Nielsen took a closer look at this burgeoning market to size the sector, get a better sense of where growth opportunities lie and how manufacturers and retails alike can leverage this exciting trend. Convenience stores were the most popular channel for consumers seeking RTD coffee. During the period March 2010 to February 2011, sales of the category in that channel grew more than 30 percent. Mom and Pop stores also saw a sizable increase in category sales, growing 26.4 percent during that period.

Manufacturers have been active in launching new products – more than a dozen each year since 2008. This has driven overall annual sales growth in the category of more than 30 percent (+39.3% 2009-2010, +30.4% 2010-2011). New packaging that is more convenient and easier to carry have also produced strong sales, with RTD coffee in foil/cartons posting a 114 percent sales increase during the one year period ended March 2011, and PET bottles up nearly 57 percent during the same period.

Each of the various coffee formats has role to play for coffee lovers. Canned coffees are primarily selected for their low prices, and consumers tend to be loyal to their brands. Convenience was also an important factor. Drip coffee is chosen primarily for its taste, while low price and variety of flavors also rank highly for consumers. Meanwhile, take-away coffee from cafés is selected primarily for their taste, while the outlets are easy to get to and offer a cozy atmosphere.

There are a number of ways retailers and manufacturers can boost sales in the coffee category:

• Expand packaging and flavor ranges: Research shows that new packaging formats propel RTD coffee sales. Packaging needs to be convenient to carry, maintain the beverage at the desired temperature and preserve the flavor so that it is as close as possible to freshly brewed coffee.
• Locate a café inside stores: Grocers and other retailers should give thought to locating a franchise or other café in the store to compel shopper to stay longer by providing a convenient place to relax.
• Ensure retail displays catch shoppers’ attention: Previously, RTD cans and cups were displayed by brand, with various flavors and containers adjacent to each other. But different packaging requires different display. Canned coffees should be arranged by price, with promotions on the left and new brands on the right of a shelf, thereby catching consumers’ attention. Cups, on the other hand, should be displayed by flavor horizontally and brand vertically.

“Coffee is all the rage in Korea, and there are no signs that demand is diminishing. But retailers and manufacturers need to continually innovate to keep consumers’ attention, be it through new flavors or containers or how those products are displayed. There’s ample room for growth in the market for those who know precisely what consumers want,” said ChunNam Park, Associate Director, Retailer Services, Nielsen Korea.

Several Western Europe economies, namely Germany, United Kingdom and France, reported moderate growth in Q1 with consumer spending between 1% and 4%. However, the escalating European debt crisis that has damped confidence in Q2 may impact future growth. In North America, the contrast between increasingly optimistic Canada and cautiously restrained U.S. is being reflected in dollar sales. Across both the U.S. and Canada consumers are cutting back on shopping trips, seeking value and establishing a balance of branded and store brand purchasing.

Advertising spending also improved in Q1 as 25 of the 31 countries reported in Nielsen’s Global Ad Spend Report experienced gains of greater than or equal to 5%. Two globally significant events – Winter Olympics and FIFA World Cup – were driving forces behind this trend. Economically struggling countries Japan, Ireland and Spain were the only countries with flat to declining ad spending in Q1.

What to Watch
In the second half of 2010, against the backdrop of a shaky global economy, consumers in emerging markets will remain more willing to spend on discretionary categories such as apparel, vacation and out-of-home entertainment. In the developed economies where a largely jobless recovery is taking place, the consumer remains very reticent as they are closely monitoring their spending. Value remains the mantra and the new normal is characterized by restraint.

Download the Q2 2010 Nielsen Economic Current.

