
Gen Alpha’s Obsession with Skincare, Gen Z’s Fragrance Vibes, and “Masstige” Top CEW’s 2024 State of Beauty Report
Despite global economic challenges, the beauty and personal care market continues to thrive in the United States, where there’s a strong focus on organic and natural products. Worldwide, it is projected to generate a revenue of $646 billion in 2024, $100 billion in US sales.
As Gen Alpha enters their teen years, the cohort is already proving to be a driving force in the skin care category. To better engage with this young demographic, brands are exploring innovations like AI-driven personalization and social commerce. Programs such as Meta’s Advantage+, TikTok’s AI avatar and Snapchat’s recently launched AI Chatbot serve as effective means toward consumer acquisition and personalization, so it is no surprise that the AI Revolution is here.
From AI to social commerce, early adoption is key. With social commerce forecasted to rake in $70 billion in the U.S. this year alone, TikTok Shop is already a juggernaut in the space, with brands like The Beachwaver selling more than 300,00 units and K18 Haircare seeing a 409% YOY growth on the platform. Earned media value (EMV) over impressions is a key metric driver with notable brands such as Mielle Organics, Creed, Dr. Dennis Gross and E.l.f.’s Naturium, all experiencing EMV growth with TikTok. In fact, TikTok Shop claimed its spot as the 12th-largest e-commerce destination for beauty and personal care in 2023; Amazon maintained its position as number-one.
Just how much power will Gen Alpha play in this category? The number of Gen Alphas worldwide will reach over 2 billion this year, making them the largest generation in the history of the world, according to insights agency McCrindle. By the end of 2029, more than $5.46 trillion will be spent on the cohort, outpacing Millennials’ $2.5 trillion as of March 2023 and Gen Z’s projected $3 trillion purchasing power by 2030.
Meanwhile, Mintel forecasts “sophisticated simplicity” as a key beauty trend for 2024, referring to younger consumers’ focus on both quality and efficacy. The mind-body beauty connection will also continue to increase in prominence as mental health remains a key focus for younger consumers, specifically with functional ingredients like adaptogens being included in topical products.
“Brands have an opportunity to lean into the mind-body connection that beauty products can evoke, emphasizing attributes that make us feel good on the inside, too,” noted Cindy Riccio, Executive Vice President at 360PR+.
Fragrance, also emerged as the fastest-growing subcategory in beauty by search interest, increasing by more than 35 percent in 2023. According to Google’s head of sales strategy and insights, Sam Mintz, Gen Z’s push towards personalization and customization are largely driving the growth of fragrance: “Gen Z, specifically, is associating fragrance with their energy and vibe; they have different fragrances for different moods, energies and emotions — we expect to continue to see that in 2024.”
Beauty is also expected to be driven by premiumization, with the premium beauty category projected to grow at an annual rate of 8 percent (compared with 5 percent in mass beauty) between 2022 and 2027, as consumers trade up and increase their spending, especially in fragrance and makeup, according to McKinsey. However, Gen Z consumers are still balancing price and scrutinizing ingredient lists before their final purchase. Nearly half of Gen Z respondents in a McKinsey survey report conducting extensive research on product ingredients and their benefits before purchase, similar to millennials (compared with only one-third of Gen Xers and one-fifth of baby boomers).
To learn more, email Cindy Riccio or connect with her on LinkedIn. Riccio founded CRC, a 360PR+ agency specializing in luxury, fashion and beauty brands, after serving in senior communications and marketing roles at L’Oreal and HanesBrands.