Expert's View

The Time for Multicultural Beauty Marketing is NOW

As population demographics shift, communicating brand relevance is more important than ever.

If you’ve been reading my columns over the years, you are well aware that I have been writing and speaking about the need for the beauty industry to market to multicultural consumers for nearly two decades now.

According to the U.S. Census Bureau’s 2020 Census data, the Hispanic boom accounted for almost half of overall U.S. population growth, which was the slowest growth rate since the Great Depression. By comparison, the non-Hispanic growth rate over the last decade was 4.3%. The Hispanic share of the U.S. population grew to 18.7% of the U.S. population, up from 16.3% in 2010.

The share of the white population fell from 63.7% in 2010 to 57.8% in 2020, the lowest on record, driven by falling birthrates among white women compared with Hispanic and Asian women. The number of non-Hispanic white people shrank from 196 million in 2010 to 191 million. “The U.S. population is much more multiracial and much more racially and ethnically diverse than what we have measured in the past,” said Nicholas Jones, director and senior advisor of Race and Ethnic Research and Outreach, The U.S. Census Bureau.

Some demographers cautioned that the white population is not shrinking as much as shifting to multiracial identities. The number of people who identified as belonging to two or more races more than tripled from 9 million people in 2010 to 33.8 million in 2020, AP reports. They now account for 10% of the U.S. population.

Understanding Different Types of Beauty Consumers

Ok – so our population is shifting. What does that mean to the beauty market?

Let’s look at the habits, practices, and spending habits of two major minority groups – LatinX and African Americans.

While Latinas may not all look alike, their culture is the primary unifier. Beauty is a significant part of every Latina’s upbringing. Women are taught that Vanidad (translates to vanity in English) is a positive attribute. From a young age, their mothers and grandmothers instill in them that beauty is part of their lives and pass on their secrets to them.

  Latinas consider outward beauty a part of self-confidence rather than the superficial for external validation. In turn, they appreciate and understand other Latinas and their beauty approach, openly acknowledging their counterparts’ investments in their appearance.  

Hispanics are the second largest demographic group in the U.S., representing 19.5% of the population in 2019. Buying habits differ for Spanish-speaking Hispanics versus English-speaking Hispanics.

According to Mintel, Latinx women spent over $2 billion on cosmetics alone in 2019. Research from Nielsen shows that these consumers spend 30% more than other ethnicities on beauty products—Latinx women spend $167 annually on beauty versus $135 spent annually by general population consumers.   

Overall for Latinas, their mindset on beauty is similar across all life-stages, creating a significant opportunity for brand loyalty. However, marketers must still communicate in relevant and authentic ways across each generation.

There are shifts in the market – hair care brands created specifically for Latinas – such as Latin Us Beauty, shown above, are recognizing success because they have appealed to multi-generational Latinas in an authentic and relevant way.

This brand created a Telenovela to draw consumers into the brand, to tell the story of how natural ingredients were used to formulate the product, versus trying to communicate the story relying solely on the packaging. The video (see it below) features three different generations of Latina actresses to clearly communicate brand relevance to Latinas of all ages.

Now to the African American beauty consumer and why he/she/they are so attractive to general market beauty companies.

In 2017 African Americans spent $127 million on grooming aids and $465 million on skin care, according to Nielsen.

The total buying power of African Americans is projected to rise from $1.3 trillion to $1.54 trillion in 2022. In 2018 the Black hair care industry took in an estimated $2.51 billion, as Black consumers consciously made the change from general market products to those that are created specifically for them.

In 2017 African-Americans represented 86% of the ethnic beauty market, accounting for $54 million of the $63 million spent. Nielsen reported   54% of the African American population have lived their entire life in the digital age with social media usage higher than any other group of people and a mobile usage rate of 81%.

 Further, 44% of African Americans are more likely to engage with brands online vs. Caucasian Americans, creating substantial opportunities for beauty marketers in the digital space and causing some brands to question investing in brick and mortar at all. 

Add all of this up with the data from the latest U.S. Census where more of our population self- identifies as more than one race, and you have a beauty market ripe with opportunity. If you haven’t started to dig into multicultural marketing and consumers, the time is now! These consumers are only growing in numbers and they are the future of this category in the United States.