Generation X is driving beauty sales

Step aside, Sephora kids.

While younger generations are buying beauty products in droves, data shows a different generation has more spending power: Generation X.

Generation X, often referred to as the “forgotten generation,” includes those born between 1965 and 1980, according to the Pew Research Center. Sandwiched between baby boomers and millennials, the often overlooked generation hasn’t captured the spotlight as much as its counterparts.

But experts say it could become one of the beauty industry’s most important generations in the next few years.

According to NielsenIQ data, Generation X will be the leader in consumer spending on a global scale by 2033, with spending power exceeding $20 trillion. This generation accounts for approximately 25% of the total beauty spend on both beauty products and beauty services.

More importantly, NielsenIQ said the Gen X beauty market will grow to 1.3 times its current size over the next five years.

According to the company, this growth is due to a combination of factors: The generation is financially stable and well-established, gravitating toward anti-aging and longevity trends, and placing emphasis on brand loyalty.

According to Chicago-based market research firm Circana, households with members of Generation X accounted for 44% of the total money spent on beauty last year; skin care was in the top category.

“This dovetails with the way beauty companies are focusing on solutions that focus on skin health, anti-aging and long-term results, all of which resonate strongly with Gen X consumers,” said Larissa Jensen, beauty industry consultant at Circana.

The group will also see an increase in spending on hair care and makeup, Jensen added.

It’s a trend complemented by a broader focus on wellness and anti-aging.

“We no longer ignore aging people in the beauty industry as much as we used to,” said Anna Mayo, beauty thought leader at NielsenIQ. “For the first time we’re seeing brands launch and they’re talking about menopause. … I think that really helps engage people. They feel like they’re not buying something that’s made for a college student.”

Generation X is also in the “prime spending phase” of their lives; NielsenIQ estimates the group will spend $15.2 trillion annually between 2021 and 2033, with that figure expected to rise to $23 trillion by 2035.

Although the generation spends its money trying different brands and products, Mayo noted that its members have high brand loyalty and once they become loyal to a product, they are more likely to stick with it and continue investing.

“Part of it is that the industry has been really good at developing brands for much more niche audiences,” he said. “We are less so in this age of mass-market brands.”

This is a growth that companies also take into account. At the beginning of April, Ulta CEO Kecia Steelman told Yahoo Finance that serving older generations is part of the company’s business strategy.

Even personal care company Bluemercury started a campaign Last year we celebrate women over 40. The company has identified Gen X as one of its biggest opportunities, given their spending power and focus on luxury beauty.

According to AlixPartners consultant Lindy Firstenberg, the winners of Generation X’s spending spree will be determined.

“Ulta is going to win because they’ve doubled down on wellness and are big on menopause brands,” Firstenberg said.

While Sephora is advertising externally to younger groups, even Firstenberg has said it’s emerging as a kind of Gen-X “hotspot” with Bluemercury. The important thing, he said, is to invest in curation and one-on-one conversations with customers.

Members of Generation X, who grew up with salespeople working at counters in department stores, are investing in the experience as well as the product. Firstenberg said the importance of knowledgeable salespeople to Generation X is 23% higher than to Generation Z.

Firstenberg added that brands that focus on meeting Generation X where they are, rather than chasing younger generations, will secure their spending power.

“This is what Generation X wants: They want the best products, they want to be trained, they want high talent, and they want that service,” he said.

Kirti Tewani, a member of Gen

This generation was largely an “untapped” market when it started seeing increased interest about two years ago.

“Generation “So we take care of ourselves inside and out.”

Tewani said she sees Gen Xers focusing specifically on products that have long-term effects and target areas like hyperpigmentation, dry skin and large pores. He added that they also pair these products with a healthy lifestyle by focusing on diet, exercise and sleep.

According to Tewani, this generation is also looking for clean materials; This coincides with a larger shift towards simpler formulas in the beauty industry.

“I think brands definitely knew this was coming,” Tewani said. “More brands are now jumping on the bandwagon because they understand where their spending market is, and Generation X is definitely filling that gap.”

Gen Xers’ age also means their spending on beauty has gone beyond the superficial level.

According to AlixPartners’ Firstenberg, people this age will likely be in what’s been called the “sandwich generation”; This means they buy beauty products for both their parents and children, contributing to a large share of spending.

It’s also not a generation that focuses on innovation or flashy marketing and instead wants products that deliver proven results.

He added that Generation X’s spending power is almost 25% above the national average.

“We see that not only do they have this power, but they give it away,” he said. “They will continue this highest spending in a generation for at least the next eight years.”