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Black Consumers and Shopping for Groceries - US - October 2017

"Product prices and selection are key drivers for where and when Blacks shop, but they are proud of their ability to maximize their budget while buying the brands and products they want on their list. Retailers that offer a pleasant atmosphere and convenience are included in their shopping routine, but incentives created just for them on top of their shopping expectations have the opportunity to increase store visits and maintain loyalty."
- Toya Mitchell, Multicultural Analyst

This Report looks at the following areas:

  • Black households are estimated to spend $60.6 billion on groceries in 2017
  • Walmart is the leading grocer among Black shoppers
  • Lower incidence of online grocery shopping may be tied to lack of service
  • Blacks shop at multiple stores for price and product mix
  • Young Black grocery shoppers expect the full experience
  • Coupon use may be low due to redemption restrictions and relevance

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Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

          • The insights
            • Black households are estimated to spend $60.6 billion on groceries in 2017
              • Figure 1: Black household spending on groceries*, at current prices, 2012-17
            • Walmart is the leading grocer among Black shoppers
              • Figure 2: Leading supermarkets and food stores Blacks shopped in the last 4 weeks, indexed to all, April 2016-May 2017
            • Lower incidence of online grocery shopping may be tied to lack of service
              • Figure 3: Blacks’ shopping locations, indexed to all*, May 2017
            • Blacks shop at multiple stores for price and product mix
              • Figure 4: Count of shopping locations, May 2017
            • Young Black grocery shoppers expect the full experience
              • Figure 5: Grocery shopping desired improvements, by age, May 2017
            • Coupon use may be low due to redemption restrictions and relevance
              • Figure 6: Household coupon use, by Black vs all, April 2016-May 2017
            • The opportunities
              • Communicate online grocery services directly to Black shoppers
                • Figure 7: TURF analysis – Desired grocery shopping improvements, May 2017
              • Provide customized coupons and promotions based on shopper data
                • Figure 8: Desired grocery shopping improvements, May 2017
              • Create events and promotions to increase shopping location frequency and loyalty
                • What it means
                • The Market – What You Need to Know

                  • Black household grocery expenditures expected to increase 2.3% in 2017
                    • Food and drink expenditures expected to rebound following 2016 decline
                      • Black households include more expanded family members and children
                        • Walmart is the primary store among Black grocery shoppers
                          • Supercenters are closing the access gap in food deserts
                          • The Black Population by the Numbers

                            • There are 43 million Blacks in the United States
                              • Figure 9: Population by race, 2012-22
                            • There are 15.8 million Black households, 13% of the total
                              • Figure 10: Number of households by race/Hispanic origin, 2016
                            • There are more children, but fewer adults in Black households
                              • Figure 11: Average number of people per family household, by race/Hispanic origin, 2016
                            • Black households include fewer married couples, but more expanded family members
                              • Figure 12: Family group by reference, 2016
                            • Black unemployment lowest in 17 years, but higher than the total US
                              • Figure 13: Consumer confidence, total US and Black unemployment, 2000-July 2017
                            • More than half of Blacks have some post-secondary education
                              • Figure 14: Educational attainment by race/Hispanic origin, 2016
                            • Black households earn less, but middle-income status on par with the average
                              • Figure 15: Household income distribution by Black and total US, 2015
                          • Market Size

                            • Black household estimated grocery expenditures total $60.6 billion
                              • Figure 16: Black household spending on groceries*, at current prices, 2012-17
                          • Market Breakdown

                            • Grocery expenditures increase 2-3% across all categories
                              • Figure 17: Black household spending on groceries*, by segment, at current prices, 2012-17
                            • Food and drink expenditures expected to rebound from 2016 drop
                              • Figure 18: Black household spending on food and drink*, at current prices, 2012-17
                            • Household goods expenditures continue to grow, but not at same 2016 rate
                              • Figure 19: Black household spending on household goods*, at current prices, 2012-17
                            • Health and beauty care product expenditures steadily increase
                              • Figure 20: Black household spending on HBC products*, at current prices, 2012-17
                            • Food and drink share falls, while households’ expenditure share increases
                              • Figure 21: Share of Black household spending on groceries*, by segment, indexed to all, 2015 and 2017
                          • Market Perspective

