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Member Exclusive

Research Briefing: Data shows beauty is a key spending category for Gen Zers

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By Dania Gutierrez
Apr 3, 2025

In this edition of the Glossy+ Research Briefing, we look at how Gen Z’s rapid growth in spending power is influencing the beauty market. 

Brands and retailers can’t ignore Gen Z’s growing spending habits

Gen Z has the potential to make a large impact on the world’s economy in the near future. The generation’s total global spending is forecast to reach $12 trillion by 2030, according to a “Spend Z” report from NielsenIQ and GfK in collaboration with World Data Lab. And Gen Z is on track to be the largest and richest generation by 2035, according to credit and debit card data from Bank of America. 

Gen Z’s spending on discretionary categories such as entertainment and travel was notably stronger than other generations, up 25.5% in February this year compared to the same month in 2024, according to Bank of America. Likewise, Gen Z’s spending on necessary and discretionary items has increased faster than the overall population. 

This makes capturing Gen Z incredibly important for beauty brands and retailers. A market report from beauty technology company Revieve examined Gen Z’s growing influence in the beauty and skincare market. According to Revieve’s analysis, Gen Z currently accounts for 35% of total beauty website traffic. Millennials, the next largest group surfing the web, account for 32% of beauty site traffic.

The shopping options that appeal to Gen Z the most and drive purchases, according to Revieve’s report, are AI-powered personalization, interactive experiences like virtual try-on and clean beauty products. In fact, 58% of Gen Z consumers engage in selfie-based digital experiences (13% more than average). When it comes to their clean beauty preferences, 56% of Gen Zers prioritize fragrance-free skincare and 33% prefer paraben-free formulations. 

On social media platforms, health and beauty is the most popular shopping category for Gen Z, according to NielsenIQ’s Spend Z report. This year, 81% of sales generated by TikTok are projected to come from the health and beauty category, according to the report — presumably solidifying beauty as a key Gen Z category for both brands retailers.

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