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Trend 1: Generation Alpha’s Influence on Skincare

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Trend 1: Generation Alpha’s Influence on Skincare

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Dermatologists have warned against children using retinol and acids too early; brands now pivot to gentle, educational messaging.

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Brands like Evereden and Bubble are now creating pre-teen skincare lines with dermatologically safe ingredients.

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Gen Alpha’s total economic influence is projected to reach over $5 trillion by 2029.

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Gen Alpha children, aged 5–13, are now using skincare routines, earning the nickname “Sephora Kids”.

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Parents are enabling skincare purchases, with many Gen Alpha children using parents’ accounts or incomes.

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Influencers on TikTok and YouTube are shaping skincare behaviours among pre-teens.

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AI in beauty is projected to reach $4.4 billion in 2025 with 18.3% CAGR.

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Apps like Neutrogena Skin360 and Perfect Corp’s AI analyzer scan selfies to recommend personalised routines.

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70% of consumers express interest in AI-generated skincare recommendations.

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In an era where personalization is paramount, artificial intelligence is transforming the beauty industry by offering tailored skincare solutions that address individual needs with unprecedented precision. Gone are the days of one-size-fits-all beauty routines. AI-powered technologies are ushering in a new age of personalized skincare that promises to revolutionize how we care for our skin.

The Rise of AI-Powered Skin Analysis

Traditional skincare consultations often relied on visual assessments and questionnaires. Today, AI-powered tools can analyze skin conditions with remarkable accuracy using advanced computer vision and deep learning algorithms. These systems can:

Detect fine lines, wrinkles, and pores

Measure hydration levels

Identify acne patterns

Assess sun damage

Monitor changes in skin conditions over time

Leading Brand Examples:

Neutrogena Skin360: Launched an AI-powered skin analysis tool that uses your smartphone camera to assess skin needs and track changes over time.

L'Oréal's ModiFace: Acquired this AI company to provide virtual try-ons and skin analysis through AR technology.

Perfect Corp: Partners with brands like MAC and Estée Lauder to provide AI-powered skin diagnostics and makeup try-ons.

Data-Driven Product Recommendations

The true power of AI in skincare lies in its ability to process vast amounts of data to generate personalized product recommendations. By analyzing factors such as:

Skin type and concerns

Environmental conditions

Lifestyle factors

Product efficacy data

Customer feedback and reviews

Innovative Brand Applications:

Proven Skincare: Uses an AI engine called "The Skin Genome Project" to analyze over 20,000 ingredients, 100,000 products, and 25 million consumer reviews to create personalized formulations.

Function of Beauty: Employs AI to create custom hair and skincare formulations based on individual assessments.

Prose: Utilizes AI to analyze over 85 factors before creating personalized hair care products.

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Getting Started with AI in Beauty
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The beauty industry's technological transformation is in full swing, with AI leading the charge in personalization and customer experience. While industry giants like L'Oréal and Neutrogena have made significant investments in AI, new brands can enter this space through strategic, measured approaches that don't require massive budgets or extensive technical expertise.

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For emerging brands, the most effective approach starts with basic AI implementations that can be accomplished within three to six months. Initial investments ranging from $5,000 to $15,000 can provide immediate value through features like virtual try-on capabilities, basic skin analysis tools, or AI-powered customer service chatbots. These foundational elements set the stage for more advanced features while providing immediate benefits to customers.

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One of the most cost-effective entry points is through partnerships with established technology providers. White-label solutions from companies like Perfect Corp or Revieve can provide sophisticated AI capabilities without extensive in-house development. These partnerships, combined with cloud infrastructure support, offer scalability and reliability from day one.

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Upcoming Technologies:

Revieve: Partners with global beauty retailers to provide AI-powered beauty advisors

HelloAva: AI chatbot that provides personalized skincare consultations

Skin Better: Uses AI to track skin changes and product efficacy over time

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Success in AI implementation requires methodical data collection and focused execution. Before implementing AI features, brands should establish systems for gathering customer data, including purchase patterns, product feedback, and skin concerns. This information becomes the foundation for personalization efforts and guides development decisions.

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Rather than implementing multiple AI features simultaneously, successful brands typically master one key area initially - whether that's skin analysis, product recommendations, or virtual try-ons. This focused approach allows for perfecting implementation and gathering valuable customer feedback before expansion.

