NEW YORK – With expansive buying power and unique consumption habits, multicultural consumers are an emerging force in the United States, according to Nielsen.

Today, African-American, Asian-American and Hispanic consumers combined account for more than 120 million people (38% of the total population). The U.S. Census reports that these groups are projected to increase by 2.3 million each year before becoming a numeric majority of the population by 2044.

Census projections indicate that Hispanics will experience the most growth among multicultural consumer groups, estimated to reach more than half of total population growth in the United States by 2020 and nearly 85% by 2060. African-American growth will accelerate to 18% of total population growth by 2020 and increase to 21% by 2060, while Asian Americans will represent 15% of total growth by 2020 and increase to 19% by 2060. Comparatively, non-Hispanic whites will decline: This demographic will see just a 7% growth share in 2020 that will become a decline of 6% by 2030.

As the number of multicultural consumers continues to grow, so will their purchasing power. Nielsen reports that U.S. multicultural buying power is already growing at an exponential rate compared to that of the total population, increasing from $661 billion in 1990 to $3.4 trillion in 2014. This is more than double the growth of total U.S. buying power.

Also, the young multicultural population will lead the way for sustained buying power growth. Last year, multicultural groups collectively represented greater than 50% of the population under age nine versus 35% of those 45-50 and 17% of those 80 or older. As a result, the effective years of buying power for African-Americans (42.3 years), Asian-Americans (52.3 years) and Hispanics (56.5 years) all exceed that of non-Hispanic whites (36.7 years).

So how can brands, retailers and other businesses reach this growing population? First, companies need to integrate multicultural insights into their core business strategies. In addition, marketing to Millennials and younger generations must be driven by multicultural insights, as these younger consumers present a prime opportunity for brands seeking to establish lasting, meaningful relationships.

Furthermore, location is key to reaching multicultural consumers. Today, some states with major metropolitan areas already have multicultural majorities — with the multicultural groups comprising more than 50% of the population in Hawaii, District of Columbia, California, New Mexico and Texas. Nevada, Maryland, Georgia, Arizona, Florida and New York are also approaching majority multicultural status. Reaching and relating to these consumer groups is not just important at the national, broader level, but also at a more personal, regional and hyperlocal one.

Be Among the First to Learn More
More insights about multicultural consumers and how the convenience and fuel retail industry can capture the purchasing power of these shoppers will be presented during the upcoming NACS State of the Industry Summit, April 14-16 in Chicago.

At the State of the Industry Summit, Juan Carlos Davila, Nielsen Hispanic market senior vice president and general manager, will discuss how investing in multicultural consumers can help convenience retailers ensure that they will remain competitive and relevant in this growing demographic.

Registration for the NACS State of the Industry Summit is complimentary for up to three individuals per retail member company, if your company submits data for the NACS State of the Industry Survey. More information about the survey, and an online submission form, is available online at nacsonline.com/soisurvey. The deadline to submit your company data has been extended until Thursday, April 2.