A new report from Nielsen, “The Increasingly Affluent, Educated and Diverse,” explores the “untold story” of African-American consumers, particularly Black households earning $75,000 or more per year. According to the report, Black people in this segment are growing faster in size and influence than whites in all income groups above $60,000. And as African-American incomes increase, their spending surpasses that of the total population in areas such as insurance policies, pensions and retirement savings.“These larger incomes are attributed to a number of factors, including youthfulness, immigration, advanced educational attainment and increased digital acumen. As these factors change African-Americans’ decisions as brand loyalists and ambassadors, savvy marketers are taking notice,” according to Cheryl Pearson-McNeil, Senior Vice President U.S. Strategic Community Alliances and Consumer Engagement, and Saul Rosenberg, Chief Content Officer at Nielsen.
It is projected that by 2060, the Black population will increase from 45.7 million to 74.5 million, with 17.9 percent of the U.S. population. From 2000 to 2014, the rate of African-American population growth was more than double the white rate of 8.2 percent, and 35 percent faster than the U.S. population as a whole.
According to Nielsen, the “youthfulness and vitality” among Black consumers are being driven by a diverse influx of immigrants, who make up one in 11 African-Americans, or 8.7 percent. Further, there has been substantial education growth among Blacks, with high school graduation rates exceeding 70 percent, outpacing the growth for all students nationwide.
In addition, Blacks are making gains in STEM (science, technology, engineering and mathematics) careers, helping to fuel income gains. The largest increase for Black households was in the number of households making over $200,000, an increase of 138 percent compared to a total population increase of 74 percent […]