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New brands often face challenges around budget constraints, technical expertise, and customer adoption. These can be addressed through strategic choices like:

- Using subscription-based services instead of building from scratch

- Partnering with established AI providers for technical expertise

- Investing in customer education and clear communication

- Starting with proven solutions before attempting cutting-edge features

Success Stories and Market Impact

Implemented AI-powered Color IQ system

Virtual Artist feature for makeup try-ons

Significant increase in customer engagement and sales conversion

Skin Advisor platform uses AI to analyze skin condition

Reported 90% accuracy in skin age prediction

Saw a 200% increase in conversion rates after implementing AI technology

Rouge Sur Mesure device uses AI to create custom lipstick shades

Combines real-time environmental data with personal preferences

Industry Impact and Market Growth

The integration of AI in the beauty industry has led to significant market changes:

Market Size: The AI in beauty market is expected to grow substantially over the next five years.

Consumer Adoption: Over 70% of beauty consumers express interest in AI-powered personalization.

Investment Trends: Major beauty conglomerates are increasingly investing in AI startups and technologies.

Conclusion

AI is not just changing the skincare industry, it's revolutionizing how we think about beauty and personal care. With major brands from Neutrogena to L'Oréal leading the charge, and innovative startups continuing to emerge, the future of AI-powered personalized beauty is incredibly promising. Brands that can successfully navigate this transformation while maintaining a strong focus on customer needs and ethical considerations will be well-positioned to lead the future of personalized beauty.

The success stories of companies like Proven Skincare, Function of Beauty, and Curology demonstrate that AI-driven personalization isn't just a trend - it's the future of the beauty industry. As technology continues to evolve, we can expect even more sophisticated and personalized beauty solutions that will transform how we approach skincare and cosmetics.

Remember, the goal isn't to implement AI for its own sake, but to create meaningful improvements in customer experience and product effectiveness. Brands that maintain this focus while following a measured, strategic approach are best positioned for success in this exciting and rapidly evolving space.

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Personalized Beauty Routines: How AI is Revolutionizing the Skincare Industry

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Subscribe to the Atomix Blog. Explore the power of AI in skincare as it creates personalized beauty routines, revolutionizing the industry with customized, data-driven products.

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AI chatbots offer personalised advice via natural language processing, expanding skincare accessibility.

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AI In Beauty And Cosmetics Market Size, Share, Trends, And Forecast 2024-2033

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Global ai in beauty and cosmetics market size is expected to reach $8.1 Bn by 2028 at a rate of 19.5%, segmented as by type, personalized recommendation tools, performance marketing measurement platforms, demand forecasting and supply chain tools

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L’Oréal’s Perso uses AI and real-time data to dispense personalised skincare and makeup.

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AI tools can be racially biased if datasets do not include darker skin tones.

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DNA-based Skincare Products Market | Industry Report, 2030

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The global DNA-based skin care products market size was valued at USD 7.61 billion in 2024 and is expected to expand at a CAGR of 6.8% from 2025 to 2030

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The market is expected to grow from $6.96B in 2024 to $7.48B in 2025.

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Unveiling the Accuracy of AI Skin Analyzers

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See how you analyze skin online, what it analyzes, how it provides personal regimens, and the latest findings from the medical study.

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DNA-based Skin Care Market Size & Share Report, 2024-2031

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DNA-based skincare market projected to grow from US$ 8.97 Bn in 2024 to US$ 13.01 Bn by 2031 at a 5.3% CAGR, driven by rising demand for innovation

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On a budget but need help with your skin? Here’s how AI can act as your personal dermatologist

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Trend 3: DNA-Based Personalised Skincare

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Trend 3: DNA-Based Personalised Skincare

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Brands like SkinDNA and EpigenCare use gene analysis to recommend products targeting specific skin traits.

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“Consumers are hoping that DNA analysis will offer the ultimate in bespoke care for the skin. We do welcome this breakthrough, but must advise that genetics are not set in stone.” - Dr. Aamed Khan

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“Consumers are hoping that DNA analysis will offer the ultimate in bespoke care for the skin. We do welcome this breakthrough, but must advise that genetics are not set in stone.” - Dr. Aamed Khan

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Companies now offer saliva-based testing kits with mobile app integration for real-time updates.

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Consumers seek regimens that reflect genetic uniqueness, not generic skin types.

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DNA skincare is framed as preventative health, merging wellness and beauty industries.

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Genetic data requires stronger security than regular data; transparency and consent are vital.

