Recent data from Alix Partners about the favorite specialty beauty channels of US consumers reveals interesting insights on how each generation is shopping for beauty.
Ulta and Sephora form an immovable duopoly. They hold the top two spots across every single generation. But the battle for the top spot reveals a clear divide.
Gen Z and Baby Boomers both rank Ulta as their number one. For Gen Z, this likely reflects Ulta’s mix of accessible mass brands and prestige labels, paired with a rewards program that suits tighter budgets. For Boomers, it is about practical shopping habits and efficiency.
Millennials and Gen X reverse the order. They rank Sephora first highlighting a preference for the prestige, luxury, and trend-driven brand curation that Sephora is known for.
Sally Beauty holds a unique position. It ranks number three for all four generations. This stability points to a distinct functional niche. Sally specializes in professional haircare, color, and salon supplies. It serves a practical need that transcends age, rather than competing directly on makeup and skincare trends.
The real fragmentation comes in the fourth and fifth spots.
There is a clear shift in priorities among younger shoppers. Both Gen Z and Millennials rank Clean Market fourth. Furthermore, Millennials rank Credo Beauty (another retailer strictly dedicated to clean, non-toxic beauty) number 5. This underscores how deeply sustainability, ingredient transparency, and clean branding resonate with consumers under 45.
Meanwhile, as consumers age, their preference shifts from trendy retail to professional skincare and anti-aging services. Gen X and Baby Boomers both feature dermatologists in their top 5, with Boomers also including Spa/Salon.
Interestingly, Gen Z also ranks dermatologist fifth. But unlike older generations seeking anti-aging, Gen Z’s inclusion of dermatologists is likely driven by the “skintellectual” movement popular on TikTok, where young consumers highly value dermatologist-approved skincare and acne treatments.
I reckon that while giants dominate preferences below them are defined by life stage, values, and a generation’s specific definition of need.