Spending statistics can offer valuable insight into how people choose and prioritize their wants and needs. Data from The Bureau of Labor Statistics (BLS) and other reputable sources can provide details on black spending power.
We have studied stats and surveys from plenty of sources to help you understand where black people spend the most money. In this blog post, we embark on an insightful journey to explore where Black people spend the most money.
Ethnic Hair and Beauty Products
Black Americans spend nine times more on ethnic hair and beauty products compared to the
general market.
Statistics continue to show what we have always known: black beauty is a huge business. Black women are leading the spending in this industry, spending around $2.5 billion in haircare alone and overspending the general market on personal care products and clothing.
The stat is valuable to black people and brands, showing the African Americans the funds they channel into this market. On the other hand, it reminds brands in this niche that African Americans are their primary market. Hence, they need to work towards meeting their goals.
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Electrical and Electronics
Electronic devices have become an integral part of modern life for many people, regardless of their racial or ethnic background. This includes smartphones, computers, tablets, televisions, gaming consoles, and other gadgets. Technological advancements, entertainment, communication needs, productivity, and personal interests drive the demand for these products.
And black people are highly digital — they’re more likely to purchase a smartphone and use their phone 12% more than white Americans.
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Premium TV Services
41% of Black consumers spend on premium TV services compared to 35% of the general population.
This statistic is crucial because it shows that black folks are likelier to subscribe to premium TV services than other ethnic groups. This means that black people are more likely to prioritize entertainment and leisure activities, which indicates a more significant trend in black spending power.
Home and Mortgage
52% of Black families own a home in the United States. This stat highlights the economic progress of black people in the United States. It shows that despite the economic disparities and systemic racism the African Americans have experienced, they have still been able to push through and achieve homeownership.
This is actually an essential point to consider when looking at Black consumer spending statistics. And why is that? It highlights that black folks have the financial capability to make purchases and invest in their future.
Luxury
Black consumers represented 8.7% of the total US luxury spending in 2019.
This statistic is an excellent reminder of African American consumers’ impact on the luxury industry. It shows the importance of recognizing and meeting the needs of this demographic, as they’re a significant portion of the total United States luxury spending.
It’s also a testament to the purchasing power of the black communities and the potential for brands to benefit from their patronage.
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Food and Dining
Whether dining out, buying groceries, or supporting food-related businesses, black people have diverse preferences and contribute to different food market segments.
Black consumers often support black-owned restaurants, food trucks, and culinary ventures that offer authentic flavors, cultural dishes, and unique dining experiences. There’s also a growing interest in healthier food options and sustainable practices within the food industry. And this reflects evolving consumer preferences among black consumers.
Financial Services
Black consumers’ spending extends to the realm of financial services. This includes banking, investing, insurance, and other financial products. Many black consumers seek financial institutions that understand their unique financial challenges and offer products and services tailored to their needs.
Additionally, there’s a growing interest in supporting black-owned financial institutions and initiatives that promote economic empowerment within the black community. Recognizing the potential of this market segment, some financial institutions have started developing specialized offerings and programs to attract and serve black consumers.
Entertainment and Media
Black consumers contribute significantly to the entertainment and media industry. They spend money on movies, music, streaming services, and other forms of entertainment that reflect their cultural experiences and feature black talent.
Films with diverse casts and stories highlighting black narratives have seen tremendous success at the box office, indicating the demand for inclusive representation. Black consumers also actively support black artists, musicians, and content creators. And these lead to the rise of black-owned media platforms and production companies.
Blacks General Spending Statistics
Black spending power reaches record $1.6 trillion, but net worth falls.
This is a powerful reminder of the immense economic potential of African Americans. It shows the immense purchasing power of black Americans and the potential for brands to tap into this demographic.
It also highlights the need to invest in black-owned businesses, creating opportunities for black entrepreneurs. Finally, it’s a testament to the economic power of black Americans and the potential for brands to benefit from it.
The data presented in this blog post underscores the substantial economic influence wielded by Black Americans and those of African heritage. The figures highlight their substantial contributions to the US economy, ranging from expenditures on personal care products and services to luxury goods. Black consumers are undeniably a pivotal driving force in various sectors. Notably, they have made notable investments in housing, financial services, and electronics.
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