New Research from IRI shows that Lower-income Shoppers including African American and Hispanics Are Driving Today's CPG Growth

Lower-income shoppers are the fastest-growing income group in the United States and will generate $84 billion in incremental spending during the next decade. The latest research from Information Resources, Inc. (IRI) reveals that these consumers represent an enormous opportunity for retailers and manufacturers during the slow economy, if they understand that lower-income shoppers are not a homogenous group. “The Lower-Income II Report: Serving Budget-Constrained Shoppers in a Recessionary Environment” uncovers the critical differences and recessionary spending patterns and behaviors of lower-income micro segments that are driving today’s CPG growth.
For example, the biggest concerns now for African American moms is Crime (54%), Hispanic moms is Employment (67%) and Caucasian moms is Financial Security (54%).
Compared with other income groups in today’s economy, budget-constrained, lower-income shoppers are shopping more frequently, but are spending less per trip. They are also aggressively shifting spending across channels, retailers, categories and brands. African American household spending has increased notably in salty snacks and chocolate candy, and Hispanics have increased their spending on frozen dinners and cereals.