How Do Black People in America Spend $507 Billion Dollars Annually?
With $836 Billion in Total Earning Power, only $321 Million Spent on Books while $7.4 Billion Spent on Hair and Personal Care Products and Services
New ‘Buying Power’ report shows black consumers spend as economy improves
New 16th edition shows expenditures rise to $507 billion
(November 1, 2010) African-American consumers are cautiously increasing their spending in some key product categories, even as they continue to make adjustments in a slowly growing economy. The finding comes from the soon to be issued 16th annual edition of “The Buying Power of Black America” report.
In 2009, black households spent an estimated $507 billion in 27 product and services categories. That’s an increase of 16.6% over the $435 billion spent in 2008. African-Americans’ total earned income for 2009 is estimated at $836 billion.
The report, which is published annually by Target Market News, also contains data that reflect the economic hardships all consumers are facing. There were significant declines in categories — like food and apparel — that have routinely shown growth in black consumers’ spending from year-to-year.
“These latest shifts in spending habits are vital for marketers to understand,” said Ken Smikle, president of Target Market News and editor of the report, “because they represent both opportunities and challenges in the competition for the billions of dollars spent by African-American households. Expenditures between 2007 and 2008 were statistically flat, so black consumers are now making purchases they have long delayed. At the same time, they re-prioritizing their budgets, and spending more on things that add value to their homes and add to the quality of life.”
The median household income for African-Americans dropped by 1.4% in 2009, but because of students going out on their own, and couples that started their lives together, the number of black households grew 4.2%. This increase meant that many household items showed big gains. For example, purchases of appliances rose by 33%, consumer electronics increased 33%, household furnishings climbed 28%, and housewares went up by 37%.
Estimated Expenditures by Black Households – 2009
| Apparel Products and Services | $29.3 billion |
| Appliances | 2.0 billion |
| Beverages (Alcoholic) | 3.0 billion |
| Beverages (Non-Alcoholic) | 2.8 billion |
| Books | 321 million |
| Cars and Trucks – New & Used | 29.1 billion |
| Computers | 3.6 billion |
| Consumer Electronics | 6.1 billion |
| Contributions | 17.3 billion |
| Education | 7.5 billion |
| Entertainment and Leisure | 3.1 billion |
| Food | 65.2 billion |
| Gifts | 9.6 billion |
| Health Care | 23.6 billion |
| Households Furnishings & Equipment | 16.5 billion |
| Housewares | 1.1 billion |
| Housing and Related Charges | 203.8 billion |
| Insurance | 21.3 billion |
| Media | 8.8 billion |
| Miscellaneous | 8.3 billion |
| Personal and Professional Services | 4.1 billion |
| Personal Care Products and Services | 7.4 billion |
| Sports and Recreational Equipment | 995 million |
| Telephone Services | 18.6 billion |
| Tobacco Products | 3.3 billion |
| Toys, Games and Pets | 3.5 billion |
| Travel, Transportation and Lodging | 6.0 billion |
Source: Target Market News,
“The Buying Power of Black American – 2010″
“The Buying Power of Black America” is one of the nation’s most quoted sources of information on African-American consumer spending. It is used by hundreds of Fortune 1000 corporations, leading advertising agencies, major media companies and research firms.
The report is an analysis of consumer expenditure (CE) data compiled annually by the U.S. Department of Commerce. The CE data is compiled from more than 3,000 black households nationally through dairies and interviews. This information is also used for, among things, computing the Consumer Price Index.
The report provides updated information in five sections:
- Black Income Data
- Purchases in the Top 30 Black Cities
- Expenditure Trends in 26 Product & Services Categories
- The 100-Plus Index of Black vs. White Expenditures
- Demographic Data on the Black Population
The 16th annual report on “The Buying Power of Black America” also includes a preview of findings from the forthcoming 2010 Census report.
Copies of “The Buying Power of Black America” can be purchased from Target Market News for $99 each. For more information call 312-408-1881, or click here to purchase online.
November 5, 2010 at 3:39, pm
If it’s my money and I din’t steal it, but earned it legally and legitimately, I can do with it whatever I want!!!! It’s MINE!!! No discussion necessary!
August 17, 2011 at 11:20, am
Never seen your face on your money… it aint yours
March 3, 2012 at 9:54, pm
Thats the sad thinking that put US [black people]
in a bad situation. I pray for you and retirement.
