Monday March 15, 2010

Demographic Shifts Present Retail Opportunities

New York — Demographic shifts in the U.S. are predicted to generate an additional $221 billion in the multicultural CPG market, according to The Nielsen Co.

Currently, Asian-Americans, African-Americans and Hispanics account for $299 billion in CPG sales. By 2020, Nielsen estimates a 25 percent increase in that figure and another 50 percent jump by 2050 to $520 billion in sales.

To best capture this growing market, Nielsen suggests retailers recognize trends associated with each ethnic group.

According to the researcher, African-Americans represent 11 percent of total CPG spending. Data from Nielsen shows they tend to spend more than the general population in drug and dollar stores and buy fewer items with promotional prices or with coupons. This group also has the highest TV usage of any demographic at 80 hours each week per household and often use mobile Internet, according to Nielsen.

Asian-Americans represent three percent of total spending and 5.5 percent of dollars spent in warehouse clubs. The researcher says they tend to watch less TV than other consumer groups.

Hispanic households represent 11.8 percent of spending and tend to shop more in mass merchandise and warehouse clubs, according to Nielsen. They watch more broadcast and satellite TV than other population segments and display a higher usage of mobile Internet.