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Copyright © 2012 The Nielsen Company. Confidential and proprietary. Copyright © 2012 The Nielsen Company. Confidential and proprietary.
The Growth Majority: Insights into the buying behavior of Multicultural consumers
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
The Growth
Majority
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Ethnic Households will be the Majority by
2050 Distribution of the U.S. Population
70%
4%
13%
13%
35%
65%
5%
14%
16%
35%
60%
6%
14%
19%
60%
7%
14%
23%
51%
8%
15%
27%
54%
46%
9%
15%
30%
54%
2050 2040 2030 2020 2010 2000
Hispanic Black Asian White Non-Hispanic
Source: US Census
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
The White Non-Hispanic Population Skews
Much Older Today
5%
13%
15%
68%
5%
16%
22%
56%
5%
17%
18%
60%
6%
14%
19%
60%
5%
12%
13%
68%
4%
9%
7%
79%
Population Age By Ethnicity
55+ 35-54 18-34 12-17 Under 12 Total
Asian Black Hispanic White Non-Hispanic
Source: US Census
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Nearly 92% of the nation’s population growth
came from minorities of all types
Source: USA TODAY / U.S. Census Bureau
Hispanics
Blacks
Whites
Asians
2010 versus 2000
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“Non-Whites & Hispanics accounted for 98%
of the population growth in large metro areas”
71
63
57
82 77
73
86 82 80
'90 '00 '10 '90 '00 '10 '90 '00 '10
Source: State of Metropolitan America - Brookings
Large metros Small metros Non-metro areas
% U.S. White Population
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
And some other amazing factoids to drive
your multicultural engagements
7163
57
8277
73
8682 80
'90 '00 '10 '90 '00 '10 '90 '00 '10
Source: State of Metropolitan America - Brookings
Large metros Small metros Non-metro areas
“42 of 100 largest
metros lost white
population & 22 are
“majority minority”
populations”
“Nearly half of
Hispanics live in
just 10 large
metros, but those
accounted for only
36% of Hispanic
growth”
“Asians even more
concentrated with
1/3rd living in just
three metros: Los
Angeles, New York,
& San Francisco”
“Atlanta, Dallas &
Houston led all
metros in Black
population gains,
while populations
dropped in New
York, Chicago &
Detroit”
% U.S. White Population
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
“Hispanic shoppers bring increased buying
power as numbers rise”
$1.3
$1.0 Trillio
ns
2010 2015
9%
4%
1980 2009
Hispanic Buying Power
Latinos of Mexican heritage represent the single
most influential segment of the Hispanic market
w/ $616 billion in buying power
Source: Package Facts (estimates) via Convenience Store News
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
$40
$45
$50
$55
Hispanic - Spanish
Prefered
Hispanic English
Preferred
White Non-Hispanic
140
145
150
Hispanic - Spanish
Prefered
Hispanic - English
Preferred
White Non-Hispanic
$6,500
$6,750
$7,000
$7,250
$7,500
Hispanic - Spanish
Prefered
Hispanic - English
Preferred
White Non-Hispanic
22%
28%
Hispanic - Spanish
Prefered
Hispanic - English
Preferred
White Non-Hispanic
Total Retail Channels
Shopping Trips Per Household Basket Ring Dollars Per Trip
Basket Ring Dollars Per Household % Dollars on Deal
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips
Hispanics shop less often, but spend more
per trip & annually, and less deal prone
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
African Americans shop often, spend less
per trip & overall, and less deal prone
$30
$35
$40
$45
African American Non-African American
140
145
150
155
160
165
170
African American Non-African American
$5,500
$6,000
$6,500
$7,000
African American Non-African American
15%
20%
25%
30%
African American Non-African American
Total Retail Channels
Shopping Trips Per Household Basket Ring Dollars Per Trip
% Dollars on Deal
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips
Basket Ring Dollars Per Household
11
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Asians shop more often, spend slightly less
per trip & are more deal prone
$42
$44
$46
$48
Asian White Non-Hispanic
140
145
150
155
Asian White Non-Hispanic
$6,500
$6,750
$7,000
Asian White Non-Hispanic
22%
26%
30%
34%
Asian White Non-Hispanic
Total Retail Channels
Shopping Trips Per Household Basket Ring Dollars Per Trip
% Dollars on Deal
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips
Basket Ring Dollars Per Household
12
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
English-preferred exhibit trip preference within
supercenters & mass-merchandisers
202122232425262728
Hispanic - Spanish
Prefered
Hispanic - English
Preferred
White Non-Hispanic
46
51
56
Hispanic - Spanish
Prefered
Hispanic - English
Preferred
White Non-Hispanic
10
11
12
13
14
15
Hispanic - Spanish
Prefered
Hispanic - English
Preferred
White Non-Hispanic
12
13
14
Hispanic - Spanish
Prefered
Hispanic - English
Preferred
White Non-Hispanic
Shopping Trips Per Household
Grocery Stores Supercenters
Mass Merchandisers Drug Stores
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips
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Except for drugstores, African Americans
make fewer trips to major channels
20
21
22
23
24
25
26
African American Non-African American
50
55
60
African American Non-African American
10
11
12
13
African American Non-African American
12
13
14
15
