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October 2007

News & Media

African-American Consumers Increasingly More Popular to Marketers 
October 22, 2007 

NEW YORK – The projected growth of the African-American population will provide new opportunities for retailers that are able to deliver products and services they seek, reports the Nielsen online publication Consumer Insight, noting that African-American consumers make up 12 percent of the U.S. population and represent the second largest ethnic group after Hispanics.

Consumer Insight reports that the Selig Center Buying Power Study found that the potential of the African-American market also includes the comparatively large household size (3.2 members versus the 2.6 U.S. average), a high degree of home ownership (43 percent) and education level, which links directly to earning potential.

As for shopping habits, a higher proportion of African-American consumers are more likely to visit convenience-oriented formats like drug, dollar and convenience/gas stores, according to the study.

African-American shoppers purchase different types of items, which accounts for variances in basket size and trip frequency. For example, 59 percent of African-American households purchased ethnic health and beauty aids, compared with 2 percent of non-African-American households. Other product categories that had big variances by ethnicity include feminine hygiene products, fresheners and deodorizers, dried vegetables and grains, flour, baby needs, refrigerated juices and drinks, non-carbonated beverages, gum and table syrups and molasses.

African-American consumers also spent more than the remaining U.S. households in a number of large product categories, such as baby food, shelf stable juices and drinks, frozen unprepared meat/poultry, seafood and packaged deli meat.