November 11, 2010 at 3:07, am
that is why we as a people are in the shape we are in right now. everyting that we do indicate we are individualistic in our doing and thinking. we don’t care about eachother at all. we can’t see we need each other. we are the only people who behave this way
August 17, 2011 at 11:21, am
Read the book called “The Willie Lynch Letter”.. You can google it if you want also.
November 28, 2011 at 6:59, pm
I HAVE THAT BOOK, IT’S DEEP. YOU PICKED A GOOD ONE THERE, I HQAVE DEATH OF THE N WORD ON FACEBOOK CHECK IT OUT AND COMMENT PLEASE.
August 18, 2011 at 11:24, am
Buy $507 billion in goods from us, what is by us, for us, through us. Amen
October 18, 2011 at 9:20, pm
That is the truth! Sad to say…
November 11, 2010 at 6:45, am
I disagree with you Steven. There is a bigger picture than just yourself. We have not done so great in terms of building towards the greater good of our people. That is where I have a problem when I look at the figures above. If we are spending about 36 billion on toys (cars, electronics etc) and not so much on education and development (in all its forms). The issue here is are we fascinated by electronics while our backyard is a mess. I am not saying we must not purchase cars and electronic gadgets, but we certainly need to moderate. What this tables says is that we need to sit down and look at our priorities. Like it or not, we have a responsibility and it’s very big.
November 11, 2010 at 11:12, am
I Couldn’t agree with you more Roy. It’s not about me, but it’s about us and it’s always been about us. But I’m a firm believer in the concept that if I worked for it, and Have put first things first, then I should be able to enjoy the fruit of my labor. It’s not about keeping up with anyone, but it’s about taking some time out to smell the roses. – or better yet, cutting some of the roses and bringing them into the house to enjoy their beauty as well as their scent.
February 27, 2012 at 7:09, pm
Well said!!!!!!!!!!!!!!!
April 19, 2011 at 6:24, pm
Black people spend billions of dollars in hour community,but it can not cir-curalate the dollars because we do not own the businesses.
December 30, 2011 at 7:34, pm
Great point jenkins. The very problem that we are having today is that our communities are filled with beauty shops, barber shops and chicken shacks – which leads most of our African american youths to think that they need to develop a life around this industry. What about hardware stores, dance studio’s, coffee houses where workshops are held on 63rd and Woodlawn. We sit back and wait for some brave white, arab person to come in a lead that business. Tired of it
June 10, 2011 at 9:14, pm
I personally am saddened to see that we continuously build up businesses that don’t build us up. We pay the salaries of people who follow us around in their stores as though we can’t be trusted. We promote companies that don’t invest in helping to build bigger, better and less crowded schools but invest in the building of privatized prisons. We glorify franchises that steal the hopes of millions of children along with their allowances but won’t give then a way to support themselves unless they can shoot a ball or swing a bat or a broom better than anyone else. Where is our academy on business building and our institute of good credit? Most of us can’t afford to live without robbing Peter to pay Paul and can’t afford to die without renting a casket or getting cremated. Healthcare is unheard of unless it’s medicaid. The businesses in our neighborhoods are run by other people and it’s all because we forsook our lost generations. We lost an entire generation to crack and another two to H.I.V. and AIDS so who took over to raise those children? The prisons are full of those lost souls. Where do we begin to put these pieces together?
August 7, 2011 at 3:45, am
HEY SISTER WE CAN ONLY START OVER WITH THE NEW GENERATION. THATS WHAT ME AND MY GROUP IS DOING ,YOU CANT TEACH AN OLD DOG NEW TRICKS FEEL ME. THE BLACK FAMILY IS THE PROBLEM TOO .THERE IS NO STRONG FAMILY FOUNDATION IN THE COMMUNITY. MEN GOTTA BE MEN AND THE WOMEN MUST SUPPORT THEM SO THE CHILD CAN SEE THAT AND HE/SHE WOULD WANT THE SAME FOR THERE FAMILY.(FEEL ME)
August 12, 2011 at 6:49, pm
lady mooresabb i could not argree with you more for years our people have been somewhat jealous of what the white man have we have forsaking are own needs and want are ancestors left us so much and within two geneartion we’ve thrown it all away all are gains madam c.j walker left us a multill billion dollar empire now we own 1% of all that and we are about to lose that how sad. all we can leave are kids is noting but indebth!! booker t. washington said over a hundred years ago while in washington he saw the plight of the blackman he saw a brother who made $3.00 a month and watch him spend $2.00 on a carage ride thru the hood to show everbody he was better than them and to this very day how much have we changed like the good book say God loves the child who has his own and untill that day we will never know what it is to be truly free.
