Chinanews.com, August 12th. According to the U.S. Overseas Chinese News Network, the Selig Center for Economic Growth at the University of Georgia has released the "Multicultural Economy" report every year. In the past 30 years, the racial structure of the American population has become more diversified, and the purchasing power of all ethnic groups has also changed greatly.
According to the official website of the University of Georgia, in the latest 2021 report, the Seliger Economic Growth Center has made a new estimate of the purchasing power of various minorities.
The results show that Asians, Africans, Hispanics, and Indians are becoming more and more economically influential.
This means that companies can no longer take a one-size-fits-all approach to marketing products and services.
The report’s author, Jeff Humphreys, said: “As the US consumer market becomes more diversified, advertising, products and media must be tailored to each market segment.”
Based on data provided by the U.S. Census Bureau, the U.S. Bureau of Economic Analysis (USBureau of Economic Analysis) and other sources, the Seliger Economic Growth Center estimates that the purchasing power of African, Asian, and Indian consumers has been explosive in the past 30 years. The land growth has jumped from US$458 billion in 1990 to US$3 trillion in 2020.
Moreover, their share in the total purchasing power of the United States has also climbed from 10.6% in 1990 to 17.2% in 2020.
Humphreys said that the diversification of the US consumer market is driven by many factors, such as population growth, favorable demographic structure, increased entrepreneurial activities, and improved education levels.
He said: "One of the main factors supporting the growth of the minority ethnic market in the United States is the continuous improvement of African, Asian and Hispanic education levels, which has allowed more people to enter industries with higher average wages."
This report defines the purchasing power of American consumers as total income after tax.
Between 2010 and 2020, the overall purchasing power of American consumers increased from 11.3 trillion US dollars to 17.5 trillion US dollars, an increase of 55%.
During the same period, among ethnic minorities, the purchasing power of Asians increased the most, reaching 111%, while the purchasing power of Hispanics, Indians, and Africans increased by 87%, 67%, and 61%, respectively.
Including Native Hawaiians and Pacific Islanders, nearly 21 million Asians account for 6.3% of the total population of the United States, and their overall purchasing power reached US$1.3 trillion, exceeding the GDP of most economies in the world, second only to 13 nation.
In comparison, this amount is slightly higher than Spain's GDP and slightly lower than Australia's GDP.
In 2020, the top 10 states with the largest Asian American consumer markets are California, New York, Texas, New Jersey, Washington, Illinois, Virginia, Florida, Massachusetts and Hawaii.
From 2010 to 2020, the 10 states with the largest increase in the Asian consumer market are Washington, South Dakota, Utah, Vermont, Indiana, Montana, Texas, Oregon, North Carolina and Georgia.