“While the global economy is in better shape than it was nine months ago, (+7 index points compared to Q3 2009), the ongoing European debt crisis is a major setback to the global economic recovery anticipated this year,” said Dr. Venkatesh Bala, Chief Economist at The Cambridge Group, a part of The Nielsen Company. “U.S. consumers closely watched unemployment numbers, while Europeans witnessed the government implement new and in some cases, severe fiscal austerity measures amid stagnant job markets and a weakening Euro. Consumers in Western developed economies realized that the road to full economic recovery is going to take a bit longer than expected. In the ongoing weak-to-moderate growth environment, there is some risk for businesses of deflationary pressure, requiring close attention to improving pricing power through more effective deployment of media, innovation and channel marketing efforts.”

“In the U.S., consumers are still focused on repairing their household balance sheets with 45 percent allotting any remaining income (once they have covered their essential living expenses) to savings and paying off debt (37 percent),” said James Russo, Vice President, Global Consumer Insights at The Nielsen Company. “Until the labor market shows continuous improvement, consumer spending will not be sustainable.”

Nielsen’s Global Consumer Confidence Index tracks consumer confidence, major concerns and spending intentions among approximately 27,000 Internet users in 48 countries. In the latest round of the survey conducted between May 10 and May 26, 2010, consumer confidence fell in nine out of 24 European markets. The only non-European markets to post quarter-on-quarter declines were Australia, Thailand, United Arab Emirates, Taiwan, Brazil and Egypt.

Disparity Widens Between Developing and Emerging Markets
India (129 index points), Indonesia and Vietnam (both 119 index points) were the most optimistic nations in Q2, while consumer confidence in Spain plummeted by 10 index points to its lowest level on record at 69 index points from 79 in Q1 of this year.

“In Asia, major economies are experiencing growth headwinds in the form of higher inflation and asset price declines. While overall growth in China, India and elsewhere in Asia will still be strong, some slowdown can be expected as governments and central banks tighten monetary and fiscal policy. Businesses therefore need to exercise more prudence in their resource allocation within Asia,” said Dr. Bala.

Globally, 58 percent of people—the same number as in the previous quarter—said they are still in recession with a disparity in recovery sentiment widening between developed and emerging markets. Thirty-nine percent of Asia Pacific consumers and 51 percent of Latin Americans said they are still in recession compared to 84 percent of North Americans and 76 percent of Europeans. Among those in recession, one in five (21 percent) global consumers thinks the recession will last another year. However, this number increases among North Americans where nearly one in four (24 percent) believes the recession will linger for more than 12 months.

“For most of 2010, the U.S. has seen improvement in the job and housing markets supporting the increases in U.S. consumer confidence, but consumers are still very much focused on value and they continue to reduce their overall shopping trips,” said Todd Hale, Senior Vice President, Consumer & Shopper Insights, The Nielsen Company. “Retailers and manufacturers have responded with heightened promotional support and lower prices providing consumers with great deals. However, even with enhanced prices, consumer-packaged goods dollar and unit sales have declined in the latest three consecutive 4-week periods versus year ago.”

Regionally, consumer confidence steadily climbed three index points in Latin America, two index points in Asia Pacific and North America and one index point in Europe. Latin America topped regional consumer confidence levels at 102 index points, followed by Asia Pacific (101 index points), and Middle East, Africa, Pakistan (MEAP) with 89 index points. In North America, consumer confidence reached 88 index points, while Europe lagged behind as the least confident region at 79 index points.

European Debt Crisis Renews Uncertainty
While the pace of economic recovery accelerated in most Asian and Latin American markets, the spreading debt crisis in Europe resulted in consumer confidence reversing in most European markets. Consumer confidence fell in three out of the five biggest economies as European consumers came to grips with the extent of the debt crisis.

In Italy, consumer confidence retreated to its lowest level (71 index points) since Q1 2009 when it hit an all time low of 70 index points at the height of the global recession. “There is strong evidence of a W-shaped recovery for Italy as consumer confidence in Q2 reversed back into recessionary sentiment,” said Stefano Galli, Managing Director, Nielsen Italy. “High unemployment, economic stagnation and massive public spending cuts have caused consumers to further cut back on their discretionary spending and lifestyles. Budget-conscious Italians are continuing to turn to discounter shopping channels and private labels despite fast-moving consumer goods retailers and manufacturers intensifying promotions. We expect to see some signs of recovery starting from the second half of 2010.”

