The Future of Marketing in a Multicultural America

By Kristina Simon – Florida State University

The United States is continually growing into one of the most diverse nations in the world. By 2050, the White population is projected to decline to 46%, while Hispanic and Asian populations are expected to rise significantly (Kipnis et al., 2019) . These demographic shifts are fundamentally reshaping society and the marketplace. This challenges marketers to adapt their strategies. In a multicultural society, marketing must no longer just be about selling products; although from a revenue perspective, corporations will have to incorporate inclusivity and diversity to keep up with the dramatic demographic transition (Mueller, 2008). It is important to recognize and embrace the unique identities and needs of diverse populations. Brands or companies that fail to engage with diversity risk the potential of alienating segments of their target audiences and becoming obsolete. A multicultural society is transforming marketing practices in the United States by reshaping consumer identity through diverse demographics, emphasizing the role of cultural values in consumer behavior, and the need for inclusive marketing strategies. These shifts will require marketers to develop a deeper understanding of their audiences.

The demographic expansion occurring in the United States demands attention in how marketers understand and segment their audiences. The increasing diversity of the population, specifically younger generations, is reshaping consumer identities. Hispanic and Asian populations are growing significantly, which contributes to a society where multiculturalism is the norm rather than the exception (Kipnis et al., 2019) . According to the University of Georgia’s 2021 Multicultural Economy report, “Asian Americans, African Americans and Hispanics wield formidable economic clout. And companies can no longer take a one-size-fits-all approach to marketing consumer goods and services” (Melancon, 2021). Some key figures from this report highlight that in 2020, Hispanic spending power grew to $1.9 trillion, Asian American buying power grew to $1.3 trillion, and African American buying power grew to $1.6 trillion (Melancon, 2021). Some consumers now identify with multiple cultural affiliations, which may blend elements of their heritage with aspects of American culture (Kipnis et al., 2019). For marketers this means that traditional strategies based solely on broad demographic categories are no longer enough. Brands must instead adopt a more complex approach that recognizes differing consumer identities. For instance, campaigns that rely on ethnic stereotypes or assume homogeneity within a group may fail to resonate with today’s multicultural audiences.

Cultural values play a crucial role in shaping consumer preferences and behaviors. As the U.S. becomes more diverse, marketers must understand how cultural values influence decision-making and brand perceptions. Research by de Mooij and Beniflah (2017) shows that while some cultural values intersect with mainstream norms over time, others remain distinct, specifically among immigrant communities and minority groups . These values influence everything from product preferences to advertising appeal. Luxury goods, for example, may hold stronger appeal in cultures that emphasize social status, while other groups might prioritize functionality in their purchasing decisions (de Mooij & Beniflah, 2017) . Marketers can use these insights to create campaigns that follow the values of specific cultural groups. Authenticity is key. Campaigns that do not reflect the lived experiences and values of their target audiences could come across as insincere. Cultural values should be incorporated into every aspect of a campaign, including messaging, imagery, product development, and customer service.

The multicultural nature of U.S. society demands a shift in marketing practices. Marketers must embrace inclusivity to create campaigns that resonate with diverse audiences. Multicultural marketplaces are active environments where consumers from different cultural backgrounds interact with global and local brands, presenting both challenges and opportunities (Demangeot et al., 2015). One major challenge in multicultural marketing is avoiding stereotypes and tokenism. Licsandru and Cui (2019) suggest that millennials are highly critical of marketing campaigns that rely on outdated representations of ethnicity. Instead, they value authenticity and inclusivity, and favor brands that genuinely celebrate diversity rather than exploit it for commercial gain . Veresiu and Giesler (2018) argue that multiculturalism in marketing often commodifies ethnic identities, reducing them to market categories while obscuring systemic inequalities . To create meaningful and impactful campaigns, marketers must move beyond commodification and engage with multicultural audiences in ways that promote inclusivity and equality.

In conclusion, marketing practices must evolve to reflect the diversity of its population. While all consumers are core to a business, multicultural consumers also mean big money, as they are represented as who has and spends dollars (Morse, 2009). Demographic shifts and the complexity of consumer identities challenge traditional strategies. Brands that embrace inclusivity and develop cultural competence will be better positioned to succeed in this new marketplace. The future of marketing lies in its ability to adapt to the realities of a multicultural society. It demands a genuine commitment to understanding and celebrating diversity.

References 

• De Mooij, M., & Beniflah, J. (2017). Measuring cross-cultural differences of ethnic groups within nations: Convergence or divergence of cultural values? The case of the United States. Journal of International Consumer Marketing, 29(1), 2-10. Demangeot, C., Broderick, A. J., & Craig, C. S. (2015). Multicultural marketplaces: New territory for international marketing and consumer research. International Marketing Review, 32(2), 118-140.
• Kipnis, E., Demangeot, C., Pullig, C., & Broderick, A. J. (2019). Consumer multicultural identity affiliation: Reassessing identity segmentation in multicultural markets. Journal of Business Research, 98, 126-141. Licsandru, T. C., & Cui, C. C. (2019). Ethnic marketing to the global millennial consumers: Challenges and opportunities. Journal of Business Research, 103, 261-274.
• Melancon, J. M. (2021, August 11). Thirty years of change: Consumer buying power is more diverse than ever. UGA Today. https://news.uga.edu/selig-multicultural-economy-report-2021/ Morse, D. R. (2009). Multicultural intelligence: Eight make-or-break rules for marketing to race, ethnicity, and sexual orientation. Paramount Market Publishing. Mueller, B. (2008). Communicating with the multicultural consumer: Theoretical and practical perspectives. Peter Lang. Veresiu, E., & Giesler, M. (2018). Beyond acculturation: Multiculturalism and the institutional shaping of an ethnic consumer subject. Journal of Consumer Research, 45(3), 553-570.