Will Marketers

Accelerate Shift To

Lead with Multicultural

Segments?

The WNH Segment Marked Its First Population Decline in 2016, Reaching the Projected Census Inflection Point One Full Decade Early

2

Projected First WNH Decline = 2026

Actual First WNH Decline = 2016

Source: American Community Survey 1-year estimate and 2012-14 National Census Projection based on 2010 census

2010 U.S. Decennial

Census Projections

2010 U.S. Annual ACS

Population Estimate

Brands’ Strength Among Multicultural Is More Essential Than Ever as the Overall US Pop Growth Slows and 100% of the Expansion Is

Driven By Multicultural Segments

32017 © Santiago Solutions Group Inc.www.SantiagoSolutionsGroup.com 818.509.5901

Source: SSG Analyses of American Community Survey (ACS 1-year estimate; 2014-2016)

2,561.8

1,708.7

Source of Growth 2014-15 vs 2015-16

(000’s)

• 100% of U.S. Population growth in 2016

came from Multicultural segments

• Over half (51%) of growth in 2016 came

from Hispanics, up from 47% in 2015

• The Other/Mixed Race segment generated

25% of the entire U.S. population growth.

-853K-33%

White Non-Hispanic Hispanic African American Asian/NHPI Other/Mixed Race

100%

of U.S.

Growth

is MC

Other/Mixed Race Followed By Asian And Hispanic Segments Continued To Fuel the Overall US Population

The U.S. Multicultural population increased 1.4%

or 1.8M from 2015 to 2016.

o Hispanic increased 1.6% or 903K

o Other/Mixed Race soared 4.4% or 447K

o Asian* jumped 1.7% or 295K

o African American grew slightly 0.3% or

120K

On the other hand, White Non-Hispanic

population decreased -0.3% or -55K

2017 © Santiago Solutions Group Inc.www.SantiagoSolutionsGroup.com 818.509.59014

Year-over-Year Growth

Source: SSG Analyses of American Community Survey (ACS 1-year estimate; 2014-2016) *Includes Asian/Native Hawaiian/Pacific Islander origin

U.S. Births Continued to Decline In The Last Year Except Among Asian/Other Mixed Race Segments

There were 37.4 K fewer births in 2016

compared to 2015

o 66% of the decline comes from White

NH

o 27% of the decline comes from African

American

o Only 7% of the decline comes Hispanic

• Asian & Other/Mixed Race segment births

increased by 77.2K

2017 © Santiago Solutions Group Inc.www.SantiagoSolutionsGroup.com 818.509.59015

Source: SSG Analyses of National Vital Statistics Report 2014-2016 – U.S. Department of Health & Human Services

Year-over-Year Growth2015-2016

-0.9%

-0.9%

-3.6%

-5.2%

23%(000’s)

Since 2010, Multicultural Population Has Grown 35x Times Faster Than White Non-Hispanics

62017 © Santiago Solutions Group Inc.www.SantiagoSolutionsGroup.com 818.509.5901

Source: SSG Analyses of American Community Survey (ACS 1-year estimate; 2010-2016)

Annual Growth Rate 2010-2016*All Multicultural segments have much faster

growth rates than White NH segment which

has been basically flat since 2010.

o Hispanics growth is 22 times faster than

that of White NH and more than 2 times

faster than African Americans.

o The growth rate of African Americans is 9

times faster than White NH.

o Asian/NHPI growth rate is 30 times faster

than White NH.

o Other/Mixed Race grew at the fastest rate,

32 times faster than White NH

*CAGR 2010-16

In 2016, 4 Of 10 Are Multicultural Up From 3 in 10 in 2010

• The share of multicultural segments increased from 31% in 2010 (87M) to 39% in 2016 (126M)

• In 2016, Hispanics made up 17.8% of the U.S. population, up from 16.3% in 2010

o The Hispanic population grew from 50.5M in 2010 to 57M in 2016

• The African American segments continues to represent about 12% of the total U.S.

• The Asian segment in now 5.5% of the U.S. up from 3.7% in 2010 and Other/Mixed Race segment is only 3.3% but is expanding faster than any other segment.

• Since 2010, White NH share of the population decreased from 69.1% to 61.1%

o White NH population only increased by about 773,000 from 2010-2016

2017 © Santiago Solutions Group Inc.www.SantiagoSolutionsGroup.com 818.509.59017

Share of Base 2000 Share of Base 2010 Share of Base 2016

White Non-Hispanic Hispanic African American Asian/NHPI Other/Mixed Race

Source: SSG Analyses of American Community Survey (ACS 1-year estimate; 2000,2010,2016)

39%36%31%

By 2027, 44% Of The U.S. Population Will Be Multicultural Up from 40% in 2018

2017 © Santiago Solutions Group Inc.www.SantiagoSolutionsGroup.com 818.509.59018

Current & Projected Population (Millions)

Source: SSG Projections Based on American Community Survey (ACS 1-year estimate; 2010-2016 Growth Rate)

SEGMENT 2016 2018E 2027E

Total Population 323.1 100% 328.4 100% 355.0 100%

White NH 197.5 61% 197.7 60% 198.7 56%

Multicultural 125.6 39% 130.7 40% 156.3 44%

Hispanic 57.4 18% 59.9 18% 72.6 21%

African American 39.7 12% 40.4 12% 43.7 12%

Asian/ NHPI 17.9 6% 19.0 6% 24.8 7%

Other/ Mixed Race 10.7 3% 11.3 4% 15.1 4%

The Hispanic Population will reach 60M in 2018 and grow

another 13M in 10 years

The Asian Population will

grow another 7M reaching 25M

The Other/Mixed Race population will grow another 4M to reach 15M

92017 © Santiago Solutions Group Inc.www.SantiagoSolutionsGroup.com 818.509.5901

Santiago Solutions Group

@Carlos_SSG

818.509.5901

@Santiago_Group

santiagosolutionsgroup.com/subscribe/

Carlos@SantiagoSolutionsGroup.com

Stay current with SSG studies and insights at: www.SantiagoSolutionsGroup.com/Media-Center/Newsletters

SantiagoSolutionsGroup.com