The economic situation in Spain is especially restrained, which is indicative of the 10 point index drop. With the highest unemployment in Europe (20 percent) and a reduction of government employees, Nielsen experts estimate the possibility of economic growth will move further out to 2012.

However, Germany—the region’s largest economy—posted a welcomed rebound with an increase of seven index points up to 81 from 74 index points in Q1, the highest increase in the region. In the second quarter, newly confident Germans began to open their wallets again and were among the world’s top 10 discretionary spenders on clothes and out-of-home entertainment. In fact, the German job market showed a rather robust upward trend and possible sign that consumers now believe that the worst has passed.

Struggling Baltic nations of Lithuania and Latvia both posted consumer confidence increases of six points each in Q2, although both remain among the most pessimistic nations in the world with low consumer confidence index scores of 52 and 56 respectively. “After two years of a deep economic recession in the Baltic countries, local financial institutions are forecasting a slow recovery at the end of 2010,” said Arturas Urbonavicius, Managing Director, Nielsen Baltics.

Brighter Asian and Latin American Prospects
Six out of the top 10 most optimistic nations in the second quarter came from Asia and all these markets posted consumer confidence increases quarter-on-quarter. Vietnam recorded the highest consumer confidence increase in Q2 soaring 18 index points to 119, while Singapore (which recorded the highest consumer confidence increase in Q1), posted another solid five index point gain from 107 in Q1 to 112 points in Q2.

“The enormous rise in optimism seen in the latest survey has taken ‘cautious’ out of Vietnam’s previous footing of ‘cautious optimism’,” said Darin Williams, Managing Director, Nielsen Vietnam “Vietnamese consumers are ready to spend, with new technology being the focus for many after they have paid for essential living expenses.”

Forty-seven percent of respondents in Vietnam stated they would spend excess cash on new technology—the highest percentage in Asia; 39 percent stated they would spend spare cash on new clothes—a huge jump from 23 percent in the last survey. In Q1, only 16 percent of Vietnamese stated they would invest their excess cash, this has increased to 31 percent in Q2.

“Financial product awareness and intent to use is also rising dramatically as banks and insurance companies have increased their advertising and Vietnamese have more spare cash on their hands,” Williams added.

“In Singapore, there is a significant drop in the percentage of people who think they are in a recession—just 17 percent in Q2 versus 28 percent in Q1,” said Joan Koh, Managing Director, Nielsen Singapore. “Almost one in two feels that now is a good time to buy things. After putting spare cash into savings, Singaporeans will spend on holidays, invest in shares of stocks/mutual funds, new clothes and pay off debts.”

Prospects also look brighter in the Philippines (113 index points), China (109 index points), and Columbia (105 index points), which all recorded consumer confidence highs in their respective markets. “After five quarters of continuous consumer confidence increases in China, the one point increase in Q2 represents steady growth coming from consumers in rural villages,” said Chris Morley, Managing Director, The Nielsen Company China.

Economic recovery and consumer confidence also accelerated in Mexico, which posted a consumer confidence increase of five index points compared to the first quarter of the year. “While positive shopping basket trends in Mexico and Colombia show a slow reactivation in consumption, the population is still concerned about economic and job prospects,” said Felipe Urdaneta, Managing Director, Nielsen Colombia.

Denmark (+5), Switzerland (+5), South Africa (+4) and the Netherlands (+3) also posted consumer confidence increases. For Denmark, the rise is a welcomed change for a country that has shown a steady decline, although the Danish market continues to be volatile and vulnerable. Switzerland’s own currency removes them from the Euro crisis and the Swiss are now ready to spend on postponed investments, apparel, travel and electronics.

