Gen X Drives 44% Of Beauty Spending As Ulta And Sephora Pivot

Beauty marketing is built around teens and twentysomethings on TikTok, but the actual money is elsewhere.

Households with at least one Gen Xer accounted for 44% of every dollar spent on beauty in the past year, while NielsenIQ projects Gen X consumer spending will top $20 trillion globally through 2033. The retailers that figure that out first win the next decade.

The Spending Power Story

Gen X covers people born between 1965 and 1980, per Pew Research, a generation often described as "forgotten" because it sits between the boomer spotlight and the millennial spotlight.

Per NielsenIQ, the Gen X beauty market will grow to 1.3 times its current size in the next five years, driven by financial stability, brand loyalty, and a willingness to spend on anti-aging products that promise long-term results.

Lindy Firstenberg, a consultant at AlixPartners, said Gen X spending power runs about 25% above the national average, adding that the cohort will "maintain this highest spend by generation for at least the next eight years."

Why The Retailers Are Already Moving

Ulta CEO Kecia Steelman told Yahoo Finance in early April that catering to older consumers is part of the company's playbook now, saying "50 is the new 30 and 60 is the new 40s."

Ulta has also been adding menopause-focused brands.

Sephora is investing in Gen X-targeted brands like YSE Beauty (founded by Molly Sims), Sarah Creal and U Beauty, with U.S. EVP of merchandising Carolyn Bojanowski saying the company is focused on expanding for Gen X clients. Bluemercury, the Macy's-owned chain, ran a campaign last year celebrating women over 40 and named Gen X its biggest opportunity.

Why Investors Should Care

The retailers leaning into Gen X have a real edge, with Firstenberg calling Ulta the clear winner because of its push into wellness and menopause.

She also said the value of knowledgeable sales associates is 23% higher for Gen X customers than for Gen Z, which favors stores with full-service counters over apps and TikTok shops.

Skincare is the top category, with anti-aging, longevity and hyperpigmentation products driving most of the spending.

Worth Noting

Gen X is also the "sandwich generation," buying products for kids and aging parents at the same time. Brands chasing teenagers are missing the customer with three wallets open at once.