The buying power of African-Americans has topped $1 trillion, a new report finds.
According to leading market research firm Packaged Facts, between 2010 and 2015 African-American buying power grew from $995 billion to $1.3 trillion for a cumulative growth of 27%.
The largest areas of spending included apparel, personal care products (especially fragrances), home furnishings, appliances, and home improvement/remodeling. However, dining out topped the list of major expenditures for Black households, with an estimated 14% increase over the past three years.
The boost in buying power is linked to a significant rise in affluent Black households. Between 2005 and 2014 the number of African-American households with an income of $100,000 or more jumped 83%, from 1.1 million to around 2 million. These numbers are expected to increase with a forecasts of cumulative growth of 16% between 2015-2020.
The findings were published in the report, African-Americans: Demographic and Consumer Spending Trends, 10th Edition.
Now that the numbers are confirmed, where will we spend the next $1 trillion?