Generation X is driving beauty sales

Move over, Sephora kids.

While younger generations are purchasing beauty products in droves, data shows that another generation holds greater purchasing power: Generation X.

Often nicknamed the “forgotten generation,” Generation X includes people born between 1965 and 1980, according to the Pew Research Center. Sandwiched between baby boomers and millennials, the often-overlooked generation hasn’t gotten as much attention as their counterparts.

But experts say this may be one of the most important generations for the beauty industry in the coming years.

Generation X will lead the world in consumer spending through 2033, surpassing $20 trillion in spending power, according to data from NielsenIQ. This generation accounts for approximately 25% of total beauty spending, both on beauty products and beauty services.

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

This growth, according to the company, comes from a culmination of factors: the generation is financially stable and well-established, has leaned into anti-aging and longevity trends, and has strong brand loyalty.

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

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

The cohort will also see increased spending on hair care and makeup, Jensen added.

It’s a trend that has been complemented by a broader focus on wellness and anti-aging.

“We don’t ignore people getting older in the beauty industry as much anymore,” said Anna Mayo, beauty thought leader at NielsenIQ. “For the first time, we’re seeing brands launched and they’re talking about menopause. … I think it really helps keep people engaged. They feel like they’re not buying something that was made for a college student.”

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Although the generation spends its money to experiment with different brands and products, Mayo noted that its members are very loyal to the brand and are likely to stick with and continue investing in a product once it has loyalty.

“Part of the reason is that the industry has become very good at developing brands for much more specialized audiences,” she said. “We are less so in the era of these mainstream brands.”

It’s a growth that businesses are also taking note of. At the beginning of 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 those of us who are getting older want to age gracefully, so if we can find products that actually contribute to the longevity of the look, we look into that.”

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

Sephora is experiencing similar growth, telling CNBC that the company is actively investing in expanding its brands that target the high-spending Gen X group.

“As we expand our assortment – particularly for our Gen United States, to CNBC in a press release.

Bluemercury, a personal care company, even launched a campaign last year celebrating women over 40. The company has identified Generation X as one of its biggest opportunities given their spending power and orientation toward luxury beauty.

The winners of Gen X’s spending spree will be clear, according to Lindy Firstenberg, a consultant at AlixPartners.

“Ulta is going to win because they’ve doubled down on wellness and are focusing heavily on menopause brands,” Firstenberg said.

While Sephora is advertising out-of-home to younger cohorts, Firstenberg said even it is emerging as a sort of Gen X “hotspot,” along with Bluemercury. The key, she says, has been investing in curation and one-on-one meetings with clients.

Gen Xers, who grew up with salespeople working the counters of department stores, invest in the experience as well as the product. Firstenberg said the importance of skilled salespeople is 23% higher for Gen X than Gen Z.

Brands that strive to meet Gen X where they are instead of chasing younger generations will secure their purchasing power, Firstenberg added.

“That’s what Generation X wants: They want the best products, they want to be educated, they want that great talent and service,” she said.

Kirti Tewani, a Gen Xer and content creator focused on promoting beauty and wellness for her cohort, said she has seen growing interest in investing in products that slow or prevent further aging.

This generation represented a largely “untapped” market when they began paying increasing attention to it about two years ago.

“Generation “So we take care of ourselves from the inside out.”

Tewani said she has specifically seen Gen Xers focus on products that offer long-term effects and target areas such as hyperpigmentation, dry skin and enlarged pores. They also combine these products with a wellness lifestyle, she added, with a focus on diet, exercise and sleep.

The generation is also looking for clean ingredients, according to Tewani, which coincides with a broader trend toward simpler formulations in the beauty industry.

“I think the brands really knew this was going to happen,” Tewani said. “Now more and more brands are jumping on the bandwagon because they understand where the spending markets are, and Gen X is definitely filling that gap.”

And Gen X’s age also means their beauty spending goes beyond the surface.

According to AlixPartners’ Firstenberg, people of this age are likely to be part of what’s called the “sandwich generation,” meaning they buy beauty products for both parents and children, contributing to a significant portion of spending.

This is also not a generation that focuses on novelty or flashy marketing and instead wants products that show proven results.

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

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