Purchasing Power of Working-Age Adults With Disabilities
- The total after-tax disposable income for working-age people with disabilities is about $490 billion, which is similar to that of other significant market segments, such as African Americans ($501 billion) and Hispanics ($582 billion).
- Discretionary income for working-age people with disabilities is about $21 billion, which is greater than that of the African-American and Hispanic market segments combined.
- Disposable and discretionary income varies by disability type and by state—information that can help business leaders as they make plans to access the disability market.
- People with disabilities are not a solitary market; they are surrounded by family members and friends who also recognize the value in products and services that accommodate all people in society.
- People with disabilities offer diverse skill sets and unique insights that can help shape design and development for industry, resulting in products and services that appeal to a broader market share.
- Employment for people with disabilities not only builds a more diverse workforce but also leads to greater purchasing power for this population.
- One study found that 92% of consumers have a more favorable perception of companies that hire people with disabilities and more than 33% of respondents prefer to give their business to companies that employ people with disabilities (Siperstein, Romano, Mohler, & Parker, 2006).
- The U.S. Office of Disability Employment Policy (ODEP) noted that people with disabilities are “the third largest market segment in the United States” (ODEP, 2012). That market size more than doubles when considering family members, caregivers, and others who prioritize goods and services that are inclusive of people with disabilities.
- Greater attention to people with disabilities as a diverse market segment will encourage the customization of products, services, and advertisements. Building on an already significant market while increasing brand recognition and loyalty is a win-win proposition for businesses and this important and growing market.
- many different types of disabilities, among these cognitive difficulties (because of a physical, mental, or emotional problem; having difficulty remembering, concentrating, or making decisions); ambulatory difficulties (having serious difficulty walking or climbing stairs); vision difficulties (blind or having serious difficulty seeing, even when wearing glasses); hearing difficulties (deaf or having serious difficulty hearing); and self-care difficulties (having difficulty bathing or dressing).
- Businesses and industries would do well to understand these disability types and unique consumer needs to better design, develop, and market products and services for people with disabilities.
- To understand the purchasing power of the market segment of consumers with disabilities as a whole, we need to know how much money they have available after taxes and after their basic day-to-day needs are met.
- Disposable income varies by disability type. People with independent living difficulties have the highest level of income, a total of about $25 billion more than the second level of income (persons with ambulatory difficulties). People with self-care difficulty have the lowest purchasing power at $4 billion in disposable income.
- Discretionary income varies by disability type. Individuals with hearing difficulties represent the disability category with the greatest amount of discretionary income, with 1.59% having discretionary income averaging $25,737 per individual and totaling about $9 billion. This is nearly $6 billion more than the total of individuals with vision and ambulatory difficulties.
- Although people with independent living difficulties have a higher level of disposable income, they have a much lower amount of discretionary income. People with self-care difficulty have the lowest purchasing power of less than $1 billion in discretionary income.
Implications for Business
- Although people with disabilities earn less than people without disabilities and represent a smaller share of the market, businesses should pay attention to this group for three reasons:
- Most businesses are not taking advantage of the nearly half a trillion dollars in market value of this population. Given that people with disabilities are part of families and communities, the number of people who could purchase goods and services for this population more than doubles.
- Societal shifts point toward growing numbers and greater inclusion of people with disabilities. Businesses that want to increase sales and positive brand recognition will invest in goods and services for this growing market. The return on investment is clear.
- The findings outlined in this report are conservative estimates of the purchasing power of people with disabilities. The market potential is even larger when one considers the friends, family members, caregivers, colleagues, and others who are connected to consumers with disabilities.
- To maximize revenue opportunities, the private sector can reassess its business strategy in terms of not only where people with discretionary income live but also whether products and services are developed specifically for these consumers
- Increasing market share can be accomplished by developing products that meet the needs of people with disabilities, marketing products to people with disabilities, and employing people with disabilities.
- Diversity in the workplace has shifted from a human resources consideration to an intentional business strategy, while corporations strengthen their intellectual capital by expanding and diversifying their human capital.
- people with disabilities provide a perspective on consumers with disabilities that helps businesses refine their products and services while broadening their reach.
- Considering the usability needs of people with disabilities during the design process can result in more desirable and competitive products for the masses.
- Applying universal design principles at the start of any new product or service development saves the costs of retrofitting later in the process and ensures that people with disabilities are potential customers.
- providing accessible goods and services can enhance their bottom line through inclusive product design.
- A Nielsen study (2016) found that households with people with disabilities made more shopping trips and spent more money per trip on average than households without a person with disabilities. The same study indicated that people with disabilities tend to be more brand loyal.
- 66% of consumers will purchase goods and services from a business that features individuals with disabilities in their advertising, while 78% will purchase goods and services from a business that takes steps to ensure easy access for individuals with disabilities at their physical locations.
- The challenges that exist for consumers with disabilities have become opportunities for businesses to serve them.
