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Asian-American Consumer Base: Has Tremendous Buying Power, Still Growing

November 18, 2012

Asian-American Consumer Base: Has Tremendous Buying Power, Still Growing

Source: Nielsen

The Asian-American market represents a significant growth opportunity for the nation’s businesses that sell goods and services. Asian-American consumers provide growth opportunity to businesses by appealing to a consumer base that is growing, affluent, well-educated, technologically savvy and has a tremendous buying power that continues to soar.

With a 51-percent increase in population since 2000, Asian-Americans are experiencing the highest growth rate of any multicultural segment, slightly outpacing the Hispanic population. Asian-Americans represent an exciting growth opportunity for businesses, with a $718 billion in buying power that is expected to reach $1 trillion in just five years (equal to the 18th largest economy in the world).

Over the past decade, the Asian-American population has grown at double-digit rates in 49 out of the 50 states. In fact, a dozen states have counties that have seen growth rates of over 200 percent. Not only are Asian-Americans the fastest growing segment, many are also affluent and educated. The Asian-American household median income is 28 percent higher than the total U.S. median in 2012. For marketers trying to reach affluent consumers, it is important to note that 28 percent of Asian-American households have annual incomes greater than $100,000, compared to 18 percent of total U.S. households. In addition to being affluent, they are also well-educated. Fifty percent of Asian-Americans 25 years and older have a Bachelor’s degree, compared to 28 percent of the total population.

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