The U.S. population is going to become more and more ethnically diverse over the next 40 years, according to new projections from the U.S. Census Bureau. This data, and how you put it to use, will impact your business both today and in the future.
Here’s a closer look:
- Minorities will become a majority of the U.S. population by 2042 (currently, approximately one-third of Americans are minorities). This change will happen faster among children. Today, 44 percent of U.S. children are minorities; by 2023, more than half of children will be minorities.
- The Hispanic population is projected to nearly triple by 2050, when one in every three U.S. residents will be Hispanic (currently, one in six is). By 2050, 39 percent of children will be Hispanic. The non-Hispanic white population will shrink from its current 66 percent to 46 percent by 2050.
- Also expected to grow is the number of Americans who identify themselves as multiracial. This group will more than triple to more than 16 million, or 4 percent of the population.
- The working-age percentage of the population will decrease from 63 percent to 57 percent by 2050, and will also become majority minority — 30 percent Hispanic, 15 percent black, and nearly 10 percent Asian.
You shouldn’t waste any time adapting your business to these new statistics.
First, you’ll need to become more culturally sensitive, if you haven’t already. Especially if you’re targeting younger customers, you should include various racial groups in your ad campaigns. Depending on where you’re located and your target market, you may need to invest in Spanish-language marketing or hire multilingual customer-service employees.
Second, look for ways to expand your business to take advantage of these changing demographics. The growing population of older Americans will be a hot market for products and services related to personal finance and health care, as they try to stay healthy and manage their money. Meanwhile, the younger, mostly minority population will be seeking products and services to help them with life challenges such as work, child-rearing, and buying homes. And it’s very likely your future employees will be drawn from a more diverse base.
Rieva Lesonsky