2021
9
US Black Consumers: Digital Trends and Impact of COVID-19 One Year Later Market Report 2021
2021-04-20T04:03:52+01:00
OX1045135
3695
136830
[{"name":"Black Americans","url":"https:\/\/store.mintel.com\/industries\/demographics\/black-americans"},{"name":"Technology","url":"https:\/\/store.mintel.com\/industries\/technology"}]
Report
en_GB
“Black consumers are enthusiastic adopters of digital technology and this remained true even throughout the incredible difficulties of the pandemic. Many became more dependent on technology during this time and…

US Black Consumers: Digital Trends and Impact of COVID-19 One Year Later Market Report 2021

£ 3,695 (Excl.Tax)

Description

This report provides comprehensive and current information and analysis of digital trends amongst Black consumers, including digital market size, anticipated market forecast, relevant market segmentation, and industry trends for the Black digital consumers market in the US.

Current digital consumer trends market landscape

Throughout the COVID-19 crisis, digital technology has literally been a lifeline for consumers. These tools have been particularly critical for Black consumers, who have been disproportionately impacted by both the health and economic consequences of the pandemic. Meanwhile, the Black Lives Matter movement has made staying informed and connecting with community more essential than ever for Black consumers.

Market share and key consumer digital marketing industry trends

  • COVID-19 drives upgrades. While the pandemic had a harsh economic impact on Black consumers, the new demands of remote work and school forced many to improve their internet service and purchase new hardware. While tech ownership levels were already quite high amongst the Black community, many are reliant on smartphones. Due to COVID-19, getting more devices for individual members of the household became more of a priority.
  • The digital divide remains real. Young Black consumers are very tech-savvy and even lower-income members of this group have made investing in digital devices a priority. However, there is a pronounced gap for less affluent older Black consumers. The surging Black Lives Matter movement also placed new focus on long-term inequities at many leading tech firms, which has undoubtedly resulted in fewer products focused on Black consumers, in addition to more serious consequences.
  • Continued opportunity ahead. In the short term, tech purchasing may subside somewhat as so many Black consumers made purchases due to COVID-19, boosting tech hardware spending. Communications services have historically accounted for a greater share of spend for this group; however, intense competition among telecoms and ISPs has kept pricing in check and spending on communications are estimated flat for the year. As most are happy with their level of service, widespread upgrades will be unlikely. However, interest in digital hardware remains strong, particularly for smartphones and gaming, making Black consumers a critical audience for brands to win.

Future market trends in digital trends amongst Black consumers

In this report, Mintel examines Black consumers’ purchase and usage patterns for digital devices and communication services, showing how COVID-19 has affected these trends and how brands can best connect with this important audience.

Read on to discover more about the digital trends amongst Black consumers market, read our US Marketing to Black Moms Market Report 2021, or take a look at our other African American research reports.

Quickly understand consumer behavior in digital marketing

  • The composition and spending power of the Black consumer audience and how it shapes their need for digital products.
  • The impact of COVID-19 on Black consumers’ purchase and usage behavior for digital devices and services.
  • How tech companies are seeking to connect with Black consumers.
  • Market opportunities for digital products amongst the Black consumer audience.

Covered in this digital consumer market report

Brands include: Amazon, Apple, Facebook, Google, Twitter, LinkedIn, AT&T, Beats, Dell, Spotify, TikTok, LG, Motorola, CTL, T-Mobile, Verizon, Instagram, Samsung.

Notables include: Timnit Gebru, George Floyd, David Duke, Michael B. Jordan, Naomi Osaka, Sundar Pichai, Steve Bannon, Donald trump, Gavin McInnes, Dr. Dre, Solange Knowles, Lena Waithe.

Expert analysis from a specialist in the field

This report, written by Fiona O’Donnell, a leading analyst in the Multicultural sector, delivers in-depth commentary and analysis of the African American digital consumer to highlight current trends and add expert context to the numbers.

