It is estimated that there are 22.6 million Asian Americans whose collective purchasing power topped $1 trillion in 2018, and this is expected to rise to $1.3 trillion by 2023, according to new analysis of this important demographic.

Research firm Nielsen said the Asian American community has the highest growth rates in population and spending power of any US ethnic or racial group and therefore offers “unparalleled” marketing opportunities for brands over the next decade.

The number of Asian Americans has grown 45% over the past decade, compared to the US average of 8%, and their household income – buoyed by having households that are 17% larger – averages $85,000 compared to $60,000 for the overall US population.

The Nielsen report, entitled Informed Influencers and Powerful Purchasers: The Asian American Consumer Journey, also revealed that the community is especially tech-savvy and open to online shopping.

For example, 99% of Asian American households have internet access, compared with 93% of the total population, while 87% made an online purchase in the last 12 months (over-indexing by 22%).

More than two-thirds (68%) also used the internet or apps for shopping over the previous 30 days – again, over-indexing the general population by 22%.

Furthermore, 83% of Asian American households subscribe to at least one SVOD service, such as Netflix, Hulu or Amazon Prime Video (19% higher than the total population).

But for Nielsen, one of the most important findings is the circular nature of the Asian American consumer journey – the tendency to review products before purchase and then, if satisfied, to review and recommend on social media.

Three-quarters (74%) of Asian Americans read online reviews when considering a product, making them “fervent” consumers of reviews who are “passionate” about sharing their opinions on products and services, Nielsen said.

With the community 50% more likely to use the internet or apps for consumer reviews, the report recommended that “companies looking to drive growth with Asian American consumers must have a robust digital outreach strategy that also speaks to the diverse cultural experiences of these consumers that, in tandem, drive their unique consumer journeys”.

Sourced from Nielsen; additional content by WARC staff