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DNA Based Skin Care Products Market Report 2025- Trends And Outlook By 2034

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Global DNA Based Skin Care Products market size is expected to reach $10.41 billion by 2029 at 8.6%, increasing demand for health and wellness products drives the dna-based skin care products market

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“You combine the whole thing, like a puzzle, and instead of having to buy a lot of products that you think you might need, you actually know exactly what you need” - Dr Wetter

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“You combine the whole thing, like a puzzle, and instead of having to buy a lot of products that you think you might need, you actually know exactly what you need” - Dr Wetter

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In 2022, the beauty market-defined as skincare, fragrance, makeup, and haircare-generated approximately $430 billion in revenue. Today, beauty is on an upward trajectory across all categories. It has proven to be resilient amid global economic crises and in a turbulent macroeconomic environment. Beauty is now an industry that many people, from top-tier financiers to A-list celebrities, want to be a part of-and with good reason. Following a solid recovery since the height of the COVID-19 pandemic, the beauty market is expected to reach approximately $580 billion by 2027, growing by a projected 6 percent a year (Exhibit 1). This is in line with or slightly higher than other consumer segments such as apparel, footwear, eyewear, pet care, and food and beverages.

A dynamic segment that is ripe for disruption, the beauty industry will have reshaped itself around an expanding array of products, channels, and markets before this decade is over. Consumers, particularly younger generations, will spur this shift, as their own definitions of beauty morph while their perceptions of everything-from the meaning of sustainability and the role of influencers and key opinion leaders to the importance of self-care-evolve. Overall, beauty is expected to be characterized by "premiumization," with the premium beauty tier projected to grow at an annual rate of 8 percent (compared with 5 percent in mass beauty) between 2022 and 2027, as consumers trade up and increase their spending, especially in fragrance and makeup.

At the same time, we expect the landscape to become even more competitive, as a range of independent brands that successfully came to market over the past decade seek to scale and as new challengers emerge. Intensifying competition will prompt incumbent brands and retailers to change as well. In line with the trend-driven dynamics in the market, 42 percent of respondents to McKinsey's 2023 survey of consumers across China, France, Germany, Italy, the United Kingdom, and the United States say they enjoy trying new brands. Meanwhile, consumers are increasingly shopping across price points and report that both online and offline stores influence their shopping behavior. Their preference for omnichannel shopping is expected to continue to fuel legacy brands' shift online and independent labels' move into a brick-and-mortar presence.

E-commerce in beauty nearly quadrupled between 2015 and 2022, and its share now exceeds 20 percent, with significant runway ahead. This compares with a 2022 e-commerce share of approximately 30 percent in apparel and footwear, and around 65 percent in toys and games.

A number of factors have fueled e-commerce growth in beauty: the expansion of beauty offerings from online giants like Amazon in the United States and Tmall in China; the increased digital sophistication from direct-to-consumer players; the steadily growing significance of online for omnichannel retailers; and the proliferation of social selling, including livestreaming, in Asia. E-commerce is expected to continue to be the fastest-growing sales channel, at 12 percent per year between 2022 and 2027, but growth in traditional channels-including specialty retail, grocery retail, and drugstores-is expected to pick up postpandemic, as consumers' preference for omnichannel is partly driven by their continued desire for in-store discovery and trial of products (Exhibit 2). Department stores are expected to continue to lose market share globally.

Structural and competitive dynamics are shifting

Where to play will become just as important a question as how to win, given the changing underlying growth tailwinds. The changing dynamics will render the industry's largely homogenous global playbooks of the past decades less effective and require brands to reassess their global strategies and introduce greater nuance and tailoring.

Geographic diversification will become more essential than ever. It was just recently, for example, that brands could focus their footprints on the industry's two top countries: China and the United States. Both countries will remain mighty forces for the industry, with the beauty market expected to reach $96 billion in China and $114 billion in North America by 2027 (Exhibit 3).

But in both markets, growth will be harder to come by for individual brands, not least due to fierce local and foreign competition. Meanwhile, other countries and regions, including the Middle East and India, are ready to step into the limelight, offering distinct potential for specific categories and price tiers. The likely upshot is that many brands will align their geographic strategies to this new world order, which will require a variety of localized playbooks.

Across geographies, another growth opportunity will be products and services in the top tier of the pricing pyramid: the true luxury and ultraluxury beauty market has the potential to double, from around $20 billion today to around $40 billion by 2027.

