Asian and Hispanic households will outspend non-Hispanic Whites over the remainder of their lifetimes, according to the latest annual “American Marketscape DataStream” report from Geoscape. This partly owes to longer household lifespans, as each group has a longer life expectancy and lower median adult age than Whites.
Overall, an Asian household acquired today would have a cumulative spend of more than $2.6 million throughout its remaining lifespan, while a Hispanic household’s cumulative spend is estimated at more than $2.1 million. By comparison, cumulative life spending by non-Hispanic White households is estimated to be slightly more than $1.8 million, while for Black households it is slightly more than $1.5 million. All of those figures are up from previous estimates released by Geoscape in 2013.
The report notes that with a median annual household income (HHI) of more than $69,000 and a mean HHI of more than $93,000, Asian-Americans and Pacific Islanders out-earn all other races and ethnicities. By contrast, Hispanics trail the median household income by 21% ($42,700 vs. $53,880). The researchers caution, however, that consumer spending per household often is higher even if income is lower. Indeed, a recent Gallup survey found Hispanics self-reporting a greater daily discretionary spend than any other race or ethnicity.
Overall, Geoscape estimates that total aggregate consumer spending this year will be:
- More than $710 billion for Hispanics;
- More than $630 billion for Blacks; and
- More than $340 billion for Asians & Pacific Islanders.
Identifying certain spending categories, the report notes that African-American spending is higher than other groups for health care, personal care and utilities, while Asian & Pacific Islander spending is particularly high relative to other groups in the personal insurance and pensions category.
About the Data: Geoscape® employs a multi-disciplinary methodology to update certain demographic data published by public service entities then refines and extends this information through various public and proprietary data inputs, along with modeling and analytics. AMDS also includes cultural segmentation and socioeconomic stratification data plus rich and powerful consumer spending potential data.