16
African American Non-African American
Shopping Trips Per Household
Grocery Stores Supercenters
Mass Merchandisers Drug Stores
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips
14
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Asian households more frequent shoppers
in all major channels but supercenters
16
18
20
22
24
26
28
Asian White Non-Hispanic
56
57
58
59
60
Asian White Non-Hispanic
10
12
14
16
Asian White Non-Hispanic
12
13
14
15
16
Asian White Non-Hispanic
Shopping Trips Per Household
Grocery Stores Supercenters
Mass Merchandisers Drug Stores
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips
15
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
$55
$60
$65
$70
Hispanic - Spanish
Preferred
Hispanic - English
Preferred
White Non-Hispanic
$42
$43
$44
$45
$46
$47
$48
Hispanic - Spanish
Preferred
Hispanic - English
Preferred
White Non-Hispanic
$45
$50
$55
Hispanic - Spanish
Preferred
Hispanic - English
Preferred
White Non-Hispanic
$23
$24
$25
$26
Hispanic - Spanish
Preferred
Hispanic - English
Preferred
White Non-Hispanic
Basket Ring Dollars Per Trip
Grocery Stores Supercenters
Drug Stores Mass Merchandisers
Hispanics offset less frequent shopping by
spending more per trip
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
$50
$55
$60
$65
African American Non-African American
$30
$35
$40
$45
African American Non-African American
$40
$45
$50
African American Non-African American
$20
$21
$22
$23
$24
$25
African American Non-African American
Basket Ring Dollars Per Trip
Grocery Stores Supercenters
Drug Stores Mass Merchandisers
African Americans spend less per trip in
major retail channels
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
$50
$55
$60
$65
Asian White Non-Hispanic
$30
$35
$40
$45
Asian White Non-Hispanic
$40
$45
$50
Asian White Non-Hispanic
$20
$22
$24
$26
$28
Asian White Non-Hispanic
Basket Ring Dollars Per Trip
Grocery Stores Supercenters
Drug Stores Mass Merchandisers
Asians offset their frequent shopping by
spending less per trip
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
5
10
15
Hispanic - Spanish
Preferred
Hispanic - English
Preferred
White Non-Hispanic
5
10
15
Hispanic - Spanish
Preferred
Hispanic - English
Preferred
White Non-Hispanic
5
10
15
Hispanic - Spanish
Preferred
Hispanic - English
Preferred
White Non-Hispanic
Shopping Trips Per Household
Warehouse Clubs Dollar Stores
Convenience/Gas
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips
Hispanics measure up well to White Non-
Hispanics in these channels
19
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
5
10
15
20
25
African American Non-African American
5
10
15
African American Non-African American
5
10
15
20
African American Non-African American
Shopping Trips Per Household
Warehouse Clubs Dollar Stores
Convenience/Gas
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips
African Americans are more frequent
shoppers in dollar stores & c-stores
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
5
10
15
Asian White Non-Hispanic
5
10
15
Asian White Non-Hispanic
5
10
15
Asian White Non-Hispanic
Shopping Trips Per Household
Warehouse Clubs Dollar Stores
Convenience/Gas
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips
Asians very frequent club shoppers, but not
in dollar or convenience/gas
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Hispanic households spend more on basic
food ingredients Hispanic Nielsen Edible Category Dollar Index
Dried Vegetables & Grains 221
Shortening Oil 152
Baby Food 150
Shortening Oil 138
Canned Milk & Creamers 134
Shelf-Stable Juices & Drinks 133
Eggs 130
Refrigerated Juices & Drinks 129
Shortening Oil 129
Gum 127
Purchase index:
share of Hispanic $
sales divided by U.S.
household $ share
X 100
Source: Nielsen Homescan,
52 Weeks Ending 12/31/2011;
UPC-coded
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Hispanic households spend more on beauty
care & categories for babies Hispanic Nielsen Non-Edible Category Dollar Index
Hair Care 154
Women’s Fragrances 149
Grooming Aids 144
Disposable Diapers 144
Family Planning 142
Photographic Supplies 142
Baby Needs 137
Sanitary Protection 129
Cosmetics 127
Laundry Supplies 124
Source: Nielsen Homescan,
52 Weeks Ending 12/31/2011;
UPC-coded
Purchase index:
share of Hispanic $
sales divided by U.S.
household $ share
X 100
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Language preference tied to category spending
Dried Vegetables & Grains
Shortening Oil
Men's Toiletries
Baby Food
Prepared Foods – Dry Mix
All Nielsen Categories
Charcoal & Accessories
Pet Food
Fzn Pizza & Snacks
Diet Aids
Wine
Spanish-Preferred HouseholdsEnglish-Preferred Households
Share of Hispanic dollars
by preferred language
English-
preferred
households
spend more on
general population
categories
important
Source: Nielsen Homescan,
52 Weeks Ending 12/31/2011;
UPC-coded
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
African American households spend more
on basic food ingredients & beverages African American Nielsen Edible Category Dollar Index
Frozen Meat, Poultry, Seafood 167
Dried Vegetables & Grains 164
Coolers 160
Shelf-Stable Juices & Drinks 156
Refrigerated Juices & Drinks 154
Seasonings & Spices 153
Sugar & Sweeteners 150
Shortening & Oil 150
Non-Carbonated Soft Drinks 140
Cookware 134
Purchase index:
share of AA $
sales divided by U.S.