June 14, 2011 at 8:14, pm
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August 3, 2011 at 1:19, pm
This report reflects so much it’s also a graph of seeing what we As a people need to do. It will take us to stand up together and say enough is enough. We invest in US for US. Yes, it’s true black business don’t operate under the customer is right nor friendly customer service. Let the training begin explain how we would like a smile when being served that you’re not the only store around and if you continue the attitude the other people I know will stop coming.Remember we need each other to make it ? It been forgotten that crab bucket affect is live and kicking it in your own back yard. We all ain’t the same that point doesn’t only have to be explained to white people. We have to be reminded as well. It’s time to wake up we can’t blame no one else for what we can fix. I see the investments in our phones use the internet on them NOT FOR FB but history EDUCATE yourself. Take the xb and playstation 3 devices from your children. How much of that money come back to you are your kid? The name brand wear WAKE UP need is different than a want. We live like we the JONES and our spending ain’t saying WE POOR. It’s saying we lack the knowledge and everyone else know including us. Go spend time with family and friends. Learn how to love self so we make show those around us how to be loved. That old stuff between you and your family. We gone have to learn how to work that out. Everybody don’t need to know your business. However, get behind a closed door and explain to your people what they do is not right. We’re screaming out and we’re hearing the cries for help. Simple steps to smiling and speaking to one another is a start. I believe in miracles…. we talking about this issues over at cpr on love dot com check us out.
August 7, 2011 at 3:29, am
D.MAYES )I CAN BELIEVE IT WE MUST EDUCATE OUR CHILDREN THIS GENERATION IS LOST. WERE SO BEHIND AS A PEOPLE IT’S SCARY.
August 8, 2011 at 12:17, am
dont put so much validity on this – the sample is small and i wonder abou the lsm – next
December 26, 2011 at 10:22, pm
I agree with you. These numbers seem very inflated to me with such a small # of participants. What scares me is the seemingly innocent/non-chalance of the tracking of our $$. I mean, if this is true, are out checking accounts, credit cards and cash labelled “Black people”? I do believe there is truth to this and much validity to the irresponsible spending but the attachment to “Black spend” bothers me. It should bother everyone of you also.
August 12, 2011 at 1:01, am
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August 16, 2011 at 10:04, pm
interesting
September 29, 2011 at 11:58, pm
I am a white person. When I was ten years old, I was a shoeshiner.
There was a time my parents really poor. How poor? They were not able to feed their children. However, I loved reading. I graduated from High School with flying colours. Since I had started working since I was ten years of age, by the time I was twenty I had some money in my bank account. Therefore I decided to go to Canada in order to start my university studies at University of Ottawa. After five years of hard work, I managed to graduate with a Bachelor of Arts(English literature). Then I moved on to Toronto, and got myself a
Master´s(Sociology of Language). After having lived, worked,
travelled and studied in Canada during eighteen years, I came back to my native Brazil. Now I have my own school. I teach English to
employees of local multinational corporations. I live in CURITIBA,
a two-million people, modern city located in Southern Brazil. I want to point out that I have never drunk nor smoked, and I have no religion. The best religion is helping the needy ones. IRAQUE
October 7, 2011 at 2:53, pm
wow
October 28, 2011 at 10:17, am
I have an African Business Network on facebook if anyone here is interested in joining my group.http://www.facebook.com/groups/Africanmoney2011/
October 31, 2011 at 6:51, pm
Wow. Astounding. As a Black small business owner (Life Essence Massage) and working at a massage clinic, I see it everdqy. We are so open to giving our monies to others because we believe the quality of the service or products are better… But it is not true. The quality from a Black business is better on so many levels…the main one, you’re supporting another brother or sister to be self sufficient and not rely on other companies for survival! Support Black owned companies and if you’re not happy with product or service tell the owner…there’s nothing wrong with constructive criticism…don’t blindly blog or talk about it. Be the peace that you seek….
November 1, 2011 at 2:14, pm
There is no reason for us being a poor Trillion Dollar Nation!