Download Nielsen Global Consumer Confidence Index

In the clearest sign yet that economic prospects are improving rapidly across the region, six of the ten most confident consumer markets globally are from Asia Pacific, with positive consumer confidence level increases in the Q1 2010 Nielsen Global Consumer Confidence Index.

Richard Basil-Jones, Managing Director, Nielsen Media Asia Pacific comments “The latest Nielsen findings are the sign that marketers, manufacturers and retailers have been eagerly waiting for, as consumers’ spending intentions are turning into actual spending reality. In Q1 2010 global consumer confidence rebounded to the highest level since Q3 2007, however the positive news for marketers in Asia Pacific is that consumers are already upbeat on how they will utilize their spare cash, including 41% on holidays / vacations, 35% new clothes, out of home entertainment 29% and new technology 30%.

These discretionary spending considerations showed significant growth over the same findings in Q1 2009 and this is not lost on most marketers who are now back in growth mode. This is translating into advertising activity rapidly returning to pre GFC levels; where we now see the second consecutive quarter of media advertising growth across all 12 markets in Asia Pacific (compared to the same period in 2009)”.

“Based on the most recent ad spending results, the outlook for main media advertising across the remainder of 2010 appears extremely positive in all 12 markets.

The challenge for marketers however, will be strengthening their brand awareness and positioning where visibility diminished during the downturn. Consumers are out there spending and intending to loosen up their purse strings, so the onus is now on marketers to ensure their products and services return to top of mind” Basil-Jones summarised.

Qtr 1 2010 compared to Qtr 1 2009

• Ad spending in main media* across the region lifted to US$31.16 billion, an overall increase of 18%
• For the first quarter since Q3 2008, all 12 markets across the region recorded strong to bullish ad spend growth.
• Signs of a strong advertising recovery with second consecutive quarter of growth for all 12 markets across the region.
• Double digit ad spend growth across 10 markets drove overall growth in Q1 2010; led by India, Indonesia, Hong Kong, Philippines, Malaysia and Taiwan.
• In a quarter of bullish revenue growth, China dominated with 69% share of all main media ad spending.

12 months to March 2010 & YOY

• Overall ad spending results showed a YOY increase of 15%, to US$132.38 billion.
• As the advertising recession faded, increases YOY were evident across 9 Asia Pacific markets, including double digit increases in 6 markets.
• Still absorbing the impact of advertising downturns of 2009, declines YOY were recorded across 2 markets – Australia and South Korea.
• Television was the main driver of growth (+16%), Newspapers (+14%) and Magazines increased by 4% YOY.

Just one year ago, consumer morale hit an all-time low, and concern for job security and the economy were at the top of peoples’ minds.  With the economy strengthening and consumers feeling better about their job prospects and state of personal finances, work/life balance and health are once again key issues. 

The renewed optimism was driven largely by consumers in western China, who posted an eight point rise in confidence, helping to close the gap between the regions.  Consumers in Tier 5 locales (smaller towns, villages and rural areas) recorded a seven point increase in confidence from the previous quarter, thanks in part to a strong harvest late in the year as well as well-targeted government incentives.  All of this has translated into a renewed willingness to spend as consumers start the New Year.

“We saw a strong rebound in consumers’ willingness to spend, especially among Tier one and Tier five consumers.  Tier one consumers are more likely to be investing in stocks and bonds and planning holidays compared to people in other tier cities,” said Mitch Barns, Greater China President at The Nielsen Company. 

 Nonetheless, more than half of Chinese consumers continue to make it a high priority to put spare cash initially into savings, followed by investing in their children’s education and purchasing new clothing.

 Read the full press release.

“In the previous Nielsen Global Consumer Confidence survey conducted in March, we were seeing the first signs that as far as the world’s consumers were concerned, the recession had bottomed out. Three months later, they’re starting to embrace the idea of recovery – which is a major turning point,” said Jonathan Banks, Business Insights Director, The Nielsen Company.

In Nielsen’s latest survey, which polled 14,029 online consumers in 28 countries late in June, 71 percent of respondents thought their country was in recession – a positive reduction of six points from a high of 77 percent when the survey ran in March 2009.