household $ share
X 100
Source: Nielsen Homescan,
52 Weeks Ending 12/31/2011;
UPC-coded
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
African American households spend more
on personal & beauty care African American Nielsen Non-Edible Category Dollar Index
Ethnic HBC 946
Feminine Hygiene 181
Fresheners & Deodorizers 179
Men’s Toiletries 171
Personal Soap & Bath 164
Women’s Fragrances 162
Cookware 134
Sanitary Protection 132
Charcoal 129
Photographic Supplies 127
Purchase index:
share of AA $
sales divided by U.S.
household $ share
X 100
Source: Nielsen Homescan,
52 Weeks Ending 12/31/2011;
UPC-coded
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Asian households spend more on foods that
fit their dietary habits Asian Nielsen Edible Category Dollar Index
Dried Vegetables & Grains 274
Baby Food 203
Refrigerated Juices & Drinks 152
Fresh Produce 139
Snacks, Dips – Dairy 137
Yogurt 128
Pasta 127
Dried Fruit 127
Shortening & Oil 126
Soup 124
Purchase index:
share of Asian $
sales divided by U.S.
household $ share
X 100
Source: Nielsen Homescan,
52 Weeks Ending 12/31/2011;
UPC-coded
27
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Asian households spend more on baby
categories and personal & beauty care Asian Nielsen Non-Edible Category Dollar Index
Photographic Supplies 289
Family Planning 284
Baby Needs 216
Skin Care 192
Disposable Diapers 165
Oral Hygiene 161
Sanitary Protection 159
Kitchen Gadgets 140
Hair Care 135
Vitamins 133
Purchase index:
share of Asian $
sales divided by U.S.
household $ share
X 100
Source: Nielsen Homescan,
52 Weeks Ending 12/31/2011;
UPC-coded
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
H-E-B meets w/ customers, asks “what
would you love to see?” and delivers!
Source: H-E-B & Alberto Martinez /Austin American-Statesman (photo)
“They wanted more things
that remind them of home.”
“The $7 million remodeling
project — which added 6,000
square feet and about 40
employees to the store —
includes a masa factory that
grinds corn daily, a tortilleria
that will turn that masa into
tortillas, a carniceria (Latino-
focused butcher shop) and a
deli with fresh salsas and
cremas.”
North Lamar Boulevard and Rundberg Lane, North Austin, Texas
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Winn-Dixie’s Miami store transforms—bilingual
décor, made-to-order Cuban café & more!
Source: Winn-Dixie
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Pathmark catering to demographics of the
neighborhood
Source: Pathmark, Progressive Gorcer & NJ.com
Progressive Grocer reported on Mar. 16, 2012—
“Our remodeled Weehawken store…offers shoppers
products that match their needs and cultural preferences,”
said Sam Martin, president and CEO of Montvale, N.J.-based
A&P. “With more diverse offerings and a friendlier, more
modern atmosphere, this renovation is a prime example of
our goal to enhance our customers’ shopping experience.”
31
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
“General Mills pilots Hispanic online sampling…
try-before-you-can-buy offer”
Source: General Mills
“Qué Rica Vida
will ship to
consumers’
doors a sampling
of General Mills
products before
they're available
on shelf, a $30
value. Plus they
will receive $8 in
coupon savings
to purchase them
at their local
store.”
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
“Hormel Foods introduces MegaMex Foods,
where you can find all the flavors of Mexico”
Source: http://www.hormelfoods.com/brands/MegaMex/default.aspx
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Website lends understanding of the power of
the African-American consumers
Source: The New York Times & ReachingBlackCosumers.com
The New York Times reported on Nov. 6, 2011—
“We know that there is a significant
business opportunity in reaching
African-American consumers, who
comprise 13 percent of the population
and have a spending power of over
$957 billion,” Rudy Rodriguez, the
director for multicultural marketing at
General Mills, said in an e-mail.”
34
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Macy's partners with Latina Magazine & the
Hispanic Scholarship Fund
Source: Macy’s
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Manufacturer Hispanic websites & apps
Source: Company websites
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
General Mills’ Spanish language app for
Apple iPad
Source: Company website
Instant access
to more than 900
Latin-inspired
recipes, in 12
different
categories
37
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
P&G’s Gain expanding to reach Hispanics
Photo: P&G Gain
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Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Campbell invests in innovation
Source: Campbell’s Soup news release (02/22/2012)
Campbell aligning with the
“New American Family –
nontraditional, multi-
generational, single-parent
and multi-cultural”
“Simply put, our mission is to
reinvent our products and
our company for a new era.”
39
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Ethnic diversity impacting general population
Source: MultiAd Kwikee
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Copyright © 2012 The Nielsen Company. Confidential and proprietary. Copyright © 2012 The Nielsen Company. Confidential and proprietary.
The Growth Majority: Insights into the buying behavior of Multicultural consumers
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