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e.l.f. cosmetics, Ulta among American teens’ favorite beauty brands: Survey

Diana L. Skinner April 26, 2022

Teen spending is bouncing back from pandemic lows, in accordance to a the latest survey of American teenager client tendencies, and e.l.f. cosmetics (ELF) and Ulta (ULTA) are amid the major natural beauty beneficiaries.

In accordance to Piper Sandler’s most recent semi-annual Era Z survey, which collected input from 7,100 teenagers in 44 states from February 16 to March 22, e.l.f rated initially as the favored make-up model for female teens even though elegance retailer Ulta strengthened its posture as the leading magnificence location.

e.l.f. gained 300 bps year-over-year, knocking the long-dominant drugstore beauty brand Maybelline to the No. 2 spot. (Piper Sandler)

e.l.f. received 300 bps 12 months-around-calendar year, knocking the lengthy-dominant drugstore magnificence brand Maybelline to the No. 2 location. (Piper Sandler)

The classification as a entire could be poised for expansion, the analysts mentioned, with investing on cosmetics, skincare, and fragrance increasing 10% year-more than-yr.

According to the survey, the amount of teenagers who put on cosmetics each day rose to 37%, up from 21% a year back. In addition, teenagers who dress in make-up just about every day devote an normal of $83 extra for each yr on beauty than the common cosmetics-wearing teenager.

e.l.f., which previously held the second spot, conquer out rivals Maybelline and Tarte for the top place. Fenty Splendor by Rihanna and Sephora cosmetics, which are both owned by LVMH (LVMHF), also saw their positions improve, achieving the sixth and seventh places respectively. In the meantime, MAC and Also Faced, both equally subsidiaries of Estée Lauder (EL), lost floor amid teenagers.

LOS ANGELES, CALIFORNIA - MARCH 12: Fenty Beauty products on display inside the store as Rihanna celebrates the launch of Fenty Beauty at ULTA Beauty on March 12, 2022 in Los Angeles, California. (Photo by Kevin Mazur/Getty Images for Fenty Beauty by Rihanna)

Fenty Attractiveness merchandise on exhibit inside of the keep as Rihanna celebrates the start of Fenty Splendor at ULTA Beauty on March 12, 2022, in Los Angeles, California. (Photo by Kevin Mazur/Getty Photos for Fenty Attractiveness by Rihanna)

Ulta remained the preferred elegance and wellness retailer, followed by Sephora and Concentrate on. The analysts pointed out that Target’s strength in the 3rd place was bullish for the latest partnership concerning Ulta and Concentrate on, which is launching Ulta Attractiveness in 100 Goal suppliers and Target.com.

“Goal was the No. 3 favored splendor location at 9% mindshare — further supplying us confidence in the significance of the Ulta/Concentrate on partnership,” the analysts wrote, even with teens’ preference for in-store buys slowing relatively.

Whilst teenagers nevertheless favored procuring in shops, they included, Amazon (AMZN) gained “in mindshare for preferred natural beauty purchasing destinations.”

In a former interview with Yahoo Finance, e.l.f. CEO Tarang Amin mentioned that the enterprise was pivoting towards Gen Z individuals by presenting cost-effective solutions and engaging with them on platforms this sort of as TikTok and Twitch. The enterprise even released solution strains in collaboration with Chipotle and Dunkin Donuts aimed to go viral with younger customers.

Notably, TikTok surpassed Snapchat (SNAP) and Instagram (FB) for the to start with time and became teens’ beloved social media system, the study identified.

About 83% of woman teenagers nevertheless go to on the web influencers more than any other supply for magnificence brands and traits, while that quantity was somewhat down from last year. Phrase-of-mouth interaction from close friends was the 2nd most essential resource of info when making a beauty order.

Edwin is a producer for Yahoo Finance. You can adhere to him on Twitter @Edwin__Roman.

Stick to Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube

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