Gay Buying Power Estimated at $485 Billion in 2003; Witeck-Combs Communications, MarketResearch.com Update 2003 Analysis 9/2/2003
From: Bob Witeck of Witeck-Combs Communications, 202-887-0500 ext. 19, 703-986-7866 (cell), or bwiteck@witeckcombs.com; Matt Seward of MarketResearch.com, 301-468-3650 ext. 205 or mseward@marketresearch.com WASHINGTON, Sept. 2 -- The total buying power of the U.S. gay, lesbian and bisexual (GLB) adult population in 2003 is estimated at $485 billion, according to updated analysis by Witeck-Combs Communications and MarketResearch.com. The latest projection was originally derived in a joint study by both organizations entitled, "The Gay and Lesbian Market: New Trends, New Opportunities," 2002. Last year, Witeck-Combs and MarketResearch.com gauged GLB annual buying power at $451 billion - - a benchmark cited frequently by business analysts. In releasing the current analysis, Bob Witeck, CEO of Witeck-Combs Communications said, "Validating buying power helps measure the economic contributions of the gay, lesbian and bisexual population. Buying power, however, does not equal affluence nor does it imply that same-sex households are wealthier than others. In fact, there is evidence suggesting gay males may earn slightly less than their heterosexual counterparts." Based on several population samples, the analysis conservatively benchmarked 6 percent to 7 percent of the adult U.S. population as gay, lesbian or bisexual -- or between 14 to 16 million individuals over the age of 18. The estimate assumes that average income patterns within the GLB population generally reflect those of the population as a whole over the age of 18, that the population may be adjusted to take into account a higher proportion of males, and based on same-sex household Census data, that gays and lesbians appear more likely to live in metropolitan areas than the population as a whole. Given the growing visibility of the gay consumer dollar, Witeck noted that corporate America is paying attention as shown by the popularity of new television trends such as Bravo's "Queer Eye for the Straight Guy," and innovative marketing campaigns by many Fortune 500 companies to target same-sex households. "As consultants, we work to understand buying patterns, attitudes and preferences of gay consumers," he added. "Buying power is just one part of this story. By digging deeper, we've also learned that one in five same-sex households have children under the age of 18, and usually have needs similar to other families, while single gay men tend to be early adopters and often enjoy upscale products. Smart marketers look for these distinctions and develop strategies to target this sizable market segment." "Buying power is one measure of the growth and size of the GLB consumer market," said Don Montuori with MarketResearch.com. "In our report, we cite buying power as another term for 'disposable personal income,' which is the total after-tax income available to an individual to spend on personal consumption, personal interest payments or savings. Traditionally, it equals roughly 86 percent of income." The following table contrasts current population data and buying power projections for four niche populations in 2003. The data for African-American, Hispanic and Asian-American populations are based on U.S. Census data as well as analysis released recently by the University of Georgia's Selig Center. The data for population estimate and buying power used for the nation's GLB adult population is based on the analysis by Witeck-Combs Communications and MarketResearch.com. The same definitions for "disposable personal income" and "buying power" are used for all categories. Buying Power 2003 Population Estimate Buying Power Gay, Lesbian, Bisexual...15 Million....................$485 Billion African-American.........36 Million....................$688 Billion Hispanic.................41 Million....................$653 Billion Asian-American...........12 Million....................$344 Billion Sources: Selig Center (African-American, Hispanic and Asian-American Buying Power), U.S. Census estimates, and Witeck-Combs Communications and MarketResearch.com (GLB Buying Power), 2003. Note: For calculation purposes, we relied on an average to conservatively estimate the 2003 GLB adult population. About Witeck-Combs Communications, Inc. Witeck-Combs Communications, Inc. ( http://www.witeckcombs.com ) is the nation's premier strategic marketing communications firm, specializing in reaching the gay and lesbian consumer market with corporate clients including American Airlines, IBM, Sears, Ford Motor Company and its brands Jaguar, Volvo and Land Rover. With a decade's experience in this unique market, Witeck-Combs Communications has earned respected relationships throughout the community and serves as a bridge between corporate America and gay and lesbian consumers. In April 2003, American Demographics magazine identified Bob Witeck and Wes Combs as two of 25 experts over the last 25 years who have made significant contributions to the fields of demographics, market research, media and trendspotting for their pathbreaking work on the gay and lesbian market. About MarketResearch.com(r) MarketResearch.com is the leading provider of global market intelligence products and services. With over 50,000 research publications from more than 350 top consulting and advisory firms, MarketResearch.com offers instant online access to the world's most extensive database of expert insights on global industries, companies, products, and trends. For more information, call Matt Seward at 301.468.3650 ext. 205 or visit http://www.MarketResearch.com. |