Mind the Gap: Let me take a shelfie: Gen Z’s incoming splurge on beauty products (2024)

CURATED READS FOR GEN Z—AND THEIR Z-CURIOUS COLLEAGUES

first up

Welcome back! This week, we’re exploring how Gen Z shops for beauty products.

Ah, spring. A season of renewal—and a time to refresh Gen Z’s beauty shelf, apparently. McKinsey’s latest ConsumerWise research finds that Gen Z consumers in the United States say beauty products are among the categories they intend to splurge on most in the next three months (behind only groceries and tied with apparel). We expect the beauty market to grow by 6 percent a year, reaching about $580 billion by 2027.

Gen Z has played a major part in that growth (Gen Alpha tweens are also getting in on the action, shopping for tinted lip glosses and even antiaging wrinkle creams *sigh*).

Just because Gen Z intends to splurge on beauty products doesn’t mean sales are a guarantee for any one brand. The market is crowded, which means a beauty brand must know exactly how Gen Z consumers shop and what they expect from a brand if the company’s product is going to stand out on a store shelf.

McKinsey’s special report The State of Fashion: Beauty, helmed by McKinsey senior partners Achim Berg, Kristi Weaver, and coauthors, identifies specific Gen Z beauty shopping behaviors. For example, zoomers are more willing than other generations to shop around for products offering the best value: nearly half of Gen Z consumers in our survey say they research beauty products extensively before purchasing them.

While Gen Z is propelling growth in the mass and “masstige” (AKA prestige for the masses) beauty segments, they are willing to pay more for beauty products from a sustainable brand or for high-quality beauty products (although they are less willing than millennials to do so).

For beauty brands selling premium products, finding success means being able to justify higher prices (for example, by communicating why certain ingredients are more expensive), not just relying on premium positioning alone to demonstrate value. In the adjacent wellness space, consumers are looking for science-backed, clinically proven ingredients more than “clean” ingredients. One could expect this to apply to beauty subcategories as well, including skin care, skin-care-based cosmetics, and hair care.

Some other data points about Gen Z beauty buying behavior from our research stood out:

While the data are useful, there’s one thing brands must deliver if they’re going to build lasting relationships with Gen Zers: a “meaningful, authentic, and collaborative connection,” Weaver and team find. “Beauty leaders must ensure their brands grow and mature alongside Gen Z while also being seen as a positive force for change and innovation in how Gen Z experiences beauty.” A brief that’s more than skin deep!

VISUALIZE IT

When using government services, consumers prefer digital or self-service options over speaking with an agent.

WAIT, DON’T SCROLL

With great power. Gen Zers will soon be eligible for the all-important chief of staff job. While rewarding, the role has been described as a “grit or quit” gig.

CEO, coded. Plotting your future at the top? Let this interactive on the CEO journey be your guide.

‘The sizzle, not the steak.’ This is the greatest risk to an IPO, according to investors.

NOT US; STILL GREAT

Lazy fare. Are Gen Zers “safety capitalists?” [Fast Company]

-Core this, -core that. Subcultures are a thing of the past. Instead, we now have AeStHeTiCs. [NYT]

CROSSWORD