BY: EARLENE GREENE, First Published on: May 25, 2022
By Earlene Greene
- The top 30 markets represent $250B or over 25% of Black consumption
- Black Consumer’s economic power is projected to reach $1.7T by 2030
Many say that the Black consumer’s spending power is impressive, but it’s futile if it doesn’t create economic power, racial equity, political control and systemic change. Black Consumer’s economic power is set to expand from $910 billion in consumer spending in 2019 to a projected $1.7 trillion by 2030. This makes our spending power equal to the projected GDP of Mexico in 2030, representing the top 30 markets of $250 billion, or over 25 percent of Black consumption. Although we are empowered, it seems as though our power serves others and keeps us stuck in a disadvantaged consumerism cycle, and top Black consumers shouldn’t wait for change, they can demand it.
Why This Matters: Black consumers are a growing economic block, but not a monolithic one, and their preferences are shifting and diversifying as they attain increasingly high levels of education. A recent McKinsey survey found that Black consumers are willing to pay up to 20% more for the right products and services that meet their necessities. Capturing the attention of this growing economic block can lead to long-term relationships. Specifically, 68% of the McKinsey survey respondents reported that they’re loyal to brands that best satisfy their necessities.
Despite where we are now, and our projected growth, Black consumers continue to experience inequities. These include things like higher prices in predominantly Black communities, lack of products or services that support our financial health and security, along with a lack of understanding about our aesthetic, cultural and economic needs. These inequities stem from the disinvestment in Black communities and failure of companies to see Black consumers as their priority ethnic targets, which is slowly changing.