“The BRIC and Asian markets have recorded the greatest jumps in Consumer Confidence Indices in the past three months,” noted Banks. “Consumer confidence in India jumped 13 Index points, and climbed 9 points in Japan, South Korea, Hong Kong and Indonesia. Consumer confidence rose 8 Index points in Taiwan and Brazil, and 7 points in Singapore, Turkey, Russia, Philippines and the UK. The only exceptions to this upswing were in the USA and New Zealand, which held flat in the second quarter, with Germany the only country to register a decline of one Index point,” said Banks.

Even in the market registering a small decline – Germany – there are encouraging signs that a recovery is imminent. According to the Nielsen survey, nearly one in three Germans (29%) said the recession would be over in the next 12 months, compared to only 22 percent three months ago. One in three Germans also thought “now is a good time to buy the things they want”, indicating a renewed willingness to spend on discretionary items. Thirty-eight percent described their personal finances as “good” for the next year.

“This is one of the strongest indicators of a global consensus among consumers that the worst is over, and that finally, there is light at the end of this long tunnel. And consumers in emerging and Asian markets are clearly of the view that they are driving in the recovery lane now,” added Banks.
The latest Nielsen Confidence numbers are a welcome return to positive, confident territory for consumers in the developed Asian markets of South Korea, Taiwan and Japan, who have been battling economic inertia and political instability for several quarters.

“Asian consumer confidence appears to have been boosted through successful government economic stimulus packages that were speedily and effectively implemented at the onset of the global recession,” noted Banks. In the world’s second largest economy, the Japanese government implemented tax breaks, introduced cash deductions and subsidies on new car purchases, as well as providing cash payment and premium gift coupon schemes to stimulate spending.

“As well as expanding credit terms to small and medium sized businesses, in Japan there are even incentives to purchase eco-friendly household appliances as part of the government’s new environmental policy, and national toll prices for motorways have been discounted to encourage domestic tourism,” observed Banks.

Stock market gains in the BRIC and Asian markets have also had a major impact on consumer confidence,” said Banks. More than any other region, stock markets in Asia have rallied and property prices are starting to regain their pre-recession values. Russia’s stock market is up 60 percent from the start of the year and Taiwan is up over 50 percent. Brazil and Singapore’s stock markets have gained around 40 percent in the past six months and the South Korea and Hong Kong stock markets are up over 30 percent. With stock market gains so intrinsically linked to consumer confidence in Asian markets, it’s no surprise that Asian consumers are most confident about a receding recession, led by Hong Kong (-14 pts), Taiwan (-13 pts), Singapore and Japan (-12 pts), India and China (-10 pts).

“Positive economic news and growing consumer optimism in the past few months have definitely led consumers in these markets to believe that economic recovery will come sooner rather than later,” said Banks. According to the Nielsen survey conducted in March this year, 28 percent of Singaporeans said they expected their recession to end within 12 months – last month this number rose to 39 percent. UAE consumers also share this sentiment. In March, 32 percent of UAE consumers thought the recession would be over within a year but in June 43 percent said they expected the recession to be over before the middle of 2010.

Latest Nielsen data also shows that consumer confidence in the UK – a country that has suffered one of the most dramatic downturns in consumer confidence in the last year – is on the rebound, climbing 7 Index points in the second quarter. “UK consumers are getting the hang of consuming less. People with jobs – still the overwhelming majority – now have more disposable income as they reduce spending on big-ticket items like cars and holidays. With mortgage interest rates at their lowest levels, savings rates are increasing quickly and this has increased financial confidence,” said Banks.
“Consumers know that recovery won’t happen overnight but there has certainly been more good news than bad in the past few months,” noted Banks.

