NielsenIQ (NIQ), in collaboration with World Data Lab and SPATE, has released a comprehensive generational report on the cosmetics market, offering crucial insights into how consumer preferences, spending habits, and values will evolve over the next decade. The report outlines the impact of generational shifts on the global beauty industry and highlights trends that will drive growth and shape the market.
The global cosmetics industry is projected to experience tremendous growth, reaching a value of $1.1 trillion, with $700 billion in growth expected by 2034. Millennials are set to lead this surge, contributing significantly to the cosmetics market’s expansion. With a projected global cosmetics spend of $193 billion, millennials will account for nearly half of this figure. Generation Z will follow closely with $158 billion in spending, reflecting the growing importance of younger generations in shaping beauty trends and preferences.
According to Claire Marty, Vice President of NIQ Beauty, understanding the generational differences in consumer behavior is essential for beauty brands to succeed in this evolving landscape. She emphasized that beauty companies should move beyond a “one size fits all” approach and tailor their strategies to meet the distinct needs and values of each generation. By leveraging consumer trends and sales data, brands can identify unmet needs and navigate the complexities of the retail environment.
Key Generational Insights in Cosmetics Spending
Millennials: Dominating the Market Millennials, born between 1977-1995, will be the dominant force in the global cosmetics market over the next decade. By 2034, millennials will surpass Generation X, contributing 24% of the global cosmetics spend. In 2024, millennials will lead the charge in spending on skin and hair care products in both the United States and internationally. More than half of millennials (56%) regularly consider their appearance, with a preference for natural ingredients and food-based substitutes in their beauty routines.
Beauty services will see the highest growth among millennials, particularly in Europe, where 57% of millennials’ beauty budgets are spent on services, compared to only 6% on makeup. In North America, the trend is slightly different, with millennials allocating 11% of their beauty budgets to makeup. Millennials are also driving the popularity of beauty trends on social media, with TikTok emerging as a key platform for beauty inspiration. For example, the hashtag #makeupover30 has seen a 194.9% year-over-year growth, highlighting the increasing interest in makeup tips for older demographics.
Generation X: The Big Spenders Generation X (born 1965-1980) is another critical generation in the cosmetics industry, with significant growth expected in spending between 2024 and 2034. Generation X is projected to contribute an additional $150 billion in cosmetics spending over the next 10 years, with North America and Asia Pacific driving much of the growth. In particular, the affluent Chinese middle class and Indian consumers will be key drivers of this expansion.
Generation X shows strong engagement with cosmetics, surpassing the general population in 80% of product categories. Skin care is expected to be the fastest-growing category for this generation, with a 4.9% annual growth rate. Convenience is also a top priority for Generation X, with many opting to shop at one-stop platforms like Amazon and hypermarkets. TikTok is becoming increasingly influential for this generation as well, with #over40makeup gaining traction and attracting 6.9 million views.
The Importance of Sustainability and Social Values Both millennials and Generation Z are prioritizing health and sustainability in their beauty product choices. Millennials are more likely to choose products with low or zero environmental impact, while Gen Z places greater emphasis on social equity, supporting at-risk communities, and minority groups. These shifting values highlight the importance of brands aligning their offerings with the growing demand for eco-friendly and socially responsible beauty products.
The Future of Cosmetics
The “Beauty Futures – A Generational Journey Guide for Global Cosmetics Buyers” report provides a detailed analysis of generational preferences, behaviors, and emerging trends in the cosmetics industry. The report forecasts the future growth of the global cosmetics sector, emphasizing the need for beauty brands to understand the evolving priorities of different generations. It also explores the impact of platforms like Google and TikTok in shaping beauty trends, providing valuable insights for brands to stay ahead of the curve.
In conclusion, the report from NIQ, World Data Lab, and SPATE underscores the significant role generational shifts will play in the cosmetics industry over the next decade. With millennials and Generation Z leading the charge, beauty brands must adapt their strategies to meet the unique needs and values of these influential consumer groups. By understanding these trends, companies can drive growth, increase engagement, and deliver tailored content that resonates with their target audiences.
For more insights on the future of the cosmetics market, including detailed forecasts and trends, visit the full report from NIQ, World Data Lab, and SPATE.