Five disruptive themes

The next few years will be a dynamic time for the beauty industry, filled with opportunities and new challenges. Its high profitability, with EBITDA margins of up to 30 percent, will continue to attract new founders and investors to the space. With limited spots available on the beauty palette, successful brands will adapt to the changing rules of the game and secure a uniquely differentiated value proposition amid a saturated market and increasingly sophisticated consumers. Key dynamics will include the following:

The redrawing of the growth map. Slowing growth in China, along with increased local competition, means the country will no longer be a universal growth engine for the industry. As a result, the US market will become even more important, with strong growth, especially over the next few years. This market will become a competitive battleground for established brands and a potential green pasture for new entrants. The Middle East is expected to fuel growth over the same period, with India expected to emerge as a new hot spot in the longer term.

The rise of wellness. As consumers are increasingly engaging with beauty products and services to not only look good but also feel good, the lines between beauty and wellness are expected to continue blurring, with the combined opportunity representing close to $2 trillion globally for brands, retailers, and investors. Wellness-inspired products-such as skincare and makeup with probiotic and Ayurvedic ingredients, ingestible supplements, and beauty devices like LED face masks-have already captured the attention of consumers embracing greater self-care and mindfulness in their postpandemic daily routines. The melding of wellness and beauty will only become more pronounced in the years ahead, in line with an expected CAGR of 10 percent to 2027 for the wellness industry. This trend will represent an untapped opportunity for many, with first-mover advantage for the players that get it right.

The influence of Gen Z.Gen Zers scrutinize brands as part of their search for value. Nearly half of Gen Z respondents in our survey report conducting extensive research on product ingredients and their benefits before purchase, similar to millennials (and compared with only one-third of Gen Xers and one-fifth of baby boomers). Beyond product efficacy and transparency, Gen Zers demand that brands credibly stand for something. In addition to their focus on sustainability, diversity, and inclusion, Gen Zers greatly value brands that have an authentic and approachable image and a story that goes beyond products, and that welcome consumers into a wider community. Engaging with beauty products and services to feel good and express their authentic selves rather than adhering to specific cultural ideals, this cohort is challenging norms not only around the definition of physical beauty but also around gender and product categories.

The imperative to scale. While the past decade has seen a number of new and independent labels benefit from steadily lower barriers to entry, growth beyond a successful initial run to achieve meaningful scale remains elusive for many. Out of 46 brands founded in or after 2005 with global retail sales of $50 million to $200 million by 2017, only five exceeded $250 million in global retail sales five years later, in 2022. Only two achieved global retail sales of more than $750 million. To scale successfully, brands must focus on omnichannel expansion and internationalization. Category expansion appears to be most effective when a brand has grown to a certain size, and when the expansion enhances and protects the brand's unique value proposition.

The recalibration of M&A. Amid continuously increasing interest in the beauty industry from a variety of players-from "strategics" to private equity funds-M&A will continue to play a major role in the industry. As seen in recent years, conglomerates and financial investors alike will pursue deals to invest in promising brands. But dealmaking will not be the same as when cost of capital was low. In the near term, megadeals will likely be few and far between in response to market turbulence. In addition, criteria for M&A targets will shift from a focus on high-growth independent "brands of the moment" to brands with an innovative product pipeline and a demonstrated ability to grow profitably, sustainably, and over the long term.

The years ahead will offer all the right ingredients-from agile channel mixes to consumers eager to explore new products-for the beauty industry's continued growth. For beauty leaders and challengers alike, there will be plenty of opportunities to flourish, if they develop and execute tailored strategies that reflect the changing world of beauty.

Download the full report on which this article is based, The State of Fashion: Beauty (PDF-10MB).

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The beauty market in 2023: A special State of Fashion report

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The glow of the beauty industry has proved hard to resist, attracting many new companies and investors. Here are 5 disruptive trends for 2023 and beyond.

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The oldest members of Generation Alpha turn 13 this year - and they're about to reshape the beauty landscape.

I conducted some preliminary research via a quick Instagram survey last night and immediately learned two things, anecdotally. Gen Alpha is engaging with beauty earlier than their siblings and older family Bir did, and their favourite brands and products are all over the place (Selena Gomez's Rare Beauty; over-scented body butters from Bath & Body Works or The Body Shop in "Merry Cookie" or mango; lip oils; lip masks and their mothers' Drunk Elephant products). What we still don't know, and what will probably take a few more years to crystallise, is exactly who these Gen Alphas are and what they stand for. That's when this will get interesting.

