Home FASHION & SHOPPING 4 Ways Millennials are Single-Handedly Changing the Beauty Industry

4 Ways Millennials are Single-Handedly Changing the Beauty Industry

As the youngest millennials are now entering their 20s, we’ve been able to get a good sample of their spending habits and purchasing power. At just over 83 million people, millennials are currently the largest living generation, making up over a quarter of the U.S. population. The sheer size of this group alone has the power to drastically change the landscape of our consumer market, making it increasingly important for brands to understand their unique spending habits and purchasing preferences.

In recent years, millennials have made their mark on spaces like the housing market, the restaurant business, the coffee industry, and the live music industry. But one market that millennials have made perhaps the biggest impact? The beauty industry. A whopping 40% of millennials report increasing their purchases of natural skin and hair care products in the last year. Keyword: natural.

1. They pay closer attention to the ingredient labels

According to Linkage Research, “more than any other generation, millennials believe the products they use on their skin and hair can directly impact their health and well-being.” Their research suggests that 71% of the millennial population believes it’s important to understand the ingredients in their hair care products, and a staggering 80% believe it is important to understand the ingredients in their skincare products.

Despite the lack of regulation on the beauty industry from the FDA and other government agencies, millennials are taking matters into their own hands and ditching products that contain synthetic chemicals like parabens, silicones, and sulfates. Instead, they are opting for more organic and plant-based products that are cruelty-free and vegan. The millennial’s desire for clean, healthy products has sparked a rise in DIY and at-home beauty “hacks,” like using coconut oil for healing acne and moisturizing hair.

2. They shop for price and convenience

Millennials are the first generation to grow up with online access. They are also the first generation to enter adulthood in extreme debt, making it understandable that price and convenience pay a large part in the purchasing decisions of millennials.

This has been demonstrated largely in the prescription beauty department. In the past, the only option for someone looking to cure their acne or melasma was to wait months on end for a specialist appointment with a dermatologist. Thanks to today’s advanced technology, consumers can now purchase prescription skincare products online without having to wait for an appointment with a dermatologist. In the long run, these online services are saving millennials time and money, seeing as the number of millennials who lack medical coverage has greatly risen since 2016.

3. They align with brands that do good

2015 Nielsen poll found that 73% of millennials are willing to pay more for sustainable goods and brands with a cause. For the beauty industry, this means that consumers are opting for products based on their ingredients, and the sustainability and ethical practices of the company and manufacturer. Millennial consumers are not only paying close attention to the ingredients in the products they purchase, but they also want to know if their products are made by employees working in poor conditions for minimal wages or if product testing is being done on animals.

Making purchase decisions based on the sourcing of products and ethical practices of manufacturing is a relatively new concept in consumerism. In 2015, “brands who showed a commitment to sustainability saw sales grow more than 4% globally,” according to an article by Inc.

In the last five years alone, there has been an emergence of brands to all areas of consumer markets founded on the premise of creating sustainable products that give back to a greater good. Toms, one of the pioneer brands of sustainable consumerism movement, was founded on the idea that every time a pair of shoes is purchased, another pair will be given to someone in need.

Consumers are also closely watching where brands are spending money in a social and political manner. Companies build brand loyalty with their customers by donating to causes and political figures that align with customers’ viewpoints and lifestyles while being transparent about it on social media.

4. They create brand loyalty through online presence

Brands have also been able to build ]brand loyalty with millennial consumers through their online presence. Gone are the days of one-way marketing. Thanks to the internet and social media, marketing has become a two-way conversation. When done right, social media can take a brand or service to the next level, especially in the beauty industry.

According to a Retail Dive survey of 2,000 millennial Instagram users, 85% revealed that they follow accounts that are style and beauty based, and 72% admitted that they would buy beauty products and services based on an Instagram post, forcing beauty brands and salon services to step up their social media presence if they want to see growth.

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