Asian Americans’ fast-growing population and spending power in the United States make them a valuable customer base. According to the Pew Research Center, the Asian population grew 81% from 2000 to 2019, whereas the general population grew 16%. Asian Americans have the highest median household income, but the most intragroup economic disparities.
Currently, Asians only make up roughly 7% of the total population in the United States, but they make up 11.9% of Costco customers, according to a market study conducted by Numerator. Costco reported $195.93 billion in revenue in 2021, up 17% from the previous year.
The retail giant’s popularity among Asian Americans bodes well for the warehouse retailer’s long-term growth and has ramifications for other businesses as the U.S. diversifies. Costco is known for not using advertising, yet word-of-mouth helps gain customer loyalty.
The consumer and market data analytic company NielsenIQ estimates Asian Americans’ sales potential is at $13 billion. The firm also observed that Asian Americans purchase differently than other customers. Asian households are larger than the U.S. average, shop in quantity, and often seek deals. Asians are twice as likely as Americans to shop at warehouse clubs.
Asian Americans may get diaspora food at ethnic grocers and Asian grocery companies including H Mart, 99 Ranch Market, and Patel Brothers. Rarely do these goods appear at a major shop.