The global beauty industry is seeing unprecedented growth at US$1.1 trillion, with Millennials poised to surpass Gen X as the dominant force in beauty spending in the next 10 years.
The findings are from NielsenIQ (NIQ), World Data Lab and SPATE, who have collaborated on a comprehensive generational report focused on the beauty market in the next decade.
The Beauty Futures report reveals Millennials will soon be driving nearly half of global beauty spend at US$193 billion with Gen Z coming a close second at US$158 billion with a projected growth of US$700 billion by 2034, of which Asia will be contributing US$310 billion.
Wolfgang Fengler, CEO of World Data Lab, says the industry’s growth is “a testimony to consumers of all ages and all countries’ desire to use cosmetics and beauty services”.
Claire Marty, Vice President, NIQ Beauty says understanding generational differences is key to navigating the evolving beauty industry.
“This is an opportunity for companies to move beyond “one size fits all” approach and tailor their strategies for each generation,” she said.
Generational beauty takeaways
Millennials:
- will be leading global beauty market growth in the next 10 years, representing 24% of spending globally.
- spending growth on skin and hair care in 2024 outpaces the total market. 56% think about their looks most of the time and are most likely to use natural ingredients or food products as substitutes in their beauty routine.
- spending on beauty services will grow the most by 2034.
- are influenced by TikTok trends with #makeupover30 being the top TikTok hashtag, growing at 194.9% YoY to reflect the search for tips and products specific to their age concerns and needs.
Gen X:
- is the most valuable generation to beauty spending until 2034, growing spend by $150 billion in the next 10 years.
- are heavily engaged across beauty – with higher penetration than the total population in 80% of beauty categories analysed. Skin care as a category will see the fastest growth in the next 10 years – growing at 4.9% YoY ($26.8 billion).
- are likely to shop in all-in-one locations like Amazon and Hypermarkets: convenience comes first.
- TikTok views on makeup has grown to 53% with #over40makeup becoming a popular hashtag (6.9 M views) in 2024.
“Understanding digital trends on platforms like TikTok and Google Search is essential for brands to stay ahead, as it reveals real-time shifts in consumer interests and needs across generations,” said Yarden Horwitz, Co-founder, SPATE.