The Rise of Generation X in the Beauty Industry
Generation X, often overlooked in the beauty industry, is emerging as a powerful force. With a growing focus on anti-aging and longevity, this generation is reshaping the market and influencing brand strategies.
Why Gen X Matters
Generation X, typically defined as those born between 1965 and 1980, has been dubbed the “forgotten generation.” However, their spending power is undeniable. According to NielsenIQ, Gen X will be the consumer spending leader globally through 2033, surpassing $20 trillion in spending power. This generation makes up roughly 25% of total spend for beauty, both on products and services.
Moreover, the Gen X beauty market is expected to grow to 1.3 times its current size in the next five years. Factors contributing to this growth include financial stability, a focus on anti-aging and longevity, and strong brand loyalty.
According to Chicago-based market research firm Circana, households with members of Gen X accounted for 44% of total dollars spent on beauty in the past year, with skincare being their top category. This aligns with how beauty companies are focusing on solutions tied to skin health, anti-aging, and long-term results—areas that resonate strongly with Gen X consumers.
The Shift in Consumer Behavior
Gen X is not only investing in skincare but also increasing their spending across haircare and makeup. This trend is complemented by a broader focus on wellness and anti-aging. Anna Mayo, a NielsenIQ beauty thought leader, noted that brands are now addressing topics like menopause, which helps keep people engaged and feel valued.
Gen X is also at the “prime spending phase” of their lives. NielsenIQ estimates that between 2021 and 2033, the cohort will spend $15.2 trillion a year, expected to rise to $23 trillion by 2035. Despite experimenting with different brands, Gen X members have high brand loyalty and are likely to stick with a product once it proves effective.
Retailers Adapting to Gen X Needs
Companies are taking note of this shift. Ulta CEO Kecia Steelman mentioned that catering to older generations is part of the company’s business strategy. She emphasized the importance of products that help with aging gracefully, such as those targeting longevity and skin health.
Sephora is also seeing similar growth, actively investing in brands that target the high-spending Gen X group. The company is expanding its assortment with brands like YSE Beauty by Molly Sims, Sarah Creal, and U Beauty, focusing on delivering brands that understand consumer goals and preferences.
Bluemercury launched a campaign last year celebrating women over the age of 40, identifying Gen X as one of its biggest opportunities due to its spending power and focus on luxury beauty.
The Key to Success: Experience and Expertise
According to Lindy Firstenberg, a consultant at AlixPartners, the winners from Gen X’s spending spree will be clear. Ulta is positioned to win because of its focus on wellness and menopause brands. While Sephora has traditionally targeted younger cohorts, it is also emerging as a Gen X “hotspot,” along with Bluemercury.
The key, according to Firstenberg, is investing in curation and one-on-one client experiences. Gen X, who grew up with salespeople working counters at department stores, values the experience as much as the product. The importance of knowledgeable sales associates is 23% higher for Gen X than for Gen Z.
Brands that focus on meeting Gen X where they are instead of chasing younger generations will secure their spending power, Firstenberg added.
How Gen X Spends
Kirti Tewani, a member of Gen X and a content creator focused on promoting beauty and wellness for her cohort, said she’s seen a growing interest in investing in products that work to slow down or prevent further aging. This generation has been largely “untapped” when she started seeing increased attention on it roughly two years ago.
Tewani noted that Gen X is financially more independent, with kids grown older and more time to invest in themselves. They are taking care of themselves from the inside out, focusing on diet, exercise, and sleep.
Gen X is also looking for clean ingredients, coinciding with a larger push toward simpler formulations in the beauty industry. Tewani believes that brands knew this was coming and are now jumping on the bandwagon as they understand where the spending markets are.
The Future of Gen X Spending
According to AlixPartners’ Firstenberg, people in this age group are likely to be in a “sandwich generation,” buying beauty products for both parents and children, contributing to its large spending share. Gen X’s spending power is nearly 25% above the national average, and they are maintaining this highest spend by generation for at least the next eight years.
