D. Petruzzi
Research expert covering Cosmetics, Personal Care, Health & Hygiene industries.
Gen Z & the beauty market in the United States - statistics & facts
The impact of Generation Z on the beauty industry is unmatched: tech-savvy, aware of current issues, and vocal about their needs and beliefs, these young people have become the newest trend setters and target audience of several markets, including that of beauty.
As such, cosmetics and personal care companies have started focusing more on this generation of consumers in recent years, meeting their demands, and working towards new brand values that are dear to them. In fact, many Gen Z, or “zoomers”, value sustainability, workers’ rights, and the use of ethical ingredients, also when it comes to their daily beauty and personal care routines.
In the biggest market for the cosmetics industry, the United States, where revenues of about 19.4 billion U.S. dollars were recorded in 2023, this generation is helping shape the market.
Recently, the trend of “de-influencing” has become popular on TikTok: the goal is to remind the viewers that they do not need as many products or very expensive ones and thus save money. The relationship between beauty products and Gen Z is very strong, especially since it is tightly linked to the concept of self-care, which zoomers really appreciate. However, shifts in their spending behavior could be just around the corner.
Gen Z has an enormous impact on the beauty industry and seemingly cannot do without beauty items and skincare routines. However, due to the current economic climate especially, typical expenditures could change over time. This leads one to wonder what consequences this will have on the types of products and values brands will prioritize to meet the needs of such a valuable target audience.
Skincare first
Over the past few years, skincare has taken over the internet, with beauty influencers and make-up artists sharing their secrets, tips, and reviewing the newest products on the market. This comes as no surprise, since skincare is the most profitable category of the beauty market and, in the United States, it generated notable revenues as of 2023, with face care being the most popular segment. Having a skincare routine has become synonymous with self-care, a priority for Gen Z. Whether it is a treat to oneself or to prevent aging or defy acne, skincare products are among the most purchased by U.S. consumers and the ones trending the most on social media such as TikTok, which younger generations often use to find inspiration or gain more knowledge. Among Gen Z’s favorite skincare brands are big names, such as CeraVe and The Ordinary.Purchasing behavior
Gen Z is the newest entry in the job market, and despite the young age, its average annual household expenditure was estimated at almost 48 thousand U.S. dollars in 2022. According to a survey carried out in the United States in 2023, the average yearly spend on beauty products added up to over two thousand U.S. dollars for Gen Z, second only to millennials. Cosmetics are important to zoomers, to the point where about 50 percent of them stated that they were willing to cut back on other expenses in order to allocate more money for beauty items in 2023. However, when shopping for such products, Gen Z still highly values price. It was in fact the most important attribute of a product, followed by quality. As more and more products and trends become viral online, beauty shoppers sometimes lean into overconsumption, subsequently spending high amounts of money. Gen Z is, in fact, also the generation that stated they regretted overspending on beauty products the most in 2023.Recently, the trend of “de-influencing” has become popular on TikTok: the goal is to remind the viewers that they do not need as many products or very expensive ones and thus save money. The relationship between beauty products and Gen Z is very strong, especially since it is tightly linked to the concept of self-care, which zoomers really appreciate. However, shifts in their spending behavior could be just around the corner.
Gen Z has an enormous impact on the beauty industry and seemingly cannot do without beauty items and skincare routines. However, due to the current economic climate especially, typical expenditures could change over time. This leads one to wonder what consequences this will have on the types of products and values brands will prioritize to meet the needs of such a valuable target audience.
