The Growth Majority:
Insights into the buying behavior of Multicultural consumers
1
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
The Growth
Majority
2
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Ethnic Households will be the Majority by
2050
Distribution of the U.S. Population
Hispanic
Black
Asian
White Non-Hispanic
46%
70%
65%
60%
35%
4%
13%
5%
14%
6%
14%
60%
7%
14%
51%
8%
15%
54%
9%
15%
13%
16%
19%
23%
27%
30%
2000
2010
2020
2030
2040
2050
3
Source: US Census
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
The White Non-Hispanic Population Skews
Much Older Today
Asian
Black
Hispanic
White Non-Hispanic
5%
5%
5%
6%
5%
4%
13%
16%
17%
14%
12%
9%
13%
15%
22%
68%
Total
56%
Under 12
18%
19%
60%
60%
68%
12-17
18-34
35-54
Population Age By Ethnicity
7%
79%
55+
4
Source: US Census
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Nearly 92% of the nation’s population growth
came from minorities of all types
Hispanics
Blacks
Asians
Whites
5
2010 versus 2000
Source: USA TODAY / U.S. Census Bureau
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
“Non-Whites & Hispanics accounted for 98%
of the population growth in large metro areas”
% U.S. White Population
86
82
77
71
82
80
'00
'10
73
63
57
'90
'00
Large metros
'10
'90
'00
'10
'90
Small metros
Non-metro areas
6
Source: State of Metropolitan America - Brookings
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
And some other amazing factoids to drive
your multicultural engagements
% U.S. White Population
71
63
'90
'00
Large metros
57
'10
86
82
“42 of 100
77largest
metros lost white 73
population & 22 are
“majority minority”
populations”
“Asians even more 80
concentrated with
1/3rd living in just
three metros: Los
Angeles, New York,
& San Francisco”
“Nearly half of
Hispanics live in
just 10 large
metros, but those
accounted for only
36% of Hispanic
'90
'00
'10
growth”
“Atlanta, Dallas &
Houston led all
metros in Black
population gains,
while populations
dropped in New
'90
'00 & '10
York, Chicago
Detroit”
Small metros
82
Non-metro areas
7
Source: State of Metropolitan America - Brookings
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
“Hispanic shoppers bring increased buying
power as numbers rise”
Hispanic Buying Power
$1.0
Trillions
9%
$1.3
4%
1980
2009
2010
Latinos of Mexican heritage represent the single
most influential segment of the Hispanic market
w/ $616 billion in buying power
2015
8
Source: Package Facts (estimates) via Convenience Store News
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Hispanics shop less often, but spend more
per trip & annually, and less deal prone
Total Retail Channels
Shopping Trips Per Household
150
Basket Ring Dollars Per Trip
$55
$50
145
$45
$40
140
Hispanic - Spanish
Prefered
Hispanic - English
Preferred
Hispanic - Spanish
Prefered
White Non-Hispanic
Basket Ring Dollars Per Household
$7,500
Hispanic English
Preferred
White Non-Hispanic
% Dollars on Deal
28%
$7,250
$7,000
$6,750
22%
$6,500
Hispanic - Spanish
Prefered
Hispanic - English
Preferred
White Non-Hispanic
Hispanic - Spanish
Prefered
Hispanic - English
Preferred
White Non-Hispanic
9
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips Copyright © 2012 The Nielsen Company. Confidential and proprietary.
African Americans shop often, spend less
per trip & overall, and less deal prone
Total Retail Channels
Shopping Trips Per Household
170
Basket Ring Dollars Per Trip
$45
165
160
$40
155
$35
150
145
$30
140
African Am erican
African Am erican
Non-African Am erican
Basket Ring Dollars Per Household
Non-African Am erican
% Dollars on Deal
$7,000
30%
$6,500
25%
$6,000
20%
15%
$5,500
African Am erican
Non-African Am erican
African Am erican
Non-African Am erican
10
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Asians shop more often, spend slightly less
per trip & are more deal prone
Total Retail Channels
Shopping Trips Per Household
Basket Ring Dollars Per Trip
155
$48
150
$46
145
$44
$42
140
Asian
Asian
White Non-Hispanic
Basket Ring Dollars Per Household
White Non-Hispanic
% Dollars on Deal
34%
$7,000
30%
$6,750
26%
22%
$6,500
Asian
White Non-Hispanic
Asian
White Non-Hispanic
11
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips Copyright © 2012 The Nielsen Company. Confidential and proprietary.
