First published on www.nielsen.com
African-Americans, Asian-Americans and Hispanics—the “Multicultural” consumers—are taking the music industry by storm. According to current U.S. Census Bureau projections, the American consumer is increasingly the multicultural consumer; forecasted to become the majority of the U.S. population by 2043. Given that Multicultural consumers account for 31 percent of the total spend on music and, on average, spend $7 more on music than the total market, this growing group is increasingly influencing the music market.
Not only are these consumers shaping the musical taste of the U.S. population as a whole, but they’re also creating new and innovative ways to discover, buy and share music. Companies that wish to understand the future of music need to pay close attention to this growing demographic’s consumer habits.
Fifty-three percent of the Multicultural population is under age 35, compared with 45 percent of the country’s total population. And within the critical Millennial generation, 40 percent are Multicultural. Multicultural Millennials are young enough to consider music an essential component of their lives and old enough to have money to spend on it. And with these young consumers leading trends in smartphone use, online streaming and social media, they’ve become an essential asset to the music industry.