As this group becomes teenagers with spending power, the beauty industry will bend to meet the demands of its newest customers. It will mirror the last five years, which birthed a deluge of new " Gen-Z brands" with different logos, colour schemes and taglines, and saw older brands scramble to overhaul product offerings and marketing to appeal to Gen-Z. Whatever young people like now will become obsolete by the time Alpha's come of age.

Established brands can struggle to keep up. In 2016, Estée Lauder launched "The Estée Edit," an ambitious lineup with over 80 distinct items for millennials ages 18 to 34, with Kendall Jenner as the face. The collection was retired the following year. Last week, Lauder debuted its ombré pink "Nutritious," a three-product range for Gen-Z that it promoted with a TikTok campaign.

I wonder what the 78-year-old brand's Gen Alpha-geared efforts will look like, and when it will be released.

Perfection, san serif logos, minimalist branding, millennial pink, "authenticity" and neutrals are cornerstones of millennial culture; Gen Z rewards individuality, experimentation, edge and subversiveness. The latter has an affinity for drugstore or approachably priced brands (which they know, in most cases, aren't much different than their pricier counterparts), and they prioritise social justice and causes, opting for brands that align with these views.

It would be fitting if today's pre-teens follow their older siblings' lead and reject all that. Maybe they'll decide they like Estée Lauder as is, steeped in heritage, hero products and loyal customers who have been shopping the brand for decades. It's possible. Each generation is the opposite of its predecessor, and what's the opposite of neon yellow and green? Lauder's classic navy and gold colour scheme and script "EL" logo.

It's still too early to know what Alphas will be about, but what I do know is that they'll be defined by a fresh belief system, aesthetic and overall attitude towards beauty. Alphas' older siblings are on Only Fans or trying to be famous online. Does that mean the next generation will be Luddites, or will they take the notion of internet celebrity even further?

During my early years in the adult workforce at WWD, I remember when organisations turned the focus on millennials, my generation. There was endless coverage about people born between 1980 and 1995, their tastes and how brands are appealing to this shopper. A new entrepreneur emerged - the millennial founder - who defined a direct-to-consumer boom that disrupted on channel (online) and price (selling directly to consumers).

I reported on the category extensively, chronicling how Warby Parker, Everlane, Glossier and Bonobos raised millions of dollars to reach their customers directly and online. New beauty lines like Glossier were created expressly for millennials, and legacy names like Estée Lauder realised they had to actively court us with more youthful lines. Eventually, many of the disruptors from the 2010s were deemed "blands" and the beauty industry set its sights on Gen-Z.

It's all coming full circle. On Tuesday, I read an article in the New York Times about how millennials are approaching middle age. Admittedly, it was a shock to see these words for the first time, but then I reframed my narrative: Gen-Z brands, some of which have a target customer approaching 30, will soon seem passé - and this is very exciting for the industry because it means we're on the cusp of an entirely new generation of beauty brands, trends and innovations.

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What Can Beauty Expect From Generation Alpha?

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The oldest members of the youngest generation turn 13 this year. Like Gen-Zers and millennials before them, they're already being defined by a fresh set of beliefs, aesthetics and attitudes.

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Gen Alpha’s new skincare obsession - The PHA Group

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Gen Alpha is driving 49% of skincare sales growth, but brands need to educate this audience and consider how to show their value to parents.

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Gen Alpha tweens hold significant sway over parents' purchases: study

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Gen Alpha is emerging as a luxury-focused generation, with 68% owning a luxury product by the age of 10.

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By: Ally Chow
The Ivey Business Review is a student publication conceived, designed and managed by Honors Business Administration students at the Ivey Business School.

From Toys to Toners?
In January 2024, Sephora faced backlash over the influx of Generation Alpha (Gen Alpha) shoppers, dubbed "Sephora Kids." Millions of social media users voiced concerns about overcrowded stores and the potential harm of trending skincare products, which dermatologists warn can irritate and damage young skin. A New York-based dermatologist, Dr. Lauren Penzi, noted an increase in skin damage in patients aged 10-12 attributed to the overuse of such products, a trend linked to the rise of "Sephora Kids."