English-preferred exhibit trip preference within
supercenters & mass-merchandisers
Shopping Trips Per Household
Grocery Stores
Supercenters
28
27
26
25
24
23
22
21
20
56
51
46
Hispanic - Spanish
Prefered
Hispanic - English
Preferred
Hispanic - Spanish
Prefered
White Non-Hispanic
Mass Merchandisers
15
Hispanic - English
Preferred
White Non-Hispanic
Drug Stores
14
14
13
13
12
11
12
10
Hispanic - Spanish
Prefered
Hispanic - English
Preferred
White Non-Hispanic
Hispanic - Spanish
Prefered
Hispanic - English
Preferred
White Non-Hispanic
12
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Except for drugstores, African Americans
make fewer trips to major channels
Shopping Trips Per Household
Grocery Stores
Supercenters
60
26
25
24
23
55
22
21
20
50
African Am erican
African Am erican
Non-African Am erican
Mass Merchandisers
13
Non-African Am erican
Drug Stores
16
15
12
14
11
13
12
10
African Am erican
Non-African Am erican
African Am erican
Non-African Am erican
13
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Asian households more frequent shoppers
in all major channels but supercenters
Shopping Trips Per Household
Grocery Stores
Supercenters
60
28
26
59
24
22
58
20
57
18
16
56
Asian
Asian
White Non-Hispanic
Mass Merchandisers
16
White Non-Hispanic
Drug Stores
16
15
14
14
12
13
12
10
Asian
White Non-Hispanic
Asian
White Non-Hispanic
14
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Hispanics offset less frequent shopping by
spending more per trip
Basket Ring Dollars Per Trip
Grocery Stores
Supercenters
$48
$70
$47
$46
$65
$45
$44
$43
$42
$60
$55
Hispanic - Spanish
Preferred
Hispanic - English
Preferred
Hispanic - Spanish
Preferred
White Non-Hispanic
Mass Merchandisers
$55
Hispanic - English
Preferred
White Non-Hispanic
Drug Stores
$26
$25
$50
$24
$23
$45
Hispanic - Spanish
Preferred
Hispanic - English
Preferred
White Non-Hispanic
Hispanic - Spanish
Preferred
Hispanic - English
Preferred
White Non-Hispanic
15
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips Copyright © 2012 The Nielsen Company. Confidential and proprietary.
African Americans spend less per trip in
major retail channels
Basket Ring Dollars Per Trip
Grocery Stores
Supercenters
$45
$65
$40
$60
$35
$55
$50
$30
African Am erican
African Am erican
Non-African Am erican
Mass Merchandisers
$50
Non-African Am erican
Drug Stores
$25
$24
$23
$45
$22
$21
$20
$40
African Am erican
Non-African Am erican
African Am erican
Non-African Am erican
16
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Asians offset their frequent shopping by
spending less per trip
Basket Ring Dollars Per Trip
Grocery Stores
Supercenters
$45
$65
$40
$60
$35
$55
$50
$30
Asian
Asian
White Non-Hispanic
Mass Merchandisers
$50
White Non-Hispanic
Drug Stores
$28
$26
$24
$45
$22
$20
$40
Asian
White Non-Hispanic
Asian
White Non-Hispanic
17
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Hispanics measure up well to White NonHispanics in these channels
Shopping Trips Per Household
Warehouse Clubs
Dollar Stores
15
15
10
10
5
5
Hispanic - Spanish
Preferred
Hispanic - English
Preferred
White Non-Hispanic
Hispanic - Spanish
Preferred
Hispanic - English
Preferred
White Non-Hispanic
Convenience/Gas
15
10
5
Hispanic - Spanish
Preferred
Hispanic - English
Preferred
White Non-Hispanic
18
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips Copyright © 2012 The Nielsen Company. Confidential and proprietary.
African Americans are more frequent
shoppers in dollar stores & c-stores
Shopping Trips Per Household
Warehouse Clubs
Dollar Stores
25
15
20
15
10
10
5
5
African Am erican
Non-African Am erican
African Am erican
Non-African Am erican
Convenience/Gas
20
15
10
5
African Am erican
Non-African Am erican
19
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Asians very frequent club shoppers, but not
in dollar or convenience/gas
Shopping Trips Per Household
Warehouse Clubs
Dollar Stores
15
15
10
10
5
5
Asian
White Non-Hispanic
Asian
White Non-Hispanic
Convenience/Gas
15
10
5
Asian
White Non-Hispanic
20
Source: Nielsen Homescan;
Total U.S. 52 weeks ending 12/31/2011;
excludes gas only or Rx only trips 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
Purchase index:
Shortening Oil
138 share of Hispanic $
divided by U.S.
