Teen spending is bouncing again from pandemic lows, in accordance with a latest survey of American teen shopper traits, and e.l.f. cosmetics (ELF) and Ulta (ULTA) are among the many high magnificence beneficiaries.
In line with Piper Sandler’s newest semi-annual Era Z survey, which gathered enter from 7,100 teenagers in 44 states from February 16 to March 22, e.l.f ranked first as the popular make-up model for feminine teenagers whereas magnificence retailer Ulta strengthened its place as the highest magnificence vacation spot.
The class as a complete may very well be poised for progress, the analysts mentioned, with spending on cosmetics, skincare, and perfume rising 10% year-over-year.
In line with the survey, the variety of teenagers who put on cosmetics every day rose to 37%, up from 21% a yr in the past. Moreover, teenagers who put on make-up on daily basis spend a median of $83 extra per yr on magnificence than the typical cosmetics-wearing teen.
e.l.f., which beforehand held the second spot, beat out rivals Maybelline and Tarte for the highest spot. Fenty Magnificence by Rihanna and Sephora cosmetics, that are each owned by LVMH (LVMHF), additionally noticed their positions enhance, reaching the sixth and seventh spots respectively. In the meantime, MAC and Too Confronted, each subsidiaries of Estée Lauder (EL), misplaced floor amongst teenagers.
Ulta remained the favourite magnificence and wellness retailer, adopted by Sephora and Goal. The analysts famous that Goal’s energy within the third spot was bullish for the latest partnership between Ulta and Goal, which is launching Ulta Magnificence in 100 Goal shops and Goal.com.
“Goal was the No. 3 most well-liked magnificence vacation spot at 9% mindshare — additional giving us confidence within the significance of the Ulta/Goal partnership,” the analysts wrote, regardless of teenagers’ choice for in-store purchases slowing considerably.
Whereas teenagers nonetheless most well-liked procuring in shops, they added, Amazon (AMZN) gained “in mindshare for favourite magnificence procuring locations.”
In a earlier interview with Yahoo Finance, e.l.f. CEO Tarang Amin acknowledged that the corporate was pivoting towards Gen Z customers by providing reasonably priced merchandise and fascinating with them on platforms similar to TikTok and Twitch. The corporate even launched product strains in collaboration with Chipotle and Dunkin Donuts aimed to go viral with youthful customers.
Round 83% of feminine teenagers nonetheless go to on-line influencers greater than every other supply for magnificence manufacturers and traits, although that quantity was barely down from final yr. Phrase-of-mouth communication from associates was the second most necessary supply of data when making a magnificence buy.
Edwin is a producer for Yahoo Finance. You’ll be able to observe him on Twitter @Edwin__Roman.