If we’re looking at the economy through a single consumer lens, we’re already behind.
There isn’t one economic story in the U.S. right now. Multiple, diverging experiences are unfolding at the same time. Many diverse consumers are experiencing this moment differently than the general population. For retailers and manufacturers, that can mean blind spots and missed opportunities.
According to the PDG Insights’ Diverse Consumer Pulse study, fielded in March, consumers appear relatively stable. About one-third say they’re financially comfortable and saving regularly. However, more than 40 percent say they’re “getting by” but being cautious – which doesn’t suggest a strong foundation for discretionary spending growth.
Black and Latino shoppers are more likely to report financial strain or hardship. Even when the topline gap doesn’t look dramatic, it signals something critical – these households tend to operate with less margin for error. When prices rise or an unexpected expense occurs, the impact lands faster and harder.
Black and Latino consumers are more likely to expect their financial situation to improve in the months ahead, while White and non-Latino shoppers are more likely to expect things to stay the same.
It’s a divide not just in financial reality but mindset. And mindset shapes trade-offs, brand choice and willingness to try something new.
That optimism matters, but it isn’t infinite. Among Latino consumers, economic optimism fell six points this quarter (59 percent in December to 53 percent in March), while Black and non-Latino shopper optimism remained flat.
Inflation shared but stress isn’t
Inflation is one area where nearly everyone agrees that something has changed.
Most consumers report rising prices. In March, more than 70 percent of the general population and Blacks said prices had risen in the last three months.
Latino shoppers were slightly lower, at 61 percent, but also more likely to say they didn’t know about price increases, suggesting uncertainty or caution about calling it either way.
Two-thirds of Latino and Black consumers are significantly more likely to describe inflation as very or moderately stressful, compared to 59 percent of the general population.
Concern about what comes next also is higher: 76 percent of Latino consumers worry about future price increases versus 68 percent of the general population and 69 percent of Blacks. Paired with higher optimism, this creates a telling tension – many shoppers now feel squeezed yet still hope for better days ahead.
Food security – where divide becomes undeniable
If we want to understand the real divide in household well-being, look at food security.
In March, 64 percent of Latino and 62 percent of Black shoppers said they worry about running out of food at least sometimes, versus 46 percent of the general population.
That gap impacts how often households shop, how they define value and which brands earn trust and repeat purchase.
Across all shoppers, top concerns cluster around fundamentals: inflation, cost of living and healthcare. The emphasis differs in ways that matter for growth strategy.
Black consumers place more emphasis on employment and job stability, while Latinos show greater concern about future economic shifts. These perspectives reflect both immediate pressure and long-term aspirations tied to economic mobility.
The biggest mistake brands can make is treating this as one unified consumer moment; this is a multi-speed economy.
Some households are stable and holding steady, while others are managing through pressure but still pushing forward. The latter group is increasingly Latino and Black consumers.
What this means for retailers:
- Merchandise to two realities, within the same aisle. Pair sharp price/value options with “worth it” items that deliver quality, convenience and cultural relevance.
- Make value easier to use, not just easier to find. Simplify deal navigation (clear shelf messaging, app-to-aisle continuity) and keep core value items consistently in stock.
- Lean into food-security behaviors. Expect more trip fragmentation, smaller baskets and “stretch” missions; support them with flexible pack sizes, meal solutions and relevant private-brand choices.
- Localize for Latino and Black shoppers beyond translation. Assortment, adjacencies and seasonal sets should reflect community preferences and occasions. That’s where momentum and loyalty are building.
What this means for manufacturers:
- Build a value ladder, not a single price point. Offer clear good/better/best options (pack sizes, formats, and price tiers) so shoppers can stay with the brand as budgets flex.
- Design for “stretch” without sacrificing quality cues. When households worry about running out of food, they prioritize products that feel dependable. Performance, taste and familiar cultural signals matter.
- Stop treating diverse consumers as a niche growth plan. Latino and Black households are where pressure and optimism coexist. That means they are sensitive to trade-offs and open to solutions that help them progress.
- Pressure-test innovation against real constraints. If the benefit doesn’t show up quickly on the shelf and in use, squeezed shoppers will default to what’s familiar, even if they’re optimistic about the future.
Bottom line: The retailers and manufacturers that win next will be those that plan for both constraint and momentum, and who treat Latino and Black shoppers as central to growth, not adjacent to it.
Diana Leza Sheehan is founder of PDG Insights, a consumer research and retail strategy consultancy specializing in diverse consumer intelligence. The full wave-over-wave trend analysis from the 2026 U.S. Diverse Consumer Pulse study is available at pdginsights.com.