Generation X: The New Powerhouse of Beauty Industry Spending
Step aside, Gen Z. Generation X has now taken the spotlight as the most valuable customer segment in the beauty industry. Their spending power is predicted to exceed a staggering $20 trillion globally by 2033, as per the latest data from NielsenIQ and Circana.
Often overlooked, Gen X (those born between 1965-1980) is responsible for a significant 44 percent of the total beauty expenditure in the past year. Skincare tops their list of beauty essentials. The Gen X beauty market is expected to expand 1.3 times its current size within the next five years, contributing an additional $150 billion in spending.
Anna Mayo, a beauty thought leader at NielsenIQ, emphasizes, “We’re not ignoring people as they get older in the beauty industry as much anymore.” This shift is propelled by Gen X’s financial stability, brand loyalty, and their focus on anti-aging and longevity trends. With their spending power nearly 25 percent above the national average, this generation is more interested in products that deliver proven results over flashy marketing.
Retailers are swiftly adapting to this change. Ulta Beauty is gaining traction with its emphasis on wellness and menopause brands. Simultaneously, Sephora and Bluemercury are investing in personalized consultations. Industry experts highlight that Gen X values knowledgeable sales associates 23 percent more than Gen Z, mirroring their preference for the traditional department store counter experience they grew up with.
As part of the “sandwich generation,” Gen X not only purchases beauty products for themselves but also for their aging parents and children, further amplifying their market impact.
Source: CNBC