A new Nielsen study released Wednesday focuses on the purchasing power and influence of the multicultural millennial. In the report, titledÂ Multicultural Millennials: The Multiplier Effect, Nielsen takes a look at key spending trends within this demographic; specifically where they prefer to live, and how advertisers can reach them through culture, food, and technology.
“In addition to the influence they command on their more non-Hispanic white peers, there is another reason marketers and advertisers should be interested in multicultural millennials: many of them are first generation professionals, who are in prime acquisition mode,â€ said Courtney Jones, vice president of Multicultural Growth and Strategy at Nielsen, in a press release. “A growing disposable income among multicultural millennials is a ripe opportunity for companies that court them, and make an effort to cultivate and earn their business.â€
According to the press release, key highlights from the report include:
Top Metropolitan Regions
Today, 21 of 25 of the most populated U.S. counties are a multicultural majority, with 44% of multicultural millennials choosing to live in the top 10 Nielsen DMAs, including New York, Los Angeles, San Francisco, and Houston.
Influence of Millennials’ Preferences for Multicultural Flavors
While almost half of millennials want to purchase food from companies that harbor a strong social purpose or mission, this is almost equally as important that companies offer multicultural products, with 44% of millennials saying that it’s important or essential for their food to include “multicultural flavors.”
What Multicultural Millennials Are Buying
When exploring the top consumer categories that multicultural Millennials purchase:
- Â African American millennials spend more than average on ethnic hair and beauty products (80% share).
- Asian American millennials spend more on skin care preparations than the average consumer (10% share).
- Hispanic millennials spend more on dried vegetables and grains compared to the average consumer (10% share).
Multicultural millennials who are active on their mobile devices spend over $65 billion per year, with an increasing majority of those dollars being spent online, They also influence more than $1 trillion in total CPG and entertainment spending.
Nearly halfÂ of the multicultural millennials surveyed said they use their mobile devices to compare prices and browse when shopping. Also, almost 80% agree that the internet is a great place to buy products. This is easier for this generation to do, since millennials value and maintain their connection to the internet throughout the entire day.
Check out the full press release here.