Never Forget: Gen X is driving beauty sales

Move over, Sephora kids.

While younger generations are buying beauty products en masse, data shows that another generation has more purchasing power: Generation X.

Generation X, also known as the “forgotten generation,” refers to people born between 1965 and 1980, according to the Pew Research Center. Sandwiched between baby boomers and millennials, this generation is often overlooked and doesn’t get as much attention as other generations.

But experts said it could be one of the most important generations for the beauty industry in the coming years.

According to NielsenIQ data, Generation X will be the world’s consumer spending leader through 2033, with purchasing power exceeding $20 trillion. This generation accounts for approximately 25% of total beauty spending on both beauty products and beauty services.

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

According to the company, this growth is due to a combination of factors. In other words, this generation is financially stable, established, committed to anti-aging and longevity trends, and values ​​brand loyalty.

According to Chicago-based market research firm Circana, households with Gen

“This aligns with beauty companies’ focus on skin health, anti-aging, and solutions tied to long-term results, all of which are areas that resonate strongly with Gen X consumers,” said Larissa Jensen, beauty industry advisor at Circana.

Spending on overall hair care and makeup will also increase with this cohort, Jensen added.

This trend is complemented by a broader focus on health and anti-aging.

“The beauty industry is no longer ignoring people as they age,” said Anna Mayo, beauty thought leader at NielsenIQ. “This is the first time I’ve seen a brand launch and talk about menopause. … I think this really helps keep people interested. They feel like they’re not buying something that’s made for college students.”

Additionally, Gen

While this generation spends money trying out different brands and products, Mayo noted that members of this generation are more likely to be brand loyal and stick with a product once they like it and continue to invest in it.

“Part of this is that the industry has become very good at developing brands that are made for more niche audiences,” she said. “Not so much in this era of mass-market brands.”

Companies are also paying attention to this growth. Early April, Ulta CEO Kecia Steelman told Yahoo Finance that catering to older generations is part of the company’s business strategy.

“I think 50 is the new 30 and 60 is the new 40,” she said. “So as we age, we want to age gracefully. So if we can find a product that actually helps extend the longevity of our appearance, that’s what we’re focused on.”

Alta did not respond to CNBC’s request for comment.

Sephora has seen similar growth, telling CNBC that the company is aggressively investing in expanding its brand to target the high-spending Gen X group.

Carolyn Bojanowski, Sephora’s executive vice president of U.S. merchandising, said, “With brands like YSE Beauty by Molly Sims, Sarah Clear and You Beauty, we’re targeting Gen X customers specifically. “As we expand our assortment, we remain focused on delivering brands with a clear understanding of consumers’ goals, concerns and preferences, while elevating authentic founder stories and expertise that we believe will resonate with our customers,” he told CNBC in a statement.

Personal care company Bluemercury even launched a campaign last year to celebrate women over 40. The company sees Gen X as one of its biggest opportunities, given their purchasing power and focus on luxury beauty.

Lindy Firstenberg, a consultant at AlixPartners, says there’s a clear winner when it comes to Gen X overspending.

“I think Ulta will win because they’re very focused on wellness and they’re very focused on menopause brands,” Furstenberg said.

Although Sephora ostensibly advertises to a younger demographic, it has nonetheless emerged as a kind of Gen X “hotspot” along with Bluemercury, Firstenberg said. The key, she says, is investing in curation and one-on-one work with clients.

Gen Xers, who grew up working as salespeople behind department store counters, invest in experiences as well as products. Firstenberg said a knowledgeable salesperson is 23% more important to Gen X than Gen Z.

Brands that focus on meeting Gen

“That’s what Gen

Kirti Thewani, a member of Generation X and a content creator focused on promoting beauty and health among her generation, said there is a growing interest in investing in products that slow or prevent further aging.

When she started paying more attention to this generation about two years ago, it constituted a largely “untapped” market.

“Gen “So we’re taking care of ourselves from the inside out.”

Tewani said she has especially seen Gen They also combine these products with a wellness-focused lifestyle that focuses on diet, exercise and sleep, she added.

Tewani says this generation is also looking for cleaner ingredients, coinciding with a growing movement toward simpler formulations in the beauty industry.

“I think the brands definitely knew something like this was going to happen,” Tewani said. “More brands are jumping on this bandwagon because they understand where the consumer market is now, and Gen X is definitely filling that gap.”

Gen X’s age also means that their beauty spending has expanded beyond the surface level.

People in this age group are more likely to fall into the so-called “sandwich generation,” meaning they buy beauty products for both parents and children, contributing a large share of spending, said AlixPartners’ Firstenberg.

They are also a generation that doesn’t care about newness or flashy marketing, but instead look for proven products.

Gen X’s purchasing power is nearly 25% higher than the national average, she added.

“We’re seeing that not only do they have this power, but they’re giving it away,” she said. “They intend to maintain this highest spending by generation for at least the next eight years.”