Multicultural Millennials drive 47% of US GDP, according to new Nielsen report

Out of the 75 million Millennials (ages 18-34) living in the US, 42% are of African-American, Asian-American, and Hispanic heritage—and according to Nielsen, trends and consumer groups once considered niche to these specific demographic groups have now shifted to the mainstream.

“That shift will only accelerate over the next several decades,” according to Nielsen’s latest report titled Multicultural Millennials: The Multiplier Effect.

“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,” said Courtney Jones, vice president of Multicultural Growth & Strategy at Nielsen.

“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,” she added.

What’s in the shopping cart?

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According to the report, the high growth consumer packaged goods categories among multicultural millennials include frozen juices [a category that has been in decline for years] among Asian-American Millennials (167%-dollar growth rates in the 52 weeks ending July 30, 2016), and Baby Food among Hispanic Millennials (57%).

In terms of share of all Millennial dollars, Asian-Americans and Hispanics each make up about 10% of all purchases of dried grains and vegetables.

In fact, Hispanic Millennials spend more on dried vegetables and grains compared to the average consumer, the report revealed. In addition, Hispanic Millennials also make up 10% of yeast bought at grocery stores.

In terms of flavors, 44% of all Millennials said that “it’s important or essential for their foods to include ‘multicultural flavors.’”

Overall impact on the market

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Multicultural Millennials spend upwards of $65bn each year, according to the report.

This diverse demographic group is “bridging the gaps between their birth culture, their own children, and mainstream society,” the report said. Trend reports from various companies reflect the growing influence cultures from around the world have on the American culinary scene.

For example, Campbell Soup's latest Culinary TrendScapes report revealed that curry culture, modern Middle Eastern, and advanced Japanese food beyond sushi are on trend and poised to grow in 2017.

Beyond the products they buy, multicultural Millennials are credited for valuing experience, looking for products that “enhance and support their connections to their culture.”

You can request an executive summary or full report HERE.