By CultureBanx Team
At 47.8 million strong, African Americans are the second-largest consumer group, presenting businesses with a $300 billion opportunity stake in this community. Despite being 13.4% of the U.S. population, Black households accounted for just under 10% of the nation’s total spending on goods and services in 2019, according to McKinsey. However, if companies interpret this data as proof that there’s little profit in serving Black consumers they are making a multi-billion mistake.
Why This Matters: In 2019, consumer expenditures by Black households totaled approximately $835 billion, and combined spending by all Black households has increased 5% annually over the past two decades. When you read that African Americans have $1.4 trillion in spending power, it’s an incredibly impressive number. Even more so when you realize that’s more money than Spain, Mexico, Netherlands, Turkey, or Switzerland generate annually. It’s incredible to think that the collective purchasing power of Black Americans is greater than most developed nations.