Report: Black Consumers Have $2 Trillion In Buying Power

Beyond their buying power, Black consumers are setting digital trends and leading engagement. Black audiences spend 32 hours on apps and websites on their smartphones and tablets.

As some companies in America try to move away from diversity, equity, and inclusion efforts, a new report shows doing away with DEI initiatives could be costly. Black consumers have $2 trillion in buying power. As Black America continues to grow and embraces the nuances of its diverse identities, Black people are also looking for companies that reflect them to earn their business long-term.

Companies risk missing out on Black consumers’ business. According to Nielsen’s Diverse Intelligence Series report Engaging Black Audiences: How Brands Impact, Grow and Win with Inclusion, 67% of Black Americans are likely to seek out new brands if businesses fail to align with causes they care about.

Beyond their buying power, Black consumers are setting digital trends and leading engagement. According to Nielsen’s report, Black audiences spend 32 hours on apps and websites on smartphones and tablets, two hours more than the total U.S. population, so connecting with Black consumers is essential.

“Reaching Black consumers may not be a challenge—but connecting with us can be. Black consumers are leaning into platforms that emphasize conversation and create a sense of connection,” says Charlene Polite Corley, vice president of Diverse Insights & Partnerships at Nielsen.

She adds, “To win with this community who wields $2 trillion in buying power, brands must prioritize engagement strategies that center diverse Black experiences and cultural nuances.”

How To Connect With Black Consumers

The report highlights how Black culture drives current digital trends. Internet slang like “periodt,” “bae,” and “cap” are all examples of how brands adopted African American Vernacular English (AAVE) on social media. According to the report, memes, for example, draw from iconic Black moments and influences.

What has been frustrating for Black consumers is how companies fail to attribute these phrases and images to the origins of Black culture.

Given this community’s time with digital media, Black consumers have become the “general market” on digital platforms. Instead of shying away from DEI efforts, businesses have an opportunity to connect. Organizations can do this by deepening partnerships with Black creators. The report also highlights podcasts to foster connection with Black audiences. Black listeners outpace engagement with audio—from podcasts to radio.

Another opportunity is women’s sports. There has been growing momentum in these sports, particularly the WNBA. Star athletes like A’ja Wilson and Angel Reese drive up enthusiasm among Black consumers.