Racial and Ethnic Diversity A notable trend is the changing racial and ethnic composition of the U.S. population. Approximately one in three U.S. residents belongs to the following racial or ethnic groups: African American, Native American or Alaska Native, Asian American, or Native Hawaiian or Pacific Islander. Diversity is further evident in the variety of peoples that make up these groups. For example, Asians consist of Asian Indians, Chinese, Filipinos, Japanese, Koreans, and Vietnamese.
The 2010 Census allowed respondents to choose more than one of the five race options, and more than 5 million people reported more than one race. Hispanics, who may be from any race, currently make up 16 percent of the U.S. population and are represented by Mexicans, Puerto Ricans, Cubans, and others of Central and South American ancestry. While the United States is becoming more diverse, suggests that the minority racial and ethnic groups tend to be concentrated in geographic regions.
The racial and ethnic composition of the United States is expected to change even more in the future. By 2030, the Hispanic population will grow from 51 million to more than 78 million, or 22 percent of the population. The number of Asians in the United States will almost double to 23 million, or 6 percent of the population, and the African American population will be approximately 49 million, or 14 percent of the population. The multiracial category currently makes up 1.7 percent of the population and is expected to grow to 3.6 percent. Overall, the trends in the composition of the population suggest that the U.S. market will no longer be dominated by one group and that non-Hispanic Caucasians will be a declining majority over the next 15 years.
While the growing size of these groups has been identified through new Census data, their economic impact on the marketplace is also very noticeable. By 2015, Hispanics, African Americans, and Asian Americans will spend $1.3 trillion, $1.1 trillion, and $880 billion each year, respectively. To adapt to this new marketplace, many companies are developing multicultural marketing programs, which are combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races. Because businesses must now market their products to a consumer base with many racial and ethnic identities, in-depth marketing research that allows an accurate understanding of each culture is essential.
Additional analysis of population demographic data, such as the information shown in , suggests that racial and ethnic groups tend to be concentrated in geographic regions. This information allows companies to combine their multicultural marketing efforts with regional marketing activities. Consider, for example, that 48 percent of Asian Americans live in Los Angeles, New York City, and San Francisco and that two-thirds of Hispanics live in Florida, Texas, and California. Advertising Age’s Multicultural Agency of the Year, LatinWorks, describes itself as “passionate about helping brands navigate today’s cultural landscape.” The agency uses its expertise to create Hispanic campaigns for Anheuser-Busch, Domino’s Pizza, Chevrolet, Heinz, Lowe’s, Target, and many others. For example, LatinWorks created a series of ads for Chevrolet, such as the ad for the Chevy Cruze Eco shown above.