The skin care segment has grown consistently in smaller low-pricepoint categories like facial cleansers and
masks, which make it easy for the consumer to experiment with new products and formats.
by emphasizing safety, environmental
responsibility and simplicity in its
Consumers increasingly understand
the impact of ingredients across
categories, said González, which has
led to the rise of ingredients such as
Amazonian clay and coconut in skin
care/makeup hybrid products. At the
same time, demand for cruelty-free
beauty is skyrocketing, benefitting
brands such as Urban Decay and Nyx.
Fragrance continues to suffer from
a shift in holiday spending behaviors,
said Jensen. Christmas 2016 and
Valentine’s Day 2017 saw sales declines
year over year for the category, she
said, with sales picking up after those
holidays. Jensen noted that Mother’s
Day and Father’s Day sales have
actually risen because retailers got out
ahead of the holidays more this year.
The average price in fine fragrance
remains relatively flat, Jensen said.
While gift sets and juices comprise the
largest prestige fragrance categories,
they aren’t growing significantly. On the
other hand, home fragrance has done
well, particularly with products such as
reed diffusers and candles.
Gen Z Overtakes
While millennials have occupied the
majority of generational trend stories
over the last decade, Generation Z
will amplify many of today’s emerging
trends. Born after 1995, Gen Z will, by
some estimates, comprise 40% of all
consumers by 2020. Currently, this age
cohort has more than $40 billion in
During her presentation, González
noted that the Gen Z comprises about
19% of population, compared to 29%
for millennials. Millennials remember
life before and after social media and
mobile phones, while Gen Z takes these
technologies essentially for granted.
While millennials use social media for
sharing and activities such as makeup
experimentation, Gen Z uses makeup
to achieve the aspirational looks they
see in their feeds.
According to González’s data, 61%
of consumers 35-plus use makeup.
These consumers built the makeup
category over the last four or five
decades and remain highly engaged in
it. To compare, millennials and Gen
Z consumers use makeup at a rate of