Report: Native buying power increases

SEPTEMBER 8, 2000

The buying power of Native Americans and Alaska Natives increased by 81 percent over the last decade, although Indian people still trail other minorities, according to a new study released on Thursday.

Based on an analysis of the latest data available from the Census Bureau and other government agencies, the buying power of Native Americans will have increased 81 percent by 2001, says the University of Georgia report.

In more concrete numbers, Indian Country will have a total buying power of $34.8 billion in 2001, up from $19.2 billion in 1990.

Buying power is otherwise known as disposable income and it represents the amount of money a person can spend on goods and services, after taxes. Jeffrey M. Humphreys, director of economic forecasting at the Terry School of Business and the report's author, says businesses should pay close attention to the increase.

"Although they comprise less than one percent of the country's population, Native Americans control almost $35 billion in disposable income, which makes this diverse racial group economically attractive to businesses that cater to this target market," says Humphreys.

Humphreys also reports that Native purchasing power has increased 5.5 percent per year since 1990.

But although the percentage gain over the past decade outpaces that of whites (67 percent) and for the country as a whole (70.4 percent), Native Americans will account for 0.5 percent of the total United States' market in 2001, the same amount as in 1990.

Native Americans also trail African-Americans, Asian-Americans, and Hispanics in terms of growth and control of the market. Asian-American buying power will increase by 125 percent, representing $254 billion in 2001, the highest gain of all minorities.

Not surprisingly, the top 10 states in terms of Native population are also the top 10 states in terms of Native market share, although not necessarily in the same order.

California, the state with the largest Native population in the country, led the group. Native people in the state will have a total purchasing power of $5.6 billion in 2001. California's Native population is estimated at 313,642, or 0.9 percent of the state.

Oklahoma's Indians come in second, with a projected $3.5 billion in spending power. The Indian population there is estimated at 262,581, or 7.8 percent.

Texas rounds out the top three, with $2.1 billion in disposable income. Approximately 0.5 of the state is Native, or 97,412 persons.

The top 10 states in terms of share of buying power are also the top 10 states in terms of percentage of Native population. However, Native Americans are still under-represented by this measure.

Alaska Natives control 8.1 percent of the market in the state, although they represent 16.4 percent of the state's population. American Indians in Oklahoma control 4.8 percent, but make up 7.8 percent of the state. New Mexico Natives control 4.1 percent, but make up 9.5 percent of the state's population.

To get more information on various state rankings, view Native purchasing power by state

Get the Drug Use Report:
Buying Power at the Beginning of a New Century: Projections for 2000 and 2001 (Humphreys. Georgia Business and Economic Conditions. Terry College of Business, University of Georgia. Vol 60, No 4. July-August 2000)

Relevant Links:
The Selig Center for Economic Growth, University of Georgia - www.selig.uga.edu

Related Stories:
Native population on the rise (The Talking Circle 8/31)
Census data by state (The Talking Circle 8/31)