Sephora's current strategy does not adapt to the growing Gen Alpha demographic, creating tensions with existing customer segments, as seen in the 2024 backlash. This misalignment has led to key pain points: concerns over "tween" shoppers using unsuitable products without understanding potential health impacts and the overcrowding of stores, which disrupts the shopping experience for other customers. However, this backlash also highlights the strong demand from Gen Alpha, who lack dedicated retail spaces to explore their interest in beauty, contributing to these pain points. Without tailoring its strategy, Sephora risks alienating new and existing customers while missing the opportunity to engage a rapidly growing demographic entirely.
The Glowing Beauty Industry
The beauty and personal care market is experiencing significant growth, projected to generate 677.19 billion USD in 2025, with an annual growth rate of 6 percent through 2028. Skincare alone accounted for 44 percent of the beauty market in 2023,, reflecting an increasingly health and beauty-conscious consumer base. Amid this growth, Sephora has solidified its position as a key distribution channel for brands and consumers, offering a diverse selection of products from nearly 500 brands across skincare, haircare, makeup, and wellness.
Alpha's Aisle
Born between 2010 and 2024, Gen Alpha is currently between the ages of 1 and 14, comprising about 13 percent of the U.S. population in 2024. In 2023 alone, Gen Alpha spent nearly 4.7 billion USD on beauty products, with their spending power projected to reach 5.5 trillion USD by 2029, almost as much as millennials and Generation Z (Gen Z) combined. As the first generation born entirely in the 21st century, Gen Alpha is projected to be the most tech-savvy and digitally empowered generation. Their familiarity with technology drives a stronger focus on e-commerce, with young shoppers turning to Sephora's digital channels for education, product information, and purchases.

Many of these consumers are in a unique phase where parents heavily influence purchasing decisions through financial support or permission. Additionally, many Gen Alpha are entering their "tween" years, a transitional period marked by puberty, acne, and a subsequent growing interest in skincare. Among 10-12-year-olds, between 28-61 percent have been clinically diagnosed with acne, and approximately 40 percent of U.S. parents spend over 51 USD monthly on skincare for their tweens and teens. Despite this demand, dedicated retail spaces for the tween demographic are becoming increasingly rare. As a result, Gen Alpha's need for in-person shopping experiences remains largely unmet, creating an untapped opportunity within the beauty industry.
Outpaced or Out of Touch?
Sephora has built an omnichannel strategy that integrates in-store, online, and mobile experiences. By analyzing customer data, it tailors product recommendations and promotions to enhance engagement across all channels. This approach has strengthened Sephora's position as a global industry leader, driving 19.6 billion USD in revenue and operating over 3,000 stores across 34 countries as of 2024.

Sephora primarily targets women aged 24-35, including Millennials and Gen Z, whose purchases are influenced by friend recommendations and repeat buying. In April 2024, over a third of global visitors to Sephora's website were between 25 and 34 years old, followed by 35-44-year-olds, who accounted for 18 percent of online traffic. Beyond its core customer segments, Sephora also caters to professional makeup artists and hairstylists by offering various products across various price points, quality levels, and functions.
Not Just Playing Dress-Up: A Targeted Approach
Sephora should implement a two-part solution that positions the brand as a "big sister" helping parents and Gen Alpha develop healthy, long-term skincare habits with safe and accessible products. By creating a dedicated space for "Sephora Kids" and their parents to explore, learn, and shop together, Sephora can create a more inclusive and educational beauty experience while better serving the needs of Gen Alpha consumers.
Digital Experience Enhancement
Sephora should expand its website categorization by introducing curated online sections targeted at young consumers. While Sephora currently offers a "Skincare by age" category, it only includes products for customers in their 20s to 50s, overlooking a growing Gen Alpha customer segment. Through digital experience enhancement, customers could skim through new categories like "Trending with Gen Alpha", "Beginner's Guide to Clear Skin", and "Parent Picks," which would feature popular products alongside safer, age-appropriate alternatives.

Gen Alpha's interest in trending brands is evident, having spent over 63.4 million USD and 56.6 million USD on Drunk Elephant and Glow Recipe, respectively. Sephora can guide young shoppers toward safer choices by incorporating these brands while showcasing less potent and irritating options, such as The Inkey List. For tweens seeking acne solutions, "Beginner's Guide to Clear Skin" can highlight suitable products like pimple creams and acne patches. Meanwhile, "Parent Picks" can serve as a resource for parents, featuring dermatologist-approved products like Supergoop! Sunscreen will help parents and Gen Alpha build healthy skincare habits.

