In the years following the COVID-19 recession, the consumer buying power of American households continued to grow and diversify, according to University of Georgia’s Selig Center for Economic Growth’s annual Multicultural Economy Report.
The report finds that America’s buying power—total personal income after taxes—was $18.5 trillion in 2021, a 329% boost since 1990.
The 2022 report finds new estimates of minority buying power in the United States that indicate 17.4% of the purchasing power belongs to an African American, Asian American or Native American household, equaling nearly $1 out of every $5.75 of buying power in the U.S.
The Selig Center estimates the buying power for African American, Asian American, and Native American consumers has increased from $458 billion in 1990 to $3.2 trillion in 2021.
Hispanic households also saw a jump from $213 billion in 1990 to $2.1 trillion in 2021 and went up from 5% of the total consumer market to 11.3%.
Factors influencing diversification include population growth, favorable demographics, entrepreneurial activity and rising educational attainment.
The report says that for business leaders, this means learning how to market goods and services to more diverse markets to be successful. The report also shows the states with the biggest increase in buying power are those with the fastest growing populations and industrial bases.
Utah saw the largest climb in consumer buying power between 2010 and 2021 with 102% increase followed by Colorado, Washington, Idaho, Oregon, Arizona, California, Texas, Nevada and Florida.
Purchasing power grew more slowly in West Virginia, Alaska, Connecticut, Maryland and Louisiana.