The Grocery Cart of the Black Consumer - US

Published by: Mintel International Group Ltd.

Published: Sep. 1, 2010 - 101 Pages

Table of Contents

SCOPE AND THEMES

What you need to know

Definition

Data sources

Consumer survey data

Consumer Expenditure Survey

Advertising

Abbreviations and terms

Abbreviations

Terms

Black Affluents

Black Aspirationals

EXECUTIVE SUMMARY

The Black consumer

Where Black consumers shop for groceries

What attracts the Black grocery shopper?

Baking products

Breads

Breakfast foods

Beverages

Condiments, sauces, seasoning, and oils

Desserts

Fruits, vegetables, and salad

Meats and fish

Ready-made and prepared foods

THE BLACK CONSUMER

Key points

CATEGORY EXPENDITURES

Figure 1: Average annual expenditures—Black CUs, by expenditure category, 2002-10

Figure 2: Average annual expenditures—non-Black CUs, by expenditure category, 2002-10

DISTRIBUTION OF EXPENDITURES

Figure 3: Average annual distribution of expenditures, by categories—Black vs non-Black CUs, 2008

Food and beverage expenditures

Figure 4: Average annual expenditures on food and beverages—Black vs non-Black CUs, 2002-10

Figure 5: Average annual expenditures of food and alcoholic beverages—Black vs other races, indexed to all

CUs, 2008

Figure 6: Average annual expenditures on food and alcoholic beverages—Black vs non-Black CUs, 2008

Expenditures on food at home

Figure 7: Average annual expenditures on food at home, indexed to all CUs, by race of reference person, 2010..12

Average weekly expenditure on groceries high for many low-income Black households

Figure 8: Amount spent on groceries in average week, by race/Hispanic origin and household income,

February 2009-March 2010

THE BLACK GROCERY SHOPPER

Figure 9: Amount spent by Black consumers on groceries in average week, by household income, February

2009-March 2010

WHERE THE BLACK CONSUMER SHOPS FOR GROCERIES

Key points

A LACK OF ACCESS TO FRESH FOODS

Expenditure by retail type

Figure 10: Black consumer expenditure on groceries, by retail type, May 2010

RETAIL PREFERENCES FOR FOOD AND BEVERAGES

Figure 11: Type of retail outlet where Black consumers purchased food and beverages in the past month, by

household income, May 2010

Walmart preferred by those with children in the home

Figure 12: Type of retail outlet where Black consumers purchased food and beverages in the past month, by

presence of children in the household, May 2010

Regardless of income, Walmart preferred for household items

Figure 13: Type of retail outlet where Black consumers purchased household goods in the past month, by

household income, May 2010

Childless shoppers less likely to purchase household items at Walmart

Figure 14: Type of retail outlet where Black consumers purchased household goods in the past month, by

presence of children in the household, May 2010

CHANGES IN GROCERY EXPENDITURES

Key points

GROCERY PRICING TRENDS

Figure 15: Price changes on selected grocery items, monthly and yearly, 2010

CHANGES IN GROCERY EXPENDITURES IN THE BLACK HOUSEHOLD

A third of Black households are spending more on groceries

Figure 16: Changes in grocery expenditures in the Black household, by household income, November 2009

Figure 17: Changes in grocery expenditures in the Black household, by category, by household income, May

2010

CHANGES IN SHOPPING HABITS POST-RECESSION

$50K+ households less willing to give up purchasing brands

Figure 18: Changes in grocery shopping behavior by Black consumers, by household income, May 2010

Parents are less focused on brands

Figure 19: Changes in grocery shopping behavior by Black consumers, by gender and presence of children in

the household, May 2010

COUPON USAGE

Traditional coupon use lower than average among Black shoppers

Figure 20: Usage of cents-off coupons, by race/Hispanic origin and household income, February 2009-March

2010

Coupon use and the Black consumer

Figure 21: Usage of cents-off coupons by Black consumers, by age, February 2009-March 2010

Figure 22: Usage of cents-off coupons by Black consumers, by household income, February 2009-March 2010 ..28

Type of coupons used by Black consumers

Figure 23: Type of coupons used, by household income, February 2009-March 2010

Where Black consumers use coupons

Figure 24: Where coupons are redeemed, by household income, February 2009-March 2010

