Black Households and the Opportunities They PresentTags: 2010 census, consumer, families, migration, population
SUBMITTED BY: Peter Francese, Founder, "American Deomgraphics"
Since the release of the 2010 U.S. census, much has been written about the growing numbers of Hispanics and Asians. But what has gotten lost in the story about America’s multicultural makeup is that the African-American segment remains an important growth opportunity for many marketers. A closer analysis of household formation reveals insights that marketers should consider during planning season.
According to the 2010 census there are 82.3 million non-Hispanic White households; 14.1 million Black households; 13.5 million Hispanic households; and 4.6 million Asian households out of a total 116.7 million households nationwide. This 2010 census count of households by race reveals two important considerations about African-American consumers’ comparison growth and the absolute numbers vs. other multicultural segments:
- Black household growth has outpaced that of total households in the U.S. in the last decade (17 percent and 11 percent, respectively).
- Although Hispanics are the largest minority population segment, there are actually more African-American households in the U.S. than any other minority group.
For marketers of household products, goods and services, this suggests that the African-American market is a growth segment worth investing in. In that same vein, it is just as interesting how the composition of Black households is evolving in terms of size and formation.
While Black households became smaller over the past decade, they are still slightly larger than the average for total households. Average household size among African Americans was 2.74, according to the 2000 census, compared with 2.63 in the 2010 census. For total households, the numbers were 2.59 in 2000 and 2.58 in 2010. Some reasons for smaller household size over the past decade have been the growth in Black married households and the decline in Black married couples with children. These changes in household composition reveal trends that marketers of household products, furnishings and appliances would be wise to note.
A greater percentage of Black households are in their peak household formation and spending years than are all U.S. households. A solid 44 percent of Black households are either Millennials or Gen Xers, compared with 38 percent of all households. The same percentages of each (40 percent) are Baby Boomers, where income peaks. They represent a strong block of prime shoppers for various types of products.
The Opportunity: Understanding the census data on African-American household size, composition and formation outlined above allows savvy marketers to see trends and growth opportunities as they evolve. The smaller household size and increase in households without children translate into more per capita income per household and greater amounts of discretionary income for goods and services. The large number of Black households reflects a portrait of evolution, providing marketers with a pathway toward growth.