Multicultural CPG Segment pegged at $520 Billion by 2050

While in US, I changed my house at least thrice and every time I went to a different suburb with a different locality and a totally different demograhic segmentation. I used to find it very funny that in one WalMart store near to my new house, I always found T Shirt sizes far larger than what fit me. Whereas in the previous locality the WalMart stores had more of smaller sizes. Though in the begininning I was happy thinking that my new gym regime had actually started working, I later realized that the new WalMart store was catering more to the African American customers. This made me realize that stores had to be cognizant of their catchment area and thus stock SKUs accordingly. Though it was a disappointment to know that my gym routine was not really helping it was the first time I started thinking about what Retail companies do for their store planning.

Recent Study by ACNeilsen suggests that by 2050 nearly 50% of the North American consumer population will be non white and thus it means that these companies will have to start planning accordingly.

The Multicultural CPG segment will be close to $520 Billion and I am sure that the research and development wings of the CPG companies will start working to lure these multicultural consumer segments.

The study also points out what are the buying traits of these multicultural segments:

Minority households tend to over-index on some key shopping and media metrics, compared with the general population.


Key Multicultural Buying Insights

Hispanic shoppers tend to...

• Spend more on categories for babies and children: Hispanic households account for 11.8% of CPG total spending, but 16.6% of disposable diaper sales.
• Spend more in traditional mass merchandise and warehouse clubs.
• Spend more on food consumed at home.

African-American shoppers tend to...

• Spend more on health and beauty products, like fragrance: African-Americans account for 11.0% of CPG total spending, but 20.3% of dollars spent in beauty supply stores.
• Spend more in drug and dollar stores.
• Spend more on ingredients used to cook from scratch.
• Buy fewer items on sale or with coupons.
• Spend more on food consumed at home.

Asian-American Shoppers tend to...

• Spend more in club stores: Asian-Americans account for 3.0% of CPG total spending, but 5.5% of dollars spent in warehouse clubs.
• Spend more on categories for babies and children.
• Eat outside of the home more often.

 I also suspect that by 2050 these studies will become more detailed and stop considering the culturally different Asian communities to be the same.