The decline in constant bad economic news in the media has directly impacted on the topics consumers are talking and blogging about. According to Nielsen Buzzmetrics, Nielsen’s service for measuring online conversations, the number of online discussions, or” buzz”, in the UK mentioning the word “recession” dropped around 60 percent between late March and late June this year. “People’s obsession with the recession has switched to how to live and spend more moderately in a new economic era,” said Banks.

Italian consumers have also become more optimistic, showing a strong gain of 7 Index points – their highest Nielsen Consumer Confidence Index since the second half of 2007. “Our survey supports recent Italian government figures which indicate that consumer confidence is returning to the Italian economy. In the last three months, Italian consumers’ concern for job security and the economy fell by 4 percentage points respectively, while average supermarket prices fell 0.2 percent in June 2009, indicating that consumers are less concerned about rising food bills than they were two years ago,” said Banks. The rise in consumer confidence in Italy has also been positively impacted by the government’s stimulus policies and the significant decline of negative economic coverage in the media. Online discussions mentioning the word “recession” have decreased by 35 percent this year according to Nielsen.

Globally, job security and the economy remained consumers’ top two concerns in life but even the level of these concerns has abated in the last three months and recorded declines of two and four index points respectively.

Most consumers said that they would continue to purchase non-prescription medications, although they may switch to cheaper products or use them less frequently. Americans, Germans and Scandinavians all indicated that they would be looking for less expensive products.

Overall, the survey highlights the importance of understanding local consumer needs, as regulatory, distribution and marketing framework vary greatly by country, and cultures have different approaches to what products they use and how they buy them.  Manufacturers that understand these nuances are better positioned to successfully ride out the recession and maintain some level of growth.

Read the full article about Nielsen’s landmark study of the global non-prescription medication market in the current edition of Consumer Insight.

The primary benefit of taking vitamins and supplements, according to more than 60 percent of those surveyed, was to boost the immune system, a response most common in Asia.  In the U.S., 62 percent of respondents said they took vitamins and supplements to ensure a balanced diet, a response only matched by Japan with 60 percent.

Regions where vitamin and supplement usage was lowest was Europe (30%) and Latin America (28%), with France and Spain bringing up the bottom with only 17 percent and 13 percent of consumers saying that they take vitamins and supplements. The primary reason for not taking vitamins was that their diets were already balanced and saw no need to take them. Interestingly, consumers in Poland, Russia and the Baltic states felt that “it is too difficult to understand which product to use,” suggesting an opportunity for marketers to refine their message in these markets.

By: Doug Anderson, EVP, Research & Development, Nielsen Consumer Panel Services

SUMMARY: Asians in the U.S. are often overlooked by marketers due to the tremendous growth of the Hispanic population. However, marketers will need to dig deep in order to reach this rapidly growing segment, who speak many different languages and have diverse cultural backgrounds as compared with the Hispanic consumer. While most Hispanics in the U.S. come from either Mexico or Latin America and share at least some parts of their culture, Asians do not. The strong cultural differences between persons from Japan, China, and India impact their tastes and how they approach their lives in the U.S.

Large scale immigration from Asia to the United States began with the gold rush of 1849, which spurred large numbers of Chinese immigrants and ended with The Chinese Exclusion Act of 1882. Most Chinese entered the country through the port of San Francisco, and because most came to be miners, the gender ratio of the Chinese population in the early U.S. was very male skewed, with over 20 men for every woman. Because the Exclusion Act stopped new immigration and because the vast majority of Chinese in the U.S. were men, Chinese society well into the 20th Century was essentially a bachelor society in which older men outnumbered younger ones.

A diverse group
Other Asian groups began to immigrate to the U.S. in the second half of the 20th Century, and today, persons of Asian origin or ethnicity make up 4.3% of total persons (3.7% of households are headed by a person of Asian origin or ethnicity). Unlike Hispanics in the U.S., the majority of whom are from Mexico or are of Mexican ancestry, Asians are more diverse geographically and hail from a long list of countries spanning nearly a third of the globe. Although the Chinese are still the largest subgroup, accounting for nearly one in four persons of Asian extraction, Asian Americans today are a very diverse population with no one language or dominant culture.