Kairos time and how it relates to coupon use among Black shoppers

On-shelf coupons are appealing to Black shoppers

Figure 25: Awareness and use of on-shelf coupon machines, by race/Hispanic origin and household income,

February 2009-March 2010

Digital couponing

BAKING PRODUCTS

Key points

Black households use more baking products

Figure 26: Purchase of baking products, by race/Hispanic origin, February 2009-March 2010

Highest and lowest income groups similar in baking product use

Figure 27: Purchase of baking products by Black consumers, by household income, February 2009-

March 2010

Households with children use more baking products

Figure 28: Purchase of baking products by Black consumers, by presence of children in the household,

February 2009-March 2010

BREADS

Key points

Bread consumption is high in Black households compared with other races

Figure 29: Purchase of breads, by race/Hispanic origin, February 2009-March 2010

Nearly all Black consumers eat bread regardless of age

Figure 30: Purchase of breads by Black consumers, by age, February 2009-March 2010

Households with children consume more bread

Figure 31: Purchase of breads by Black consumers, by presence of children in the household, February 2009-

March 2010

BREAKFAST FOODS

Key points

Black households purchase more breakfast foods compared with other races

Figure 32: Purchase of breakfast foods, by race/Hispanic origin, February 2009-March 2010

Cereal consumption is significant among Black households of all income levels

Figure 33: Purchase of breakfast foods by Black consumers, by household income, February 2009-

March 2010

Households with children are more likely to consume toaster pastries

Figure 34: Purchase of breakfast foods by Black consumers, by presence of children in the household, April

2010

NON-ALCOHOLIC BEVERAGES

Key points

A national backlash against sugary soft drinks

Creating healthier soft drinks

More Black households consume sugar-sweetened carbonated beverages

Figure 35: Purchase of beverages, by race/Hispanic origin, February 2009-March 2010

Coffee and tea consumption higher among Black women aged 55+

Figure 36: Purchase beverages by Black consumers, by age and gender, April 2010

Soft drink consumption increases when children are in the home

Figure 37: Purchase of beverages by Black consumers, by presence of children in the household, April 2010

Northeasterners are more likely to consume ice tea

Figure 38: Purchase of beverages by Black consumers, by region, April 2010

CONDIMENTS, SAUCES, SEASONING, AND OILS

Key points

Cultural roots

Figure 39: Purchase of condiments, sauces, seasonings, and oils, by race/Hispanic origin, February 2009-

March 2010

Household income impacts edible fats and oils purchases

Figure 40: Purchase of condiments, sauces, seasonings, and oils by Black consumers, by household income,

April 2010

Regional influences on condiment purchases

Figure 41: Purchase of condiments, sauces, seasonings, and oils by Black consumers, by region, April 2010

DAIRY PRODUCTS

Key points

Lactose intolerance among African Americans impacts dairy purchases

Asians and African Americans consume less dairy

Figure 42: Purchase of dairy products, by race/Hispanic origin, February 2009-March 2010

Black women eat more yogurt compared to Black men

Figure 43: Purchase of dairy products by Black consumers, by gender, February 2009-March 2010

Black households with children consume more cheese

Figure 44: Purchase of dairy products by Black consumers, by presence of children in the household,

April 2010

DESSERTS

Key points

Desserts are a significant part of Black soul food culture

Figure 45: Purchase of desserts, by race/Hispanic origin, February 2009-March 2010

Black women consume more desserts than Black men

Figure 46: Purchase of desserts by Black consumers, by gender, April 2010

Black households with children consume more dessert items

Figure 47: Purchase of desserts by Black consumers, by presence of children in the household, April 2010

FRUITS, VEGETABLES, AND SALAD

Key point

Black households consume less fresh, more frozen or processed fruits and vegetables

Figure 48: Purchase of fruits, vegetables, and salad, by race/Hispanic origin, February 2009-March 2010

Black Boomers and Gen-Xers consume more vegetables

Figure 49: Purchase of fruits, vegetables, and salad by Black consumers, by age, April 2010

Lower-income households are significantly less likely to consume fresh produce

Figure 50: Purchase of fruits, vegetables, and salad by Black consumers, by household income, April 2010

