By now, you have heard the reference of Black Dollars or Black spending power so often that it is starting to become more of a sound bite.
"Black consumers in the U.S. present a yearly average of $1.4 Trillion in consumer spending power".
It has become common knowledge that Black people are a leading consumer market in the U.S. Few sources can explain why until now. Read On.
In 2021, Selig Center for Economic Growth at the University of Georgia released its annual minority buying power report. It gives us a first look at the gains and contributing factors of disposable income in the U.S. by ethnicity. See our takeaways on how U.S. Black consumers compare to the total U.S. spending power of $17.5 Trillion (ref UGA, 2020).
Money Power Respect
- U.S. Black buying power has increased by 61% between 2010 and 2020.
- In 2020, during the height of the global pandemic, COVID - 19 trends saw Black consumers as core drivers of total U.S. online retail gains.
- Between 2020 and 2021, Black consumers took the lead in holiday spending (nearly 20% more than other races).
- Total U.S. Black spending power rosed at $1.6 Trillion in 2020
Everywhere You Look
- States including Hawaii, Idaho, & Washington saw a 10-year lift of 104%+ in Black buying power, while North Dakota reported a 316% increase.
Started From the Bottom Now We Here!
- The UGA cited increases in population, advanced academic degrees, and lucrative incomes as factors that resulted in the rise in of buying power.
- In 2019, the U.S. Black population grew to 46.8 million (14% of the total U.S. population).
The Wrap Up
These increases are exciting! Recent consumer trends and outcries for social equity have even influenced top retailers to extend advertising dollars to Black-Owned media networks and make room on their shelves. In context, Black consumerism contributes to 9% of the U.S. total. Regardless, Black consumers can potentially create a significant impact when they shift their dollars methodically and collectively.