Affluent and educated
The most unique features of the Asian population in the U.S. are its levels of income and education. Asians have the highest incomes of any race/ethnic group, with over 45% of households earning incomes over $70,000. Less than 15% of Asian households have incomes less than $20,000, the lowest share of any group.

Levels of education for Asians are also quite high. Today, many Asian immigrants are young people coming to attend school. In fact, 35% of Asians who have been in the U.S. less than five years are enrolled in school, with the majority of those enrolled in either college or in a post-graduate program. Over two-thirds of Asian immigrants who have been in the country for more than 20 years have at least some college education, as do nearly 80% of those who speak English well. For comparison, only 39% of all non-Asian ancestry persons in the U.S. have at least some college. The larger Asian groups—Indians, Filipinos, and Japanese—have the highest levels of educational attainment, while Southeast Asians and Chinese have lower levels.

Higher levels of education position Asian immigrants and persons of Asian ancestry for better jobs than other race and ethnic groups, and of course, provide the higher income levels. Asians are very highly concentrated in computer and mathematical jobs, as well as those in the physical sciences—in engineering and finance—and in medicine.

Overall, the Asian population of the U.S. is younger than the non-Hispanic white population, though older than Hispanics. Because the fertility rates for Asian groups average nearly 25% lower than for Hispanics, only about 22% of Asians are under the age of 18, while children make up over a third of Hispanics. Asians are also less likely than the total population to be over the age of 65. Asian households are the most likely of any group to contain a married couple—over 60% (53% for white, 50% for Hispanic, and 29% for African American households). The level of divorce is also quite low among Asians relative to other race and ethnic groups.

Media savvy
Asian households are the most Internet-ready and High Definition (HD)-ready out of any ethnic group. According to Nielsen, as of May 2008, fully 85% of all Asian households have a PC with Internet access versus 73% of the Total U.S. Almost one-fourth (23%) of Asian households have at least one HD-capable/receivable television set.

Television usage, for Asian, African-American, and Hispanic households also vary greatly. In fact, Nielsen reports that in Asian households, Persons 18–49, view 42% less television on a total day basis as compared to Total U.S. (10.7 vs. 18.5). Conversely, Persons 18–49 in African American households view more television than Hispanic and Asian households during both Total Day and Prime dayparts. For Total Day, Persons 18–49 in African American households view 46% more television than Total U.S. (27.1 vs. 18.5). Hispanic Persons 18–49 view 9% less on a Total Day basis than Total U.S. (16.9 vs. 18.5).

Differences in the types of television programming Asians prefer reflect their intellectual tendencies as “Science Fiction” and “News” appear in the Top 10 for Persons 18–49 in Asian households, but neither program type appears in the Top 10 lists across white, Hispanic, African American or Total U.S. breaks.

Fresh and fit
Asians’ penchant for home-cooking meals and buying fresh ingredients is evident in their shopping baskets. Nielsen research shows that both canned and fresh fruit and meat products are popular items, indexing way above expected norms when compared with the average shopper.

And while it may be no surprise that Asians purchase significantly more “traditional” categories such as sake (dollar volume index of 843, where 100 is average), miscellaneous oriental foods (600), tea (408), oriental noodles (380) and rice (366) when compared with average shopping norms, Nielsen reports that categories such as female contraceptives index almost three times higher than average for Asians with an index of 282. By comparison, whites and Hispanics report an average index of 87 and 100, respectively, for the category, and African Americans index above average at 143. Good oral hygiene and skin care are also paramount—products such as toothbrushes, appliances and accessories, dental floss and skin cream all show higher than expected dollar volume activity.

Future growth
On a percentage basis, Asians are expected to grow almost as fast as Hispanics between now and 2050. The Pew Research Center projections show around 41 million Asians in the U.S. by 2050. Nearly all of this growth (94%) will come from immigrants who entered the country after 2005 and their U.S.-born descendants.