                            • Walmart is the leading grocery shopping destination among Black shoppers
                              • Figure 22: Walmart Black-targeted TV commercial, “Here’s to Bonding” | Celebrate Walmart, 2017
                              • Figure 23: Leading supermarkets and food stores Blacks shopped in the last 4 weeks, indexed to all, April 2016-May 2017
                            • Black grocery shoppers are less likely to use loyalty cards or coupons
                              • Figure 24: Shopper reward, loyalty, discount cards used within last four weeks, by Black vs all, April 2016-May 2017
                              • Figure 25: Household coupon use, by Black vs all, April 2016-May 2017
                            • Blacks reference of in-store communication varies from the general market
                              • Figure 26: Grocery store shopping references, by Black vs all, indexed to all, April 2016-May 2017
                          • Market Factors

                            • More than one third of Black households receive nutrition assistance
                              • Figure 27: Distribution of participating SNAP households by race/Hispanic origin of household head, 2015
                            • Black shoppers more likely to live in low income, low access grocery store areas
                              • Figure 28: Percentage of US households living in LILA and non-LILA areas, by race/Hispanic origin, 2015
                            • LILA grocery store shoppers more likely to shop at supercenters
                              • Figure 29: Percent of food dollars spent by LILA and non-LILA households, 2015
                            • Supercenter grocery store access has increased in low- and moderate-income areas
                              • Figure 30: Number of stores, by store type and census tract income, 2010-15
                            • Blacks’ share of expenditures higher on meats and grains, lower on shelf stable products
                              • Figure 31: Annual expenditure percentage on food at home, race/Hispanic origin, Q3 2015-Q2 2016
                          • Key Players – What You Need to Know

                            • Restricted delivery services may deter buying groceries online
                              • Government nutrition program partners with private farmers to expand shopper market
                              • What’s Working?

                                • Expansion of supercenters into underserved areas attracts shoppers
                                  • Farmers’ market SNAP partnership extends value and expands access to fresh food for participants
                                  • What’s Struggling?

                                    • Online grocery doesn’t provide necessary sensorial experience for Black shoppers
                                      • Grocery delivery excludes Black neighborhoods
                                      • What’s Trending?

                                        • Black-owned grocery stores filling in food deserts
                                          • Grocery innovations geared toward discount shoppers
                                          • The Consumer – What You Need to Know

                                            • Walmart is Blacks’ favorite one-stop shopping destination
                                              • Black women are the primary grocery shoppers, which increases once they marry
                                                • Single Black men shop at more grocery stores vs women
                                                  • Older Blacks want convenience, younger Blacks seek the experience
                                                    • Blacks are less likely to shop online, but want more grocery ordering services
                                                      • Blacks are less likely to use coupons, perhaps due to lack of value
                                                      • Grocery Shopping Responsibility

                                                          • Two thirds of Black shoppers are solely responsible for their households’ grocery shopping
                                                            • Figure 32: Black consumers’ grocery shopping responsibility, indexed to all, May 2017
                                                          • Black women are more likely to be the sole grocery shopper
                                                            • Figure 33: Grocery shopping responsibility, by Black vs all, by gender, May 2017
                                                          • Single Blacks buy their own groceries, but responsibility shifts to women when they marry
                                                            • Figure 34: Grocery shopping responsibility, by marital status, May 2017
                                                        • Grocery Shopping Location and Frequency

                                                            • Most Black shoppers buy groceries at supermarkets, but Walmart is a close second
                                                              • Figure 35: Blacks’ shopping locations, indexed to all*, May 2017
                                                            • “Stock up” shopping dominates grocery store trips
                                                              • Figure 36: Shopping location, by frequency, May 2017
                                                            • Most Blacks shop at 6-8 stores to fulfill their grocery list
                                                                • Figure 37: Count of shopping locations, May 2017
                                                              • Married/partnered Black women drive up the average number of shopping locations
                                                                • Figure 38: Count of shopping locations, by marital status and gender, May 2017
                                                            • Factors Influencing Shopping Locations

                                                                • Price, followed by store proximity is key in choosing where to shop
                                                                  • Figure 39: Factors influencing shopping location, May 2017
                                                                • Black shoppers aged 55+ expect a convenient and pleasant shopping experience
                                                                  • Figure 40: Factors influencing shopping location – Select items, by age, May 2017
                                                                • Upper-income Blacks prefer the best shopping experience; lower-income Blacks seek convenience
                                                                  • Figure 41: Factors influencing shopping location – Select items, by household income, May 2017
                                                                • Married Black women’s store experience combines convenience with preferred product selection
                                                                  • Figure 42: Factors influencing shopping location, by gender and marital status, May 2017
                                                              • Grocery Categories Shopped by Store Type