E-commerce continues to grow, with Sephora projected to generate 306 million USD in online net sales in 2025, and online shopping among 12-15 year olds increasing by 39 percent since 2021. Gen Alpha increasingly turns to e-commerce for beauty solutions, education, and social validation. However, many "tween" customers lack product knowledge, often leading to the popularity of unsuitable products. Sephora can shift demand toward gentler products while enhancing the online shopping experience by creating a dedicated space that prioritizes product safety and parental guidance. Additionally, encouraging digital engagement helps reduce in-store crowding, improving the shopping experience for all customer demographics.
Curated In-Store Aisles
To complement its digital experience enhancement, Sephora should further tailor its in-store offerings for Gen Alpha by introducing curated aisles that feature age-appropriate skincare and beauty products. These sections would showcase less potent products such as cleansers, moisturizers, and sunscreen, products that Artemis Patrick, President and CEO of Sephora North America, identified as the main necessary products for Gen Alpha. She also advised against usage of potent ingredients such as retinol and vitamin C serums, reinforcing the need for safer alternatives. Products should be selected based on brand recognizability and product popularity while ensuring they cater to Gen Alpha's sensitive and acne-prone skin. Brand packaging and marketing should also be considered, as Gen Alpha strongly emphasizes aesthetics, exemplified by Drunk Elephant's bright colours and playful product names, such as the "Itty Bitty Midi Committee Acid Kit."

Dedicated Sephora beauty advisors can be positioned in these aisles to offer personalized recommendations and guidance for young customers. To better assist "tween" customers, Sephora should implement specialized training through interactive sessions and e-learning modules, equipping employees to communicate with both young shoppers and their parents effectively. Advisors should also be well-versed in age-appropriate skincare, ensuring they can help "tween" customers make informed, safe choices while creating an engaging and educational shopping experience.

Building on its omnichannel strategy, Sephora should integrate QR codes throughout the curated aisles, linking directly to its website. These QR codes would provide customers with instant access to product information, including customer reviews, photos, and how-to-use guides. Sephora's data shows that 70 percent of customers who visit its website before purchasing in-store do so within 24 hours, with these shoppers spending 13 percent more on average. By offering an additional in-store information source beyond store employees, QR codes can reduce demand for beauty advisors, leading to shorter wait times, faster customer turnover, and less in-store crowding. Website-linked codes also align with Gen Alpha's tech-savviness, catering to the potential preference for independent, digital-first shopping experiences over direct human interaction.

To further engage Gen Alpha, QR codes should also link to social media content featuring curated products. Sephora should collaborate with influencers to create age-appropriate promotional content using and promoting high-selling, tween-suitable products. By commissioning specific posts, Sephora can ensure the content resonates with both "tweens" and their parents. In 2024, YouTube and TikTok were the most popular social media platforms among Gen Alpha, with 46 percent using YouTube and 21 percent using TikTok. Influencers on these platforms should be selected based on viewership and engagement levels, ensuring they maintain a family-friendly image that aligns with Sephora's brand values.

Gen Alpha is highly influenced by social media, with 25 percent seeking shopping inspiration from influencers and 55 percent wanting to buy products endorsed by their favourites. Since 2023, there has been an 11 percent increase in Gen Alpha using social media to discover products they want to purchase. Sephora can capitalize on this growth by tapping into Gen Alpha's aspirational motivations. Many "Sephora Kids" look up to online influencers wanting to purchase and use the same products to mirror their role models. By linking influencer-led content in stores, Sephora can drive product desire for suitable products and increase sales, reinforcing its relevance with the next generation of beauty consumers.

Recognizing the demand for dedicated in-person spaces for Gen Alpha, these curated aisles would provide a safe environment for young customers to explore and learn about beauty products. Sephora can position itself as a "big sister" for both parents and "tweens", helping them develop healthy skincare habits as they transition into their teenage years.
Glam for Generations: Long-Term Positioning
Implementing this two-part solution provides Sephora first-mover advantage, positioning it as a pioneer in catering to the next generation of beauty consumers. By engaging Gen Alpha early, Sephora acts proactively rather than reactively. Sephora secures long-term customer retention and multi-generational appeal as the demographic's discretionary income grows and brand loyalty forms. Providing a trusted space where young consumers feel seen, understood, and empowered reinforces Sephora's role as a constant in their evolving growth. This strategic repositioning not only strengthens Sephora's connection with Gen Alpha but also ensures alignment across all customer segments, preventing future backlash and preserving an enjoyable shopping experience for all.
Beauty Meets Boundaries
Growing concerns over youth using potent skincare products have already prompted regulatory responses. In February 2025, a bill was introduced in California to make it illegal for minors to purchase skincare or cosmetics containing Vitamin A or Alpha hydroxy acids. As of March 2025, the bill is still under development. Similarly, in Sweden, retailer Apotek Hjärtat restricted the sale of potent anti-aging products like retinol and vitamin C to individuals under 15, effective March 2024. If more regions adopt similar regulations, Sephora could face restrictions on marketing and sales to Gen Alpha, complicating store operations and threatening its relationship with the "Sephora Kids" demographic. To mitigate this, Sephora could introduce clear, age-appropriate labelling in stores and online. Using colour-coded stickers on products will help parents and young shoppers identify unsuitable products. Potent adult skincare products, such as those containing retinol or Vitamin A, can be marked with a coloured sticker indicating their unsuitability for younger customers. Online, an advisory pop-up could alert customers about the strength of ingredients when checking out these products. By furthering the promotion of dermatologist-approved, safe options, Sephora can assist parents and "tweens" in learning about safe skincare, reinforcing its commitment to responsible retailing and preserving the effectiveness of Gen Alpha-tailored solutions.

