Asian and Hispanic households will outspend non-Hispanic Whites over the remainder of their lifetimes, according to the latest annual “American Marketscape DataStream” report from Geoscape. This partly owes to longer household lifespans, as each group has a longer life expectancy and lower median adult age than Whites.
Overall, an Asian household acquired today would have a cumulative spend of more than $2.6 million throughout its remaining lifespan, while a Hispanic household’s cumulative spend is estimated at more than $2.1 million.
By comparison, cumulative life spending by non-Hispanic White households is estimated to be slightly more than $1.8 million, while for Black households it is slightly more than $1.5 million. All of those figures are up from previous estimates released by Geoscape in 2013.
The report notes that with a median annual household income (HHI) of more than $69,000 and a mean HHI of more than $93,000, Asian-Americans and Pacific Islanders out-earn all other races and ethnicities.
By contrast, Hispanics trail the median household income by 21% ($42,700 vs. $53,880). The researchers caution, however, that consumer spending per household often is higher even if income is lower.
Indeed, a recent Gallup survey found Hispanics self-reporting a greater daily discretionary spend than any other race or ethnicity.
Overall, Geoscape estimates that total aggregate consumer spending this year will be:
- More than $710 billion for Hispanics;
- More than $630 billion for Black; and
- More than $340 billion for Asians & Pacific Islanders.
Identifying certain spending categories, the report notes that African-American spending is higher than other groups for health care, personal care and utilities, while Asian & Pacific Islander spending is particularly high relative to other groups in the personal insurance and pensions category.