A comprehensive study of multiculturalism in America by Geoscape determines that Asian and Hispanic households will outspend non-Hispanic White households in their lifetimes. The study (executive summary download page here) pegs consumer spending for the remaining lifetime of an average Asian household at roughly $2.4 million, compared to slightly less than $2 million for Hispanics, about $1.6 million for Whites, and $1.3 million for Blacks.
The estimates are largely a result of remaining lifespan being greater for Hispanics (45.7 years) and Asians (41.2 years) than for Blacks (34.2) and Whites (31.1). That’s because while life expectancies range between 80 and 83 years for Hispanics, Asians, and Whites (76.3 for blacks), the median adult age of a Hispanic American (37) is far younger than that of an Asian American (41.1), Black American (42.1) and White American (49.1).
That discrepancy is remaining lifespan makes up for the separate finding that Hispanics trail the median household income by 19%. Specifically, the median household income for Hispanics is $43,171, versus $57,042 for Whites and $70,861 for Asians. Blacks have the lowest median income, at $36,476. (The overall median is $53,412.) The researchers caution, however, that consumer spending per household often is higher even if income is lower.
Total aggregate Hispanic consumer spending for 2012 was more than $560 billion. Black consumer spending stood at $478 billion, and Asian spending at $262 billion.
- Roughly 64% of Asian households earn more than $50,000 per year, compared to 43% of Hispanic households and 37% of African-American households.
- Top Hispanic consumer spending categories include rice (index of 148), poultry (122) and fresh fruits (117).
- Asian Americans overindex in spending on categories such as education (217), fish and seafood (214) and fresh vegetables (186).
- While Asians have the highest potential for spending on food away from home, Hispanics present more potential for necessary spending on food for the home.
- Asian household incomes and Hispanic household sizes mean that they rival each other on consumer spending potential for apparel, both ahead of Whites and Blacks.
- Non-Hispanic Whites have a bigger spending potential on entertainment than Hispanics and Blacks, but trail Asian households.
About the Data: GeoscapeÂ® employs a multi-disciplinary methodology to update certain demographic data published by public service entities such as the Census Bureau and extends this information through various public and proprietary data inputs, modeling and analytics. American Marketscape DataStreamTM (AMDS) also includes cultural segmentation and socioeconomic stratification data as well as a plethora of consumer spending potential data.