Instead of us being the world’s Super Consumers
Let’s be Super Producers!
http://www.buyblackwednesdays.com
http://www.blackwednesdays.blogspot.com
buyblackwednesdays.groups.facebook.com
November 20, 2011 at 11:33, pm
video email1…
[...]How Do Black People in America Spend $507 Billion Dollars Annually? « Black Men In America[...]…
November 28, 2011 at 6:06, pm
I have a homebased business. But our people cannot see the picture. They would rather support another company that do not support them. Please check out my website
mycellphone.mylightyear.com and mycellphone.mylightyear.net Support a sista and learn how to become a business owner also.
November 28, 2011 at 6:56, pm
SO HOW DO THEY KNOW HOW MUCH WE SPEND? IS THERE A CALCULATING CAMERA IN THE STORES? IS THERE A “N__GG_A WATCH OR SOMETHING? HOPE WE CN GET TOGETHER AS A GROUP AND BUILD OUR COMMUNITY BACK UP, IT’S POSSIBLE AFTER ALL OUR PEOPLE BUILT THE PYRAMIDS.
January 1, 2012 at 10:38, pm
ALL AFRICAN AMERICANS NEED TO SEE THIS, WE NEED TO BECOME BUSINESS PEOPLE INSTEAD OF JUST CONSUMERS.
January 5, 2012 at 3:09, am
OK now break-down what whites and other races spend a their money on so we can do a real comparison.
January 9, 2012 at 12:15, am
Those are figures that I’d also like to see.
January 5, 2012 at 9:27, pm
I have heard this same message since the turn of the century 19th to 20th even Dr. King in1968 began to talk of an economic base developed on our $30 million spending power of , but the problem I see is that we have not built any institutions to develop, grow, and protect assets. Assets bring me to another point, we as a people, are talked about in the context of spending power not assets under management. We have to build multigenerational institutions that will educate, develop, grow and protect the assets we build through the investment and then reinvestment of our dollars in BLACK INSTITUTIONS. I am working on a post on my http://www.h2comms.net/h2-communications-blog.html by blog about the new digital frontier where we can develop Black businesses and then support these same businesses without leaving the comforts of our homes using the expensive electronic toys we kill for.
January 8, 2012 at 1:19, pm
Orphius Noir .. So Here is the Issue, If you have the “KNOW HOW” to create a product in any of the areas mentioned in the above “DO IT” and YOU WILL MAKE MONEY IN OUR / YOUR OWN ‘HOOD’S !!!
IF YOU DO NOT YOU WILL BUY IT FROM SOMEWHERE / SOMEONE ELSE & THAT WILL TAKE THOSE DOLLARS OUT OF OUR / YOUR NEIGHBORHOODS. THAT’S IT !! THAT’S ALL !!
THE USA IS BUILT ON THIS SIMPLE THING, CREATORS AND CONSUMERS , SO BE CREATIVE , SELL SOMETHING , EARN INCOME AND HELP REBUILD YOUR OWN NEIGHBORHOOD(S)
February 3, 2012 at 8:33, pm
Just goes to show what black folk think is important
February 21, 2012 at 7:03, pm
I’ve read a few interesting statements here. I was searching for information for another reason. However, this is not news to me. 2 days after 9/11 african-americans spent over 47 billion on cars, clothes and electronics. There is an agency that tracks the spending habits of our people,(will post when located). There are lot of reasons for this alarming disparity. But here are somethings we can look at in comparison and you see it but might not pay it any attention. White americans spend the same tops amounts that we do, the only difference they buy real property, we buy clothes and cars we really can’t afford. I mean, $200 for a pair of sneakers….really? So whites go to the dealership and please hear this…..they get the best interest rate 0% 62 mnths to pay the same car they pay $199-240 a month, we pay $400. We rent $600 a mnth apartments. 3 yrs before the housing market fiasco, I was making $9.00 an hr. tell me why would I consider purchasing a home on that income, how would anyone be able to afford it. Well said to say a lot of african-americans did and struggled when those arm’s broke in 2007 and sub-prime lending bottomed out. Most of the sub-prime lending agents that I encountered were guess what…..us, they didn’t care one bit if you couldn’t afford if you bought it….you literally bought it. I drive a used car and always will paid for don’t want it if it’s not. A lot of good Ideas on here but until we become a nationwide effort we will sadly continue in the same destructive pattern. Asian money stays in their community 7 days a wk..they earn our money and send it home…how…they buy toyotas. Whites…in their communities 5 days a wk..how….they pay their bills, from mortgage to everything else and then they splurge.
