with Checking or Savings Accounts: African-Americans vs. Other, 2006 vs. 2016 (in thousands)
African-Americans Important Growth Segment for Banks
Credit and Debit Cards
Black Consumers Turn Away From Cash Transactions
Use of Credit Cards on the Rise, Especially Among Affluent Blacks
Table Number of Consumers Using Credit Cards: African-American and Other, 2006 vs. 2016 (in thousands)
Table Number of Households with an Income of $75,000 or More Using Credit Cards: African-American and Other, 2006 vs. 2016 (in thousands)
Department Store Cards Show Highest Growth
Table Number of African-American vs. Other Consumers Using Credit Cards: By Type of Card, 2006 vs. 2016 (in thousands)
Dramatic Increase in Debit Card Use
Table Number of African-American vs. Other Consumers Using Debit Cards, 2006 vs. 2016 (in thousands)
MasterCard Debit Card Gains Ground Among African-Americans
Table Number of African-American vs. Other Consumers Using Debit Cards: By Type of Card, 2006 vs. 2016 (in thousands)
Insurance
African-Americans Place High Value on Life Insurance
More Black Consumers View Life Insurance as Investment Vehicle
Table Type of Life Insurance Policy Owned by African-American Households, 2006 vs. 2016 (in thousands)
Auto Insurance Registers Gain Among Black Consumers
Table Number of African-American and Other Households with Automotive Insurance, 2006 vs. 2016 (in thousands)
Number of Black Households with Homeowners Insurance Shows Steady Growth
Table Number with Homeowners Insurance: African-American and Other Households, 2006 vs. 2016 (in thousands)
Black Consumers More Likely to Buy Homeowners Insurance Directly from Company
Market for Renters Insurance Explodes
Table Number of African-American and Other Households with Renters Insurance, 2006 vs. 2016 (in thousands)
Marketing Trends
Overview
Brands Can Reach Black Consumers on Social Media
Product Placement Gets Thumbs Up From Black Consumers
Table Effectiveness of Product Placement: African-American vs. Other Consumers, 2016
TV Advertising Attracts African-American Viewers
Table Effectiveness of Television Advertising: African-American vs. Other Consumers, 2016
BET Retains Top Spot Among African-American Viewers
Marketing Approaches
JPMorgan Chase Invests in African-American Entrepreneurs
Prudential Highlights African-American Businesses
Allstate Shares Stories "Worth Telling"
Wells Fargo Celebrates African-American Culture
State Farm Reaches Out to African-American Community