As shoppers settle into the new year, a new study from Bread Financial, the tech-forward financial company, and Ulta Beauty looked to gain insights into how consumers are thinking about beauty and wellness spending. The research includes a consumer survey of nearly 2,000 U.S. adults.
Overall sentiments from consumers found that consumers will continue to embrace self care and personal expression within daily beauty and wellness routines. The authors of the report said that retailers and brands can expect to see consumers “seeking a holistic approach” with 74 percent of survey respondents reporting that they “prioritize self-care and wellness in their beauty rituals,” with consumers from younger generations leading.
Notably, men are also leaders in spending within the beauty category, citing “joy and self-care” when prompted. According to the report, men are spending about $90 per month on personal care and groom products — more than women on beauty and groom products with an average of $80 per month. The authors of the report said that “men’s passions across categories (and spending) reinforce not only a desire for self-care but also self-expression.”
Finding products that “bring joy into their lives” was a top indicator of why consumers said they purchase beauty products. Almost half of all consumers (46 percent) reported that they find joy in beauty products, which the authors of the report said further demonstrates “a desire to embrace beauty inside and out as a means of happiness, calm and self-fulfillment.”
Products that men indicated “spark joy” the most are hair care (61 percent), skin care (60 percent), bath and body products (58 percent) and fragrances and colognes (54 percent).
Unsurprisingly, many respondents (34 percent) said that their beauty routines play into expressing their true self with Gen Z respondents leading the sentiment. Fifty-two percent of Gen Z consumers said that they use “beauty products to showcase different aspects of their personal identities and styles.” Millennials were close behind at 48 percent, compared to just 33 percent of Gen X and 20 percent of Baby Boomers.
“We’re excited to see younger generations redefining beauty as a source of joy and connection,” said Kelly Mahoney, senior vice president of customer and growth marketing at Ulta Beauty. “Our research reveals that consumers, especially Gen Z and Millennials, find happiness in shared beauty experiences, from collaborative beauty rituals among friends to discovering the latest trends together.”
These insights, said Mahoney, serve to underscore the “important connection between beauty, wellness and joy, which is central to the experiences we seek to deliver for Ulta Beauty’s guests and 44 million loyalty members every day.”
When asked about skin care routines 38 percent of overall respondents said that they think of the time as unwinding. This sentiment is shared by 47 percent of Gen Z consumers and 45 percent of Millennial consumers. Sixty-two percent of Gen Z and 60 percent of Millennials also said that they “find relaxation through soothing practices such as face masks or bath soaks.”
“Despite economic uncertainty, beauty spending remains resilient, particularly among Gen Z and Millennials, and men, who are outpacing women in their beauty and grooming purchases,” said Valerie Greer, executive vice president and chief commercial officer at Bread Financial.
Greer added that as we head into the new year, research indicates that consumers will continue to be focused on value and expects shoppers to be looking at “redeemable rewards and offers to make the most of their beauty budgets.”
