Why 2019 Will Be the Year of Gen Z
Throughout 2018, the beauty industry was jam-packed with wellness, sustainability and inclusivity. So, what does 2019 have in store?
According to a recent blog post from The NPD Group, 2019 will see areas of growth within each U.S. prestige beauty category, but recession fears may slow the performance of the total market as consumers make the move to more careful consumption.
Larissa Jensen, executive director, industry analyst, beauty, predicts that the radicalization of skin care, inspirational retail and the arrival of Gen Z to impact the next 12 months.
Thanks to social media's quest for extreme transparency, partisan branding proved to be a risk many brands took during 2018.
Jensen wrote, "Given all this intensity, it makes sense that naturals are now moving beyond formulas that are good for your skin to those that are good for your soul, touting the benefits of spiritual and medicinal ingredients. With natural skincare brands growing at twice the rate of total skincare, we expect this growth to continue."
While beauty consumers still continue to flock to experiential retail spaces, Jensen predicts that inspirational retail—think community spaces with coffee shops, lounges and even mini movie theatres—will up the ante.
Jensen explained, "While some stores are permanent, many are pop-ups... Creating these experiences in the most profitable locations is vital to success."
The Debut of Gen Z
According to Jensen, "Gen Z accounts for over $44 billion in annual spending and is poised to become the largest generation of consumers as soon as next year. Wellness and social responsibility are important to them. This generation will drive continued change across major industry platforms like gender neutrality, inclusivity, diversity, sustainability and transparency, and that change will be fueled by technology. Reaching this consumer requires aligning authentically to their values."
Surviving Consumer Anxiety
With an uncertain economic environment looming on the horizon, beauty brands are encouraged to remain thoughtful, authentic and purposeful.
"Growth will come from products, brands, and retailers that provide an escape from their everyday stressors," Jensen emphasized.