Where They Over-Index: Capturing the Buying Power of Asian Americans

August 23, 2017
As the fastest-growing population group in the country, Asian Americans continue to expand their footprint and create significant impact on every consumer category.

Over the last decade, the influx of immigrants of various Asian nationalities has led to an overall increase of Asian American population by 25%. Today, there are 20.5 million Asian Americans, which represents about 6% of the total U.S. population. According to the U.S. Census Bureau, this number will reach 25.7 million by 2019. The same study also projects that by 2055, the Asian Americans population will outnumber Hispanics as the largest immigrant group.

Asian Americans are also the wealthiest segment of the U.S. population on a per-household basis. With a household median income of $74,245, the median Asian American household income is 38% greater than the national median income of $53,889.

The focus on education is likely one of the biggest drivers of Asian American wealth. In 2015, about 59% Asians had a college degree, compared to about 38% of the overall population. The investment in education seems to be a unifying theme across Asian American consumer groups.

According to the Selig Center for Economic Growth at the University of Georgia, they currently have an estimated buying power of $825 billion. It is expected to grow to $1.1 trillion (6.7% of total U.S. buying power) in 2020.

As this consumer group continues to expand their footprint and create significant impact on every consumer category, it should be the centerpiece of any marketer’s growth strategy.

However, marketers remain hesitant to include Asian American consumers in their multicultural marketing efforts. This is likely due to the diversity of the segment population, which is made up of different nationalities, languages, heritage and traditions.

We have studied a few top categories that Asian Americans over-index on, and explored the reasons behind such consumer behaviors.

Fill out the form below to download the white paper and learn where to focus your future marketing efforts in order to capture Asian American consumers.