Black consumers are an increasingly important demographic regardless of the product you’re selling.
Black consumers may only be a small proportion of all the consumers you’re marketing to, but marketing to them is important for a variety of reasons. Their potential for a huge increase in disposable income over the next several years combined with their cultural impact means that you should start marketing specifically to Black consumers immediately.
How The Spending Power of Black People Is Changing
Consumer spending among Black consumers is expected to increase dramatically in the coming decade. According to McKinsey, Black consumers currently spend around $900 billion per year, but that number will increase to $1.7 trillion by 2030.
American consumers as a whole spend about $6.213 trillion per year. That means that Black consumers make up about 14.5% of spending in the U.S., which is slightly higher than their proportion of the population.
There’s perhaps no greater testament to the power of this demographic than the fact that some of the largest companies are investing heavily in marketing to them. For example, Target is spending $2 billion on Black-owned suppliers by 2025. Yes, when companies make investments like these, there’s likely a public relations element, but they also know that these brands will appeal to both Black consumers and their entire consumer base.
More Than Just Their Spending Power
The thing that makes Black consumers so important is not just their spending power, but the fact that, historically, they’ve had a strong influence on commercial trends. There are countless examples of popular hairstyles, clothing brands, music, and other products first becoming popular among Black people before spreading to American culture as a whole.