Black consumers are enthusiastic adopters of digital technology and this remained true even throughout the incredible difficulties of the pandemic. Many became more dependent on technology during this time and spent more on upgrading their services and hardware. Going forward, Black consumers will remain an important audience for tech products, particularly including smartphones and gaming consoles. However, the Black Lives Matter movement also focused attention on the failings of many tech companies to live up to social justice commitments, and companies will need to embrace change in order to grow amongst this audience.
Fiona O’Donnell, Sr. Director – Leisure and EntertainmentFiona O’Donnell
Director, Multicultural

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • Definition
    • COVID-19: US and market context
  2. Executive Summary

    • Top takeaways
    • Market overview
      • Figure 1: US sales of technology hardware and communication services, by all and Black consumers, at current prices, 2015-20
    • Impact of COVID-19 on Black consumers and technology and communications
      • Figure 2: Short-, medium- and long-term impact of COVID-19 on Black consumers and technology and communications, April 2021
    • Opportunities and Challenges
    • Young Black men are a key consumer group
      • Figure 3: Black consumers’ tech hardware ownership and purchase intent – Select items, by young men, January 2021
    • Parents seek to be prepared
      • Figure 4: Black consumers’ tech hardware ownership and purchase intent – Select items, by parental status, January 2021
    • Gaming is a key platform for younger Black consumers
      • Figure 5: Gaming console ownership, by all and Black consumer key demographics, January and February 2021
    • Values matter
  3. The Market – Key Takeaways

    • An important audience for brands to win
    • A growing market moderately impacted by COVID-19
    • Hardware outpaces services
    • Pandemic drives more serious efforts to address the digital divide
    • Growing trend of remote work due to COVID-19 less applicable
  4. Black Consumers by the Numbers

    • A stable share of the US population
      • Figure 6: US population, by race and Hispanic origin, 2016–26
    • Economic challenges remain
      • Figure 7: US household income distribution and median, by race and Hispanic origin of householder, 2019
    • A younger population
      • Figure 8: US population by age, by all and Black, 2021
    • More women head up households
      • Figure 9: US households by type, by all and Black, 2020
  5. Market Size Estimate

    • Consistent growth only temporarily disrupted by COVID-19
      • Figure 10: Total US sales of technology hardware and communication services, at current prices, by Black and non-Black consumers, 2015-20 (est)
    • Impact of COVID-19 on Black consumers and technology and communications
      • Figure 11: Short-, medium- and long-term impact of COVID-19 on Black consumers and technology and communications, April 2021
    • Immediate impact
    • Short term
    • Recovery
  6. Segment Performance

    • Hardware gains over services as devices multiply
      • Figure 12: Total US sales of technology hardware and communication services, by segment, at current prices, 2015-20 (est)
    • Spurts of growth for Black consumers
      • Figure 13: Black consumer expenditures on technology hardware and communication services, by segment, at current prices, 2015-20 (est)
  7. Market Factors

    • New efforts to close the digital divide
    • Pandemic brings greater economic pain
      • Figure 14: Labor force participation and unemployment (seasonally adjusted), by total and Black consumers, January 2007-February 2021
    • More vulnerability to illness and death
      • Figure 15: Difference between COVID-19 and unweighted/weighted* population, by race and Hispanic origin, September 2020
    • Black consumers more likely to be essential workers
      • Figure 16: Employed persons by certain detailed healthcare, transportation and sales occupations, by race and Hispanic origin, 2019
    • Relative to the average, fewer Black workers telecommute due to COVID-19
      • Figure 17: Teleworking during the Coronavirus Pandemic, by race and Hispanic origin, March 3-15, 2021
  8. Companies and Brands – Key Takeaways

    • Time for tech brands to step up
    • Some changes seen with social networks
    • Advertising that makes a statement
    • Big-screen phones, low-cost notebooks have appeal
  9. Competitive Strategies

    • Trend Drivers underpin company strategies and opportunities
      • Figure 18: Mintel Trend Drivers and Pillars – Rights, Identity and Surroundings
    • A reckoning for big tech
    • Social networks start taking stands
    • Representation matters
      • Figure 19: Amazon’s Big Game Commercial “Alexa’s Body” Ad – February 2021
      • Figure 20: Beats’ “Flex That Voice” Ad – November 2020
  10. Market Opportunities

    • Phones that can truly do it all
      • Figure 21: LG Dual Screen
    • Chromebooks for the family
      • Figure 22: CTI Chromebook NL710-LTE
  11. The Consumer – Key Takeaways

    • Gaming is a key focus
    • Black consumers are buying many types of tech
    • Many are planning to buy
    • Pandemic led to spending on tech
    • Opportunity to market wearable tech for health
    • High levels of satisfaction with communication services
    • Enthusiastic about social, mixed views on virtual learning and events
  12. Tech Hardware – Home Entertainment Product Ownership

    • Strong adoption of gaming, room to grow with HDTV, audio
      • Figure 23: Home entertainment product ownership, by all and Black consumers, January and February 2021
    • Women lag men in home entertainment ownership
      • Figure 24: Black consumers’ home entertainment product ownership, by gender, February 2021
    • Younger, more affluent consumers a key target
      • Figure 25: Black consumers’ home entertainment product ownership, by age and household income, January 2021
  13. Tech Hardware – Personal Electronics Ownership

    • High levels of ownership for Black consumers
      • Figure 26: Personal electronics ownership, by all and Black consumers, January and February 2021
    • Black men more interested in entertainment, women in fitness
      • Figure 27: Black consumers’ personal electronics ownership – Select items, by gender, January 2021
    • Significant digital gap for less affluent seniors
      • Figure 28: Black consumers’ personal electronics ownership, by age and household income, January 2021
    • Parents particularly likely to own tablets, headphones
      • Figure 29: Black consumers’ personal electronics ownership, by parental status, January 2021
  14. Tech Hardware – Purchase Intent

    • An audience that is eager to buy
      • Figure 30: Tech hardware purchase intent, by all and Black consumers, January and February 2021
    • Young men pursue entertainment
      • Figure 31: Black consumers’ tech hardware purchase intent, by age and gender, January 2021
    • Less affluent consumers also interested in buying
      • Figure 32: Black consumers’ tech hardware purchase intent, by household income, January 2021
  15. COVID-19 Impact – Tech Purchases

    • Black consumers more likely to spend due to COVID-19
      • Figure 33: Black consumers’ tech use changes due to COVID-19, January 2021
    • More affluent Black consumers become more dependent
      • Figure 34: Black consumers’ tech use changes due to COVID-19, by age and household income, January 2021
    • Interest in hardware purchases also grows due to COVID-19
      • Figure 35: Tech purchases due to COVID-19, by all and Black consumers, January and February 2021
    • Men significantly more likely to buy most types of tech
      • Figure 36: Black consumers’ tech purchases due to COVID-19, by gender and age, January 2021
  16. Spotlight on Smartphones and Wearable Tech

    • Black consumers less loyal to Apple
      • Figure 37: Smartphone brands owned, by all and Black consumers, January and February 2021
    • Younger, more affluent significantly more likely to choose Apple
      • Figure 38: Black consumers’ smartphone brands owned, by age and income, January 2021
    • Early adopters of 5G?
      • Figure 39: Black consumers’ interest and ownership for 5G cell phones, by age and household income, January 2021
    • Interest in wearables as a health solution
      • Figure 40: COVID-19 impact on Black consumer attitudes toward wearable tech, by age, January 2021
  17. Communications – Internet and Mobile Services

    • Majority are happy with services
      • Figure 41: COVID-19 Impact on Black consumers’ attitudes toward internet and mobile service, by gender and by age, January 2021
    • Less affluent chose pre-paid wireless plans
      • Figure 42: Black consumers’ cell phone plans by type, by household income, January 2021
    • T-Mobile the most popular choice
      • Figure 43: Mobile network providers – all and pre-paid plans, by all and Black consumers, January and February 2021
    • Verizon leads in customer satisfaction
      • Figure 44: Black consumers’ satisfaction with mobile phone service, by network provider, January 2021
  18. Communications – Online Interactions and Social Media

    • Digital interactions are an important way to stay connected with family
      • Figure 45: COVID-19 impact on Black consumers’ attitudes toward online interactions, January 2021
    • Men more engaged with virtual events
      • Figure 46: COVID-19 impact on Black consumers’ attitudes toward online interactions, by gender, January 2021
    • An important audience for social
      • Figure 47: Daily visitation to social media sites, by all and Black consumers, January and February 2021
  19. Appendix – Data Sources and Abbreviations

    • Data sources
    • Sales data
    • Consumer survey data
    • Abbreviations and terms
    • Abbreviations
  20. Appendix – The Market

      • Figure 48: Total US sales of technology hardware and communication services, at current prices, 2015-20 (est)
      • Figure 49: Black consumer expenditures on technology hardware and communication services, at current prices, 2015-20 (est)
      • Figure 50: Total US sales of technology hardware and communication services, by segment, at current prices, 2015-20 (est)
      • Figure 51: Black consumer expenditures on technology hardware and communication services, by segment, at current prices, 2015-20 (est)

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

Below is a sample report, understand what you are buying.

Click to show report
2024 Sample Consumer Cover

Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

Trusted by companies. Big and small.

Want to speak to us directly?

Contact us with your enquiry and our expert global team can help.

Get in touch