Demographics on African Americans Spending Habits

Demographics on African Americans Spending Habits

According to U.S. Census Bureau, the Black U.S. population is at approximately 34.5 million. Males represent 48% of that number, and females comprise 52%. The U.S. Black population has grown over the last 20 years. The African American population is 12.2% of the total U.S. population in 2000, and African Americans will account for 12.2% of the U.S. population by the end of year 2000.

A number of key characteristics distinguish African American households from other ethnic households in the U.S: Black households tend to be younger than White households; the average age of the Black head of household was 45.1 years. The average number of children under age 18 in Black households was in 1.0; with the average household number for Blacks were 2.8.

Income growth and the poverty reduction levels among black households have been at record-setting levels in the past two years. The poverty rate for African Americans continued to be the lowest since these statistics have been recorded. Nearly one-third of 8.4 million African American families reported total money income of $50,000 or more in 1999.

In 1999, according to the U.S. Census Bureau, approximately 77% of African Americans 25 years and older had completed high school or a high level of education. More than 1 in 7 had earned at least a bachelor's degree, with a higher proportion of women than men.

The purchasing behavior of African Americans has attracted the attention of marketers not only because of the billions of dollars they contribute to the marketplace, but because the differences in how they behave offers marketing opportunities to companies. African American consumers spent $491 billion on products and services. As most companies vie to increase their share of this segment, targeting it has become significant in affecting the profit margins of consumer goods companies.

The Selig Center projects that the nation's black buying power will rise from $307.8 billion in 1990 to $572.1 billion in 2001, up by 85.9 percent. In 2001, the nation's share of total buying power that is black will be 8.1 percent, up from 7.4 percent in 1990.

Perhaps the most substantial and continued growth of black buying power increase is due to the number of jobs across the nation. Employment opportunities have improved for African Americans. The Census Bureau indicates that, in the past decade, the gap in high-school completions between blacks and whites in the 25 to 29 year old age group narrowed to the point where there was no statistical difference.