                                                                  • Walmart offers one-stop shopping across category
                                                                    • Figure 43: Store types shopped, by category, May 2017
                                                                  • Older Black women buy meal ingredients at supermarkets, younger Black men shop for pre-prepared foods
                                                                    • Figure 44: Supermarkets shopped – Select categories, by gender and age, May 2017
                                                                  • Blacks with a high school diploma less likely to shop at supermarkets
                                                                    • Figure 45: Supermarkets shopped – Select categories, by educational attainment, May 2017
                                                                  • Walmart is the preferred store among Black Southerners
                                                                    • Figure 46: Walmart shopped, by region, May 2017
                                                                  • Black high school grads shop at Walmart across income
                                                                    • Figure 47: Walmart shopped – Select categories, by educational attainment, May 2017
                                                                  • Upper-income Blacks more likely to shop at other mass retailers, but still prefer Walmart
                                                                    • Figure 48: Walmart and other mass merchandisers shopped – Select categories, by household income, May 2017
                                                                  • Blacks aged 18-34 buy club store prepared foods, older Blacks shop for meal prep and household goods
                                                                    • Figure 49: Club stores shopped – Select categories, by age, May 2017
                                                                  • Lower-income Blacks who shop at discount stores buy food for meal prep and household goods
                                                                    • Figure 50: Discount stores shopped – Select categories, by household income, May 2017
                                                                • Blacks’ Grocery Shopping Attitudes and Behaviors

                                                                    • Grocery prices dictate where and when Blacks shop
                                                                      • Figure 51: Black consumers’ grocery shopping attitudes and behaviors, indexed to all, May 2017
                                                                    • Black women are more concerned with grocery prices and products in comparison to Black men
                                                                      • Figure 52: Grocery shopping attitudes and behaviors, by gender, May 2017
                                                                    • Grocery shopping is an experience for Blacks aged 18-34
                                                                      • Figure 53: Grocery shopping attitudes and behaviors, by age, May 2017
                                                                    • Price rules among low-income Blacks, but upper-income Blacks most likely to bargain hunt
                                                                      • Figure 54: Grocery shopping attitudes and behaviors, by household income, May 2017
                                                                  • Blacks’ Grocery Shopping Desired Improvements

                                                                      • Product/brand savings and sampling top Black shoppers’ list of improvements
                                                                        • Figure 55: Grocery shopping desired improvements, indexed to all, May 2017
                                                                      • Reducing risk and adding services would spur store visits
                                                                        • Figure 56: TURF analysis – Desired grocery shopping improvements, May 2017
                                                                        • Figure 57: Table – TURF analysis – Desired improvements, July 2017
                                                                      • Black women more likely to want tailored promotions, services and convenience
                                                                        • Figure 58: Grocery shopping desired improvements, by gender, May 2017
                                                                      • Blacks aged 55+ look for grocery savings, Blacks aged 18-34 want a shopping experience
                                                                        • Figure 59: Grocery shopping desired improvements, by age, May 2017
                                                                    • Appendix – Data Sources and Abbreviations

                                                                      • Data sources
                                                                        • Sales data
                                                                          • Consumer survey data
                                                                            • Consumer qualitative research
                                                                              • Abbreviations and terms
                                                                                • Abbreviations
                                                                                  • TURF Methodology
                                                                                  • Appendix – The Market

                                                                                      • Figure 60: Black household spending on groceries*, at current prices, 2012-17
                                                                                      • Figure 61: Black household spending on groceries*, by segment, at current prices, 2012-17
                                                                                      • Figure 62: Black household spending on groceries*, by segment, at current prices, indexed to general market, 2015 and 2017
                                                                                      • Figure 63: Black household spending on food and drink*, at current prices, 2012-17
                                                                                      • Figure 64: Black household spending on household goods*, at current prices, 2012-17
                                                                                      • Figure 65: Black household spending on HBC products*, at current prices, 2012-17
                                                                                  • Appendix – The Consumer

                                                                                      • Figure 66: Leading supermarkets and food stores shopped in the last 4 weeks, by Black vs all, April 2016- May 2017
                                                                                      • Figure 67: Shopper reward, loyalty, discount cards used within last four weeks, by Black vs all, April 2016-May 2017
                                                                                      • Figure 68: Household coupon use, by Black vs all, April 2016-May 2017
                                                                                      • Figure 69: Grocery store shopping references, by Black vs all, April 2016-May 2017

                                                                                  Companies Covered

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                                                                                  Black Consumers and Shopping for Groceries - US - October 2017

                                                                                  US $3,995.00 (Excl.Tax)