PACKAGED MEATS AND FISH

Key points

Meat and seafood consumption is high among Black consumers

Figure 51: Purchase of meats and fish, by race/Hispanic origin, February 2009-March 2010

Household income impacts packaged meat and seafood purchases

Figure 52: Purchase of meats and fish by Black consumers, by household income, April 2010

Packaged fish purchases similar for childless households and households with children

Figure 53: Purchase of meats and fish by Black consumers, by presence of children in the household, April

2010

READY-MADE AND PREPARED FOODS

Key points

Homemade does not necessarily mean “from scratch”

Figure 54: Purchase of ready-made and prepared foods, by race/Hispanic origin, February 2009-March 2010

Household income has little impact on consumption of some ready-made and prepared foods

Figure 55: Purchase of ready-made and prepared foods by Black consumers, by household income,

April 2010

Black households with children consume more frozen pizza and pizza products

Figure 56: Purchase of ready-made and prepared foods by Black consumers, by presence of children in the

household, April 2010

SNACKS, CAKES, AND PIES

Key point

The not so sweet story

Figure 57: Purchase of snacks, cakes, and pies, by race/Hispanic origin, February 2009-March 2010

Salty snack consumption typically declines with age in some categories

Figure 58: Purchase of snacks, cakes, and pies by Black consumers, by age, April 2010

Consumption of snacks, cakes and pies is higher in households with children

Figure 59: Purchase of snacks, cakes, and pies by Black consumers, by presence of children in the

household, April 2010

MARKETING STRATEGIES

Key points

ADS TARGETING THE BLACK CONSUMER

Television

Kraft

Figure 60: Kraft Macaroni and Cheese/Cheddar Explosion, TV ad, June 2010

Walmart

Figure 61: Walmart, Mr. Rollback—Darrel, TV ad, May 2010

Pepsi

Figure 62: Pepsi, Refresh Project, TV ad, July 2010

Eggo Waffles

Figure 63: Eggo Nutri-Grain waffles, Louise, TV ad, July 2009

Doritos

Figure 64: Doritos, Keep your hands off my Doritos, TV ad, February 2010

Online

U.S. BLACK POPULATION

Key points

U.S. population by race/Hispanic origin

Figure 65: U.S. population, by race and Hispanic origin, 2005-15

Figure 66: Population, by race/Hispanic origin, 1970-2020

Figure 67: Asian, Black, and Hispanic populations, 1970-2020

U.S. Black population

Black population by age

Figure 68: U.S. Black population, by age, 2005-15

U.S. Black geographic concentration

Figure 69: Black geographic concentration, by region, 2007

Black population by state

Figure 70: States with largest Black population, 2008

Figure 71: States with the highest share of Black residents, 2008

Black metros

Figure 72: Metropolitan status of Black households, 2001 and 2007

Figure 73: Top 10 metropolitan areas with the largest number of Black residents, 2006-08

BLACK PURCHASING POWER

Black income

Figure 74: Household income distribution for all households and Black households, 2008

Income of Black households versus total U.S. households

Figure 75: Share of Black households with incomes of $50K or more versus total U.S. households, 2002 and

2008

Purchasing power by race/Hispanic origin

Figure 76: Purchasing power, by race/Hispanic origin, 2008

Figure 77: Top 10 states with the largest share of Black buying power, 2008

Figure 78: Top 10 states, by rate of growth of Black buying power, 1990-2008

BLACK HOUSEHOLDS

Figure 79: Average household size, by race/Hispanic origin/race of householder, 2001 and 2008

COUNTRY OF ORIGIN/HERITAGE

African immigrants

Figure 80: U.S. immigrants, baccalaureate and advanced degrees, by continent/region of origin, 2000

Caribbean immigrants

Top five countries of origin

Geographic location

Neighborhood characteristics

APPENDIX: OTHER USEFUL CONSUMER TABLES

Figure 81: Average annual expenditures—Black vs. other race households, by expenditure category, 2008

Figure 82: Average annual expenditures, indexed to all CUs—Black vs other races, 2008

Figure 83: Average annual expenditures on food at home, by race of reference person, 2010

APPENDIX: TRADE ASSOCIATIONS

Abstract

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