Multicultural consumers are the fastest growing segment in the United States. In addtion, they provide a longer brand loyalty.
Multicultural Consumers Have a Greater Lifespan
Considered the fastest growing US population, multicultural consumers have another advantage in the market. They are younger and live longer than the average American. This high growth segment allows businesses to cultivate and build relationships based on confidence and brand loyalty, according to Nielsen’s recent study: The Multicultural Edge; rising Super Consumers.
In 2014, multicultural consumers in the United States collectively accounted for more than half the population under the age of 9, compared to 35% of those between 45-50 years of age and only 17% aged 80 or older.
This data illustrates how each generation is revealing more multicultural features each day. In a global economy, America’s youth are primarily from the ethnic population (African American, Asian American or Hispanic.) This challenging younger generation has turned into an advantage for the growth of many of the goods and consumer services in the United States.
Multicultural Consumers Have A Lower Average Age
According to Census data, the average age of the US population is 37.4 years. This is lower than the age of the average adult in Russia (38.2), the United Kingdom (40.1), France (40.4), Germany (45.1) and Japan (45.6). The significant difference in the average age of the US multicultural population (30.5), compared to that of non-Hispanic whites (42), shows how the multicultural population is driving the vitality of this nation’s economy.
Multicultural consumers hold more profitability for brands because of their longer life expectancy
Youth is not the only driver of market opportunity. Besides having a longer life expectancy, multicultural consumers hold a higher return for brands because of their life expectancy rate, which is substantially higher than that for non-Hispanic whites. Life expectancy for multicultural consumers is at its highest, according to the Center for Disease Control and Prevention (CDC).
As a result, the years of active buying power for African Americans is 42.3 years, 52.5 years for Asian Americans and no less than 56.5 years for Hispanics. These numbers all exceed the active buying rate for non-Hispanic whites (36 .7 years).
Investing wisely in multicultural consumers now will lead to many more years of spending and brand loyalty throughout their lives, and can significantly increase the return on investment for United States businesses.