From power shoppers to power shapers
The beauty industry is quietly rebalancing its priorities. High-spending Gen X consumers now account for almost half of total beauty spend, while boomers are finally being courted for their higher disposable income, efficacy-led buying habits and loyalty. Yet brands are still obsessed with Gen Z beauty influence, even as this group spends less overall. Analysts estimate Gen Z represented 17% of Europe’s beauty and personal care spend in 2025, with this share expected to rise to 20% by 2029. Globally, the Gen Z beauty market is projected to grow from USD 208bn (approx. RM956bn) in 2026 to USD 592bn (approx. RM2.72trn) by 2034, underscoring their long-term importance. What Gen Z lacks in immediate purchasing power, it more than makes up for in trendsetting authority, shaping product aesthetics, brand tone and what “works” on social platforms that older, higher-spending shoppers also see.
Premium accessible beauty: Gen Z’s defining paradox
Gen Z is treating beauty as an accessible luxury during a period marked by economic pressure and global uncertainty. They want the sensorial cues and efficacy of premiumisation, but at price points and formats that feel realistic for constrained budgets. This tension defines the new premium accessible beauty playbook: flexible entry tiers, smaller sizes, and clear proof of performance. The oldest Gen Z consumers are approaching 30, and their engagement with beauty has matured. They now demand authenticity, complexity and genuine cultural connection rather than algorithm-driven sameness. Although beauty spending among US female teens rose 10% year-on-year in 2025 to an average of USD 374 (approx. RM1,720) per person, their loyalty is highly conditional. Brands must respect the paradox of strong values colliding with financial strain, positioning products as tools for self-expression and wellbeing rather than quick cash-ins on microtrends.
Why retailers now see Gen Z as cultural gatekeepers, not cash cows
For beauty retailers, Gen Z has shifted from being the target spender to the critical cultural gatekeeper. This cohort drives the aesthetics, language and product rituals that ripple out across platforms like TikTok and Pinterest, and ultimately influence what older, more affluent shoppers seek out. As a result, a winning beauty retail strategy now treats Gen Z as the filter through which brand relevance is judged, even if Gen X and boomers carry the bigger baskets. Influence must compound over time: quick-hit viral moments are less valuable than sustained credibility in Gen Z communities. Brands that offer transparency, individuality-affirming experiences and credible results stand to earn repeat engagement, not just one-off trial. Retailers are reframing success metrics around share of conversation, cultural resonance and cross-generational halo, recognising that capturing Gen Z’s approval can indirectly unlock higher-value spend from other cohorts.
ASOS bets on a high-low brand strategy to win young trendsetters
ASOS is leaning directly into Gen Z beauty influence with an explicit high-low brand strategy. Its face and body division, already a strong performer, now aims to mirror what a real make-up bag or bathroom shelf looks like: a mix of prestige and budget products across make-up, skin care, hair care and fragrance. With around 190 beauty brands spanning mass to premium, ASOS is positioning itself as the place where shoppers can assemble a full look or trend in one basket. Each month, the retailer drops a trend-driven “hero” fashion collection, then curates a complementary edit of high-low beauty products that match the moment. This approach recognises that younger consumers don’t shop in strict tiers; they splurge selectively and save strategically. By normalising that mix, ASOS turns Gen Z’s everyday habits into a formalised beauty retail strategy designed to drive frequency and loyalty.
The next play: designing beauty ecosystems around influence first
Looking ahead, the most effective beauty retail strategies will be built around influence-first ecosystems. Gen Z’s role as cultural gatekeeper means assortments, merchandising and content must start from their behaviours, then scale out to other demographics. Retailers will increasingly curate high-low beauty assortments that feel native to social feeds, blur lines between fashion and face products, and offer discovery formats that reward experimentation without demanding full-size, premium prices every time. At the same time, they cannot ignore the spending power of Gen X and boomers, whose needs around efficacy, longevity and anti-ageing remain central to growth. The opportunity lies in letting Gen Z shape the narrative and aesthetics of beauty, while ensuring ranges still serve older shoppers’ priorities. Those who can reconcile this divide—offering premium accessible beauty that feels culturally sharp yet financially grounded—will be best placed to thrive.