African-Americans……3 days….thurs, friday, sat……by sunday we’re broke, trying to get a payday loan to get to work the next week to do the same thing. Another alarming statistic healthcare, and end not is anybody aware or does anybody even care that African-American women die at an alarming rate from breast cancer than white women…..from the same disease…..what’s the disparity there I wonder?………just saying.
February 26, 2012 at 5:18, pm
Some of the comments posted were very good pointers of the ills we face in our communities. These comments date back to November 5, 2010 and to get only 35 reponses in 15 months that goes to show where black folks/black youths heads are at.
The internet contains a wealth of imformation, but yet many young blacks are more interested in facebook, you tube and the latest fad of x-box. NOW COME ON! How about learning to run a business other than, as one reponser said, besides a chicken shack or beauty/barber shop. I rermember, being a product of the 50′s, from the Westside of Chicago, store ownership were blacks. The black buninessmen would extend credit to certain families I was lucky to have an upstanding mother, one that could get credit, and repay when our ss check would come, due to my dad’s early death. Some of the statistics posted are whether hard to soak in. Where only 0.0007% of black dollars go to the purchase of books and 0.015% goes toward education, now that is very alarming. As I learned earlier in life from the older generations who said ” If you want to hide something from a black person put it in a book”. I made that statement to an individual and his reponse was ” like money” wrong answer, correct answer “information”. We have come so far to be going backward. The great migration that started in the first decade of the 1900′s where blacks left the South for better conditions away from the Jim Crow Laws. These people were hard workers and brought about a sense of pride which developed into ownership and small business. Blacks that did invest in our communities desided over the years that the crabs in the barrel syndrome probably overwhelmed them. Yes, why do blacks not want to invest in black communities? It can amount to a number of factors
“The Lost Generations”, “The Crabs in the Barrel Syndrome”
Drug and Crime or better yet “Come On Brother Give Me A
Break”. If a blackman open a store in the Hood, he would more likely be a target of thefts, whereas, the brother from the Hood would not try the same s–t with, say an Arab, because they stand eight or nine strong and will likely blow their f–k— head off. To say that it to say in all actuality we need to do more to invest in our communities and stop the other than us from walking out with our DOLLARS. And brothers in the “Hood” stay in school long enough to figure something out.
March 8, 2012 at 2:32, pm
The man issue that every one is missing is that we are consuming all these products, but we are not the ones making the profit of them. Everyone is eating of our plate except us. We must create business so when we consume we are putting these dollars back in to our communities. Think my people.
March 11, 2012 at 2:13, pm
We as a community have more than just a where we spend our dollars. We have healthcare issues that no one really seems to care about. Tell me, why is it that breast cancer a disease that is less likely to effect african american women….but when diagnosed is more likely to die from than her white counter-parts. Yes we are in the low percentage for getting the disease……37-39% death rate. Statics are improving but by a slim margin. This isn’t genectics we’re looking at there are underlying conditions that cannot be address by healthcare professional and I see it everday with every visit. We as a people have stopped caring about ourselves, some of our children were raised by giving not working for it……the bible says struggle breeds character……that not being woven into the very core of our youth starts the decline of our race….it seems we just don’t care enough….and while I’m at the healthcare note…….the statistics are not good for the black man when it comes to prostate cancer…..have it checked and black women have regular mammograms. If you are underinsured or not insured there is assistance available for you check with your state and let’s live for future generations.
April 21, 2012 at 6:55, pm
Man! Thats crazy, we can pool our money and solve a lot of problems over night.
May 24, 2012 at 10:11, pm
Keep spending your money on sneakers…weaves…rims and iphones. You people neglect your family of things that matter and expect the tax payers to act like the real parent to your children. The tax payers (usually whites who work) pay for your daycare..rent…food..medical insurance…and pretty much any priority that a decent parent would usually provide for their child. You people are selfish and only care about what you look like to others from a distant…try having some pride and start spending your money on crape that really matters.
May 24, 2012 at 11:18, pm
If you people understood the psychology behind the abuse and neglect that you put your families through ..then you would understand why you spend your money on the meaningless things you buy. Black parents typically physically abuse and emotionally neglect their children. You feel good when you buy something that will attract attention to yourself. Your people are so neglected of affection and attention from your parents..when you become old enough to attract attention to yourselves as young adults.. it feels so good… it becomes the main priority…even over satisfying the basic needs your own children….cycle then continues…and continues on from generation to generation…understand the psychology of it then you will understand why your people behave the way they do. Stop putting the blame on other groups of people and take long look in the mirror.