trends now
Snapshot of the U.S.
by Tara Rosenzweig
The nation's population is ever-changing, and that becomes even more evident when looking at current demographic trends. Here are the top five trends to keep in mind when you're wondering exactly who your customers are—and who they might be in the near future.
MINORITY POPULATION BOOM
1 Approximately one quarter of the U.S. population is comprised of Hispanics and African Americans. From 1990 to 2012, the Latino population is expected to increase 131 percent, the Asian population 115 percent, and the African American population 55 percent. During the same period, the white population is expected to increase 19 percent.
Pew Research Center predicts that by 2050, less than half the U.S. will be white, 29 percent will be Hispanic, with 13 percent Black, and 9 percent Asian. —Sources: Selig Center for Economic Growth, U.S. Census Bureau, Pew Research Center
RISE IN ETHNIC BUYING POWER
2 Along with rising minority population come huge shifts in buying power based on total personal income after taxes.
From 1990 to 2012, purchasing power among Latinos is expected to rise 495 percent, and Asians are close behind at 475 percent.
African Americans' spending power is forecast to increase 257 percent. In contrast, buying power of whites is estimated to rise only 187 percent. —Source: Selig Center for Economic Growth
A GRAYING AMERICA
3 The U.S. is getting older. Median ages were 35.2 for men and 37.8 for women in 2006, up from 35 and 37.4, respectively, in 2004. The percentage of Americans age 65 to 84 is expected to rise from 10.9 percent in 2000 to 14.1 percent in 2020.
However, that's not to say there is a lack of children: In both 2000 and 2006, the population of children under the age of five was 6.8 percent. —Source: U.S. Census Bureau
TIGHTENING OF PURSE STRINGS
4 In the current economy, consumers are spending on necessities such as food and medical care, and forgoing big-ticket and luxury items such as televisions and new cars.
Spending grew 0.1 percent from February to March, and income rose 0.3 percent in March, following a 0.5 percent increase in February.
ECPs should take solace in knowing that consumers aren't cutting medical spending, including eyecare. —Source: U.S. Commerce
| 5 Middle Class SHRINKAGE |
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| Since the late 1980s, the incomes of the country's highest-earning families have grown substantially while middle- and lower-income families have experienced only modest increases. This income inequality trend accelerated between the late 1990s and the mid-2000s. Incomes among the bottom fifth of families declined by 2.5 percent since the late 1990s, but increased 9.1 percent among the top fifth. Similarly, average incomes grew by only 1.3 percent among the middle fifth of families during that time. Across the entire U.S., the poorest fifth of families have an average income of $18,120, while the richest fifth average $132,130. —Source: Center on Budget and Policy Priorities, April 2008 |
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