At this growth rate, Asians would account for over 9% of the Total U.S. population by 2050. Although this number is dwarfed by the expected incidence of Hispanics in 2050 (30%), it is essential to keep in mind that this is the expected average incidence across the entire country. Like many immigrant groups, Asians tend to be concentrated geographically—nearly 40% live in California, Oregon, and Washington states. The city of San Francisco is nearly one-third Asian today, and all of Santa Clara County (south of San Francisco and the heart of the Silicon Valley) is 30% Asian ancestry. If these areas continue to draw new Asian immigrants—and it seems quite reasonable to assume they will do so—then some cities on the West Coast of the U.S. will be majority Asian well before 2050, and many others will have Hispanic and Asians populations that combine to constitute the vast majority of residents.

In 1960, Asians made up only about 0.6% of the Total U.S. population, many concentrated in California. Growth has come almost entirely from immigration, but in the future we will start to see a higher share of growth coming from the children of immigrants and their children.

Asians and acculturation
Asian immigrants to the U.S. may not go through the same sort of acculturation process as Hispanics. Hispanics are much less likely to be enrolled in school, particularly post secondary school, and tend to take low-paid blue collar and service jobs, often either in Hispanic neighborhoods or in companies with a high share of Hispanic employees. Asians likely have, on average, better English skills when they enter the U.S., particularly writing skills, since they are often entering the country to attend college or graduate school. While in school they are exposed to a broader range of American culture than many Hispanics who come to the U.S. to work rather than attend school.

The differences for adults are the most striking. Less than 19% of Asian adults struggle with English compared to over 30% of Hispanic adults. Most children of both Asian and Hispanic immigrants are born in the U.S., and in general, have much better English language skills than their parents. The distributions of English language skills for children of Hispanic and Asian origin are nearly identical.

Marketing to Asians
Asians are expected to continue to grow rapidly as a share of U.S. population. Although they will likely continue to be ranked the third race or ethnic group by size (behind Hispanics and African Americans), they will make up a significant share of population over the next few decades. Like Hispanics, they will tend to be concentrated geographically, meaning that they already are a very significant share of the population in several major markets, and may come to dominate some larger cities. San Francisco and the surrounding areas could easily become majority Asian in the coming years.

Since Asians tend to have good English skills, language-specific marketing is less of a requirement for success as compared with Hispanics. However, Asian tastes are more different from U.S. norms than are those of Hispanics, which makes marketing to this segment more challenging. While most native U.S. shoppers dropped into a Hispanic grocery store would be at least familiar with most of the ingredients, the average American dropped into a Chinese, Korean, or Japanese market might not fare as well.

The fusion of Asian culture into the American mainstream will continue to gain importance and will increasingly gain focus from makers and sellers of consumer products, particularly in West Coast markets and those of the Northeast. New strategies that reflect Asian diversity and unique tastes will need to improve as this segment continues to grow in importance.

According to the Nielsen India Outbound Travel Monitor 2008, most international travelers from India are well-educated urbanites.  Countries in Asia — Singapore (24% of Indians), Dubai, Australia, and Malaysia (17% of Indians, respectively) — are the most popular destinations for India’s new travel elite. 

Overall, Asian destinations account for 72% of international leisure trips and 63% of business trips originating in India, Nielsen reported.  In comparison, travel to Europe accounts for just 18% of Indian travelers’ business trips and 14% of pleasure trips.

Of those Indians who travel internationally, 64% named sightseeing as the main purpose of their trip, while 47% reported they travel abroad to explore new countries.  Another 25% of those surveyed said they travel abroad to relieve stress, to have a good time, or to visit family and friends.

The Nielsen Indian Outbound Travel Monitor conducts face-to-face interviews with 2,000 men and women, ages 18 and older, who have traveled outside of India in the last twelve months.

View the full press release.

Learn more about Indian consumers in Nielsen’s “Consumer Insight” online newsletter.