Canned Milk & Creamers
134 sales
household $ share
Shelf-Stable Juices & Drinks
133
X 100
Eggs
130
Refrigerated Juices & Drinks
129
Shortening Oil
129
Gum
127
21
Source: Nielsen Homescan,
52 Weeks Ending 12/31/2011;
UPC-coded
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
Purchase index:
Disposable Diapers
144 share of Hispanic $
divided by U.S.
Family Planning
142 sales
household $ share
Photographic Supplies
142
X 100
Baby Needs
137
Sanitary Protection
129
Cosmetics
127
Laundry Supplies
124
22
Source: Nielsen Homescan,
52 Weeks Ending 12/31/2011;
UPC-coded
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Language preference tied to category spending
Share of Hispanic dollars
by preferred language
Spanish-Preferred Households
English-Preferred Households
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
Englishpreferred
households
spend more on
general population
categories
important
Wine
23
Source: Nielsen Homescan,
52 Weeks Ending 12/31/2011;
UPC-coded
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
Purchase index:
share of AA $
Shelf-Stable Juices & Drinks 156
divided by U.S.
Refrigerated Juices & Drinks 154 sales
household $ share
Seasonings & Spices
153
X 100
Sugar & Sweeteners
150
Shortening & Oil
150
Non-Carbonated Soft Drinks 140
Cookware
134
24
Source: Nielsen Homescan,
52 Weeks Ending 12/31/2011;
UPC-coded
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
Purchase index:
share of AA $
Men’s Toiletries
171
divided by U.S.
Personal Soap & Bath
164 sales
household $ share
Women’s Fragrances
162
X 100
Cookware
134
Sanitary Protection
132
Charcoal
129
Photographic Supplies
127
25
Source: Nielsen Homescan,
52 Weeks Ending 12/31/2011;
UPC-coded
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
Purchase index:
share of Asian $
Fresh Produce
139
divided by U.S.
Snacks, Dips – Dairy
137 sales
household $ share
Yogurt
128
X 100
Pasta
127
Dried Fruit
127
Shortening & Oil
126
Soup
124
26
Source: Nielsen Homescan,
52 Weeks Ending 12/31/2011;
UPC-coded
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
Purchase index:
share of Asian $
Skin Care
192
divided by U.S.
Disposable Diapers
165 sales
household $ share
Oral Hygiene
161
X 100
Sanitary Protection
159
Kitchen Gadgets
140
Hair Care
135
Vitamins
133
27
Source: Nielsen Homescan,
52 Weeks Ending 12/31/2011;
UPC-coded
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
H-E-B meets w/ customers, asks “what
would you love to see?” and delivers!
“They wanted more things
that remind them of home.”
North Lamar Boulevard and Rundberg Lane, North Austin, Texas
“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 (Latinofocused butcher shop) and a
deli with fresh salsas and
cremas.”
28
Source: H-E-B & Alberto Martinez /Austin American-Statesman (photo)
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Winn-Dixie’s Miami store transforms—bilingual
décor, made-to-order Cuban café & more!
29
Source: Winn-Dixie
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Pathmark catering to demographics of the
neighborhood
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.”
30
Source: Pathmark, Progressive Gorcer & NJ.com
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
“General Mills pilots Hispanic online sampling…
try-before-you-can-buy offer”
“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.”
31
Source: General Mills
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
“Hormel Foods introduces MegaMex Foods,
where you can find all the flavors of Mexico”
32
Source: http://www.hormelfoods.com/brands/MegaMex/default.aspx
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Website lends understanding of the power of
the African-American consumers
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.”
33
Source: The New York Times & ReachingBlackCosumers.com
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Macy's partners with Latina Magazine & the
Hispanic Scholarship Fund
34
Source: Macy’s
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Manufacturer Hispanic websites & apps
35
Source: Company websites
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
General Mills’ Spanish language app for
Apple iPad
Instant access
to more than 900
Latin-inspired
recipes, in 12
different
categories
36
Source: Company website
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
P&G’s Gain expanding to reach Hispanics
37
Photo: P&G Gain
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Campbell invests in innovation
“Simply put, our mission is to
reinvent our products and
our company for a new era.”
Campbell aligning with the
“New American Family –
nontraditional, multigenerational, single-parent
and multi-cultural”
38
Source: Campbell’s Soup news release (02/22/2012)
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
Ethnic diversity impacting general population
39
Source: MultiAd Kwikee
Copyright © 2012 The Nielsen Company. Confidential and proprietary.
The Growth Majority:
Insights into the buying behavior of Multicultural consumers
40
Copyright © 2012 The Nielsen Company. Confidential and proprietary.