How Do
Black People in America Spend $507 Billion Dollars Annually?
With $836 Billion
in Total Earning Power, only $321 Million Spent on Books while $7.4
Billion Spent on Hair and Personal Care Products and Services
New Buying
Power report shows black consumers spend as economy improves
New 16th edition shows expenditures rise to $507 billion
African-American
consumers are cautiously increasing their spending in some key product
categories, even as they continue to make adjustments in a slowly
growing economy. The finding comes from the soon to be issued 16th
annual edition of The Buying Power of Black America
report.
In 2009, black
households spent an estimated $507 billion in 27 product and services
categories. Thats an increase of 16.6% over the $435 billion
spent in 2008. African-Americans total earned income for 2009
is estimated at $836 billion.
The report,
which is published annually by Target Market News, also contains
data that reflect the economic hardships all consumers are facing.
There were significant declines in categories like food and
apparel that have routinely shown growth in black consumers
spending from year-to-year.
These
latest shifts in spending habits are vital for marketers to understand,
said Ken Smikle, president of Target Market News and editor of the
report, because they represent both opportunities and challenges
in the competition for the billions of dollars spent by African-American
households. Expenditures between 2007 and 2008 were statistically
flat, so black consumers are now making purchases they have long
delayed. At the same time, they re-prioritizing their budgets, and
spending more on things that add value to their homes and add to
the quality of life.
The median household
income for African-Americans dropped by 1.4% in 2009, but because
of students going out on their own, and couples that started their
lives together, the number of black households grew 4.2%. This increase
meant that many household items showed big gains. For example, purchases
of appliances rose by 33%, consumer electronics increased 33%, household
furnishings climbed 28%, and housewares went up by 37%.
Estimated
Expenditures by Black Households 2009
|
Total |
Apparel
Products and Services |
$29.3
billion |
Appliances |
2.0
billion |
Beverages
(Alcoholic) |
3.0
billion |
Beverages
(Non-Alcoholic) |
2.8
billion |
Books |
321
million |
Cars
and Trucks – New & Used |
29.1
billion |
Computers |
3.6
billion |
Consumer
Electronics |
6.1
billion |
Contributions |
17.3
billion |
Education |
7.5
billion |
Entertainment
and Leisure |
3.1
billion |
Food |
65.2
billion |
Gifts |
9.6
billion |
Health
Care |
23.6
billion |
Households
Furnishings & Equipment |
16.5
billion |
Housewares |
1.1
billion |
Housing
and Related Charges |
203.8
billion |
Insurance |
21.3
billion |
Media |
8.8
billion |
Miscellaneous |
8.3
billion |
Personal
and Professional Services |
4.1
billion |
Personal
Care Products and Services |
7.4
billion |
Sports
and Recreational Equipment |
995
million |
Telephone
Services |
18.6
billion |
Tobacco
Products |
3.3
billion |
Toys,
Games and Pets |
3.5
billion |
Travel,
Transportation and Lodging |
6.0
billion |
The Buying
Power of Black American 2010?
The Buying
Power of Black America is one of the nations most quoted
sources of information on African-American consumer spending. It
is used by hundreds of Fortune 1000 corporations, leading advertising
agencies, major media companies and research firms.
The report is
an analysis of consumer expenditure (CE) data compiled annually
by the U.S. Department of Commerce.
The CE data
is compiled from more than 3,000 black households nationally through
dairies and interviews. This information is also used for, among
things, computing the Consumer Price Index.
The report provides
updated information in five sections:
- Black Income
Data
- Purchases in the Top 30 Black Cities
- Expenditure Trends in 26 Product & Services Categories
- The 100-Plus Index of Black vs. White Expenditures
- Demographic Data on the Black Population
The 16th annual
report on The Buying Power of Black America also includes
a preview of findings from the forthcoming 2010 Census report.
Copies of The
Buying Power of Black America can be purchased from Target
Market News for $99 each.
Black
Men in America
(November 1,
2010)
Target
Market News
|