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The Growth and Impact of the American Muslim Consumer Market

12 Oct 2023

A seismic shift is happening in the world of consumer marketing. The rapid growth of the Muslim population in America is spurring interest from major brands across industries seeking to appeal to this lucrative demographic. Here’s an in-depth look at the size, influence, and economic contributions of this powerful consumer community.

A Massive and Growing Market

The American Muslim consumer market represents a sizable and rapidly expanding segment. According to research by DinarStandard, this group’s spending power reached $120 billion in 2020, up from $110 billion in 2018. Projections forecast this market ballooning to over $250 billion by 2030. What’s driving this robust growth?

The American Muslim population currently stands at approximately 3.45 million and is increasing at over 6% annually, outpacing national population growth.

American Muslim households skew younger, more educated, and wealthier compared to the general public. The community also continues to grow through steady immigration.

On a global scale, the American Muslim consumer market constitutes the 9th largest segment amongst Organisation of Islamic Cooperation member countries. The $120 billion in estimated spending rivals the entire consumer markets of countries like Russia and Indonesia.

An Engine of Economic Growth

image showing economic growth

In addition to wielding major purchasing power, American Muslims make significant economic contributions through entrepreneurship. There are estimated to be over 200,000 Muslim-owned small businesses operating in diverse sectors like healthcare, manufacturing, retail and tech. These companies create hundreds of thousands of American jobs

Prominent brands founded by American Muslims include Pampers, Staples, and Quantas among numerous others. Muslim startups are also proliferating, especially in the fields of financial technology, apps and software services.

As this community grows, so will its economic muscle. The American Muslim population is projected to exceed 8 million by 2050. This makes the Muslim consumer and business market an unstoppable force that all companies must embrace if they desire to thrive.

Big Brands Take Notice

Given the impressive spending and entrepreneurial power held by this demographic, major consumer brands are sitting up and taking notice. Companies across industries are waking up to the profit potential of Muslim consumers in America. This is spurring new product development, targeted marketing initiatives, and customer experience upgrades.

Food and beverage giants are pursuing halal certification of manufacturing facilities and products to meet religious guidelines around permissible ingredients and preparation methods. Nestle, Cabot Cheese, Cargill and more have obtained halal certification from organizations like IFANCA. Restaurant chains including KFC, Pizza Hut, and Subway have rolled out halal menu options.

Fashion and beauty brands like Nike, Dolce & Gabbana, MAC Cosmetics and H&M are launching clothing lines, shoe collections, cosmetics and skincare specially tailored to Muslim consumers. E-commerce sites like The Modist and Haute Hijab cater specifically to modest fashion needs.

Leading retailers frequently time promotions before major Islamic holidays like Eid al-Fitr and Eid al-Adha. Marketers advertise holiday gift guides, decor inspiration, halal cosmetics and modest fashion tailored to these events. Big box stores are also training staff on Muslim holiday etiquette.

Meanwhile, banks and financial firms like Devon Bank, Guidance Residential, Azzad Asset Management and Wahed Invest actively provide Islamic-compliant services. This includes interest-free lending and avoiding transactions in prohibited industries under Sharia principles.

The Way Forward

As the American Muslim community increases toward a projected 8 million by 2050, corporations will only further wake up to the importance of understanding and catering to this consumer base. However, those who engage sincerely will be rewarded with loyal, lifelong customers.

The message for companies is clear – ignore this market at your own risk. To succeed in America’s evolving cultural and commercial landscape, brands must acknowledge Islamic values and make Muslim consumers feel recognized and respected.

The question is no longer whether to pursue this market, but how. Companies able to embrace Muslim youth and tap into their pioneering entrepreneurial spirit will have the edge. Moving forward, this thriving community promises lucrative opportunities for brands able to authentically serve its interests and values.

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