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. That's 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
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
Source: Target Market News, "The Buying Power of Black American -
2010"
"The Buying Power of Black America" is one of the nation's 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.
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