Another risk stems from Sephora's plan to implement mass layout changes across its 700 North American locations. In response to the rise in mobile in-store checkouts, Sephora plans to add modular displays and alter the snake layout of products before checkout. These changes could limit the financial and operational capacity to tailor aisle layouts for Gen Alpha. As a mitigation, Sephora can implement the proposed digital and QR solutions immediately. QR codes could be added to existing displays to promote suitable Gen Alpha products. Sephora should analyze sales data and in-store traffic patterns to better assess demand after implementation to identify the need for more Gen Alpha-focused solutions. Rather than committing to large-scale aisle redesigns right away, Sephora could also test small-scale modifications, such as pop-ups or seasonal displays, in selected stores after assessing the performance of these changes.
Setting the Foundation
Gen Alpha represents a significant opportunity for Sephora as they mature and gain more spending power. However, Sephora's current strategy has not fully captured this emerging demographic. By adapting its strategic approach, Sephora can engage younger consumers while preserving the brand's premium experience for existing customers. This proactive strategy will build long-term brand loyalty with Gen Alpha, while preventing potential dissatisfaction and backlash from other customer segments.

By: Ally Chow
The Ivey Business Review is a student publication conceived, designed and managed by Honors Business Administration students at the Ivey Business School.

From Toys to Toners?
In January 2024, Sephora faced backlash over the influx of Generation Alpha (Gen Alpha) shoppers, dubbed "Sephora Kids." Millions of social media users voiced concerns about overcrowded stores and the potential harm of trending skincare products, which dermatologists warn can irritate and damage young skin. A New York-based dermatologist, Dr. Lauren Penzi, noted an increase in skin damage in patients aged 10-12 attributed to the overuse of such products, a trend linked to the rise of "Sephora Kids."

Sephora's current strategy does not adapt to the growing Gen Alpha demographic, creating tensions with existing customer segments, as seen in the 2024 backlash. This misalignment has led to key pain points: concerns over "tween" shoppers using unsuitable products without understanding potential health impacts and the overcrowding of stores, which disrupts the shopping experience for other customers. However, this backlash also highlights the strong demand from Gen Alpha, who lack dedicated retail spaces to explore their interest in beauty, contributing to these pain points. Without tailoring its strategy, Sephora risks alienating new and existing customers while missing the opportunity to engage a rapidly growing demographic entirely.
The Glowing Beauty Industry
The beauty and personal care market is experiencing significant growth, projected to generate 677.19 billion USD in 2025, with an annual growth rate of 6 percent through 2028. Skincare alone accounted for 44 percent of the beauty market in 2023,, reflecting an increasingly health and beauty-conscious consumer base. Amid this growth, Sephora has solidified its position as a key distribution channel for brands and consumers, offering a diverse selection of products from nearly 500 brands across skincare, haircare, makeup, and wellness.
Alpha's Aisle
Born between 2010 and 2024, Gen Alpha is currently between the ages of 1 and 14, comprising about 13 percent of the U.S. population in 2024. In 2023 alone, Gen Alpha spent nearly 4.7 billion USD on beauty products, with their spending power projected to reach 5.5 trillion USD by 2029, almost as much as millennials and Generation Z (Gen Z) combined. As the first generation born entirely in the 21st century, Gen Alpha is projected to be the most tech-savvy and digitally empowered generation. Their familiarity with technology drives a stronger focus on e-commerce