Table of Contents
Executive Summary
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- Market overview
- Top takeaways
- Key Takeaway Video
- The insights
- Black shopper segments highlight different levels of engagement
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- Figure 1: Black grocery shopping segments, October 2019
- Black consumers enjoy looking for deals, but less likely to use coupons
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- Figure 2: Coupon source, total vs Black, April 2018-June 2019
- Walmart and supermarkets lead grocery retailing, third choice locations based on budget and convenience
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- Figure 3: Preferred grocery shopping locations, by rank, October 2019
- Price leads value proposition, but other product attributes are important based on category
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- Figure 4: Center of the store non-edible and food/drink purchase factors, October 2019
- What it means
The Market – What You Need to Know
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- Black households reflect more diverse composition vs total US
- Grocery spending reaches an estimated $63 billion in 2019
- Black grocery spending as share of disposable income is similar to total
- Flat food prices expected to hold through 2020, with increases in several categories
- Black consumers enjoy deals, but lag in coupon use
The Black Population by the Numbers
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- Black population holds steady at 44 million people
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- Figure 5: US population by race/Hispanic origin, 2019
- Greater diversity in Black household structure impacts shopping responsibility
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- Figure 6: Household type by race/Hispanic origin, 2019
- Same number of adults, but more children in Black families
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- Figure 7: Average number of people per family household, by race/Hispanic origin, 2019
- Most Black people live in the South
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- Figure 8: Distribution of the Black population, by census region, 2018
- Figure 9: Migration flow to census region by total and Black population, 2017-18
Market Size
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- Flat grocery spending belies Black shopping behavior
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- Figure 10: Black household spending on groceries*, at current prices, 2014-19
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- Figure 11: Black household spending on groceries*, at inflation-adjusted prices, 2014-19
Market Breakdown
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- Black household grocery spending share on par with total for food and drink and household
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- Figure 12: Share of Black households’ spending on groceries – by segment, indexed to all, 2019
- Figure 13: Black household spending on groceries*, by segment, at current prices, 2014-19
- Food expenditures account for two thirds of grocery spending
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- Figure 14: Black household spending on food and drink*, at current prices, 2014-19
- Figure 15: Black household spending on food and drink*, at inflation-adjusted prices, 2014-19
- Black consumer spending on household goods reflect home size and cleaning behavior
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- Figure 16: Black household spending on household goods and cleaning products*, at current prices, 2014-19
- Figure 17: Black household spending on household goods and cleaning products*, at inflation-adjusted prices, 2014-19
- Black women are buying beauty products along with other grocery items – for now
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- Figure 18: Black household spending on HBC products*, at current prices, 2014-19
- Figure 19: Black household spending on HBC products*, at inflation-adjusted prices, 2014-19
Market Factors
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- Food prices flat across categories with few exceptions
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- Figure 20: Consumer food price indexes, 2017-20
- Black households’ income increases, but lower than everyone else’s
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- Figure 21: Median household income in current dollars, by race/Hispanic origin, 2008-18
- Figure 22: Inflation-adjusted median weekly earnings percent change, by race/Hispanic origin, 2007 vs 2017
Market Perspective
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- Walmart, distantly followed by Kroger, top grocery store visits
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- Figure 23: Top 15 supermarkets and food stores shopped, total vs Black, April 2018-June 2019
- Convenience is important to all, but less so among Black shoppers
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- Figure 24: Attitudes toward shopping, total vs Black, April 2018-June 2019
- Brand equity and product expectations drive consideration, promotional offers drive purchase
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- Figure 25: Shopping behavior, total vs Black, April 2018-June 2019
- Lower coupon use may be tied to complicated rules and unappealing brand offers
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- Figure 26: Coupon usage, by type, total vs Black, April 2018-June 2019
- Black coupon users less likely to receive or be aware of offers
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- Figure 27: Coupon source, total vs Black, April 2018-June 2019
Key Trends – What You Need to Know
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- Walmart makes changes to improve produce department
- Amazon enters crowded, competitive retail category with a standalone store
What to Watch
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- Walmart overhauls perimeter of store in response to negative consumer perception
- Amazon set to launch new grocery chain in 2020
The Consumer – What You Need to Know
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- Mintel’s Black shopper segments’ highlight process and willingness to deal shop
- Primary shopping responsibility mirrors the average
- Walmart and supermarkets dominate for retailer preference
- Deal hunting leads the grocery shopping process
- Values differ between food and non-edible packaged products
- Black consumers will forgo brand and store preferences to take advantage of deals
Black Grocery Shopping Segmentation
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- Grocery shopping attitudes span from enjoyable activity to unavoidable chore
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- Figure 28: Black grocery shopping segments, October 2019
- Variety Shoppers enjoy the experience
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- Figure 29: Profile of Variety Shopper segment, October 2019
- Traditional Shoppers have a honed shopping process
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- Figure 30: Profile of the Traditional Shopper, October 2019
- Chore Shoppers shop where they can find the cheapest product available
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- Figure 31: Profile of the Chore Shopper, October 2019
Grocery Shopping Responsibility
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- Black consumers less likely to have help with grocery shopping
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- Figure 32: Grocery shopping responsibility, total and Black, October 2019
- Middle-aged Black women more likely to get some relief
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- Figure 33: Grocery shopping responsibility, by female gender and age, total vs Black, October 2019
- More single Black men have grocery shopping responsibility
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- Figure 34: Grocery shopping responsibility, by male gender and age, total vs Black, October 2019
Preferred Grocery Shopping Locations
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- Walmart’s product mix and price beats all other grocery outlets
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- Figure 35: Preferred grocery shopping locations, October 2019
- Low-priced, name-brand products drive third-ranked shopping locations
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- Figure 36: Preferred grocery shopping locations, by rank, October 2019
- Bargain shoppers go to Walmart while supermarkets serve an aging clientele
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- Figure 37: Preferred grocery shopping locations, by age and household income, October 2019
- Two thirds of Black southerners shop at Walmart
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- Figure 38: Preferred grocery shopping locations, by region, October 2019
Grocery Shopping Behavior
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- Stores with the best deals by category earn Black shoppers’ dollars
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- Figure 39: Grocery shopping behavior, October 2019
- Older consumers create and follow a shopping plan prior to their in-store visit
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- Figure 40: Grocery shopping behavior, by gender and age, October 2019
- Affluent householders plan their shopping trips based on product availability
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- Figure 41: Grocery shopping behavior, by household income, October 2019
Center-of-Store Food Purchase Factors
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- Low prices and taste drive packaged food purchases
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- Figure 42: Center-of-store food purchase factors, total vs Black, October 2019
- Ingredient quality in packaged food is less important for younger Black women
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- Figure 43: Center-of-store food purchase factors, by female gender and age, October 2019
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- Figure 44: Center-of-store food purchase factors, by female gender and age, total and Black, October 2019
- Middle-aged men place value in product expectation over price
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- Figure 45: Center-of-store food purchase factors, by male gender and age, October 2019
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- Figure 46: Center-of-store food purchase factors, by male gender and age, total and Black, October 2019
- Affluent households more likely to buy premium packaged foods
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- Figure 47: Center-of-store food purchase factors, by household income, October 2019
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- Figure 48: Center-of-store food purchase factors, by household income, total and Black, October 2019
Center-of-Store Non-edible Purchase Factors
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- Price still rules, but brand trust more important than product attributes
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- Figure 49: Center of the store non-edible purchase factors, October 2019
- Household and personal goods must perform to expectations – food must taste good
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- Figure 50: Center of the store non-edible and food/drink purchase factors, October 2019
- Upper-middle-income households purposefully shop where they know they will find the best products
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- Figure 51: Center of the store non-edible purchase factors, by household income, October 2019
- Parents show concern for the kids’ exposure to household product ingredients
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- Figure 52: Center of the store non-edible purchase factors, by parental status, October 2019
Attitudes toward Grocery Shopping
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- Getting a deal is important, even if they have to switch brands or stores
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- Figure 53: Attitudes toward grocery shopping, October 2019
- Enjoying the grocery shopping experience is limited to those who can afford to
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- Figure 54: Attitudes toward grocery shopping – Deal Shopping, by segments, October 2019
- Convenience for most is limited to getting in and out of the store
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- Figure 55: Attitudes toward grocery shopping – Convenience, by segments, October 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Consumer
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- Figure 56: Top 15 supermarkets and food stores shopped, total vs Black, April 2018-June 2019
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- Figure 57: Attitudes toward shopping, total vs Black, April 2018-June 2019
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- Figure 58: Shopping behavior, total vs Black, April 2018-June 2019
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- Figure 59: Coupon usage, by type, total vs Black, April 2018-June 2019
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- Figure 60: Coupon source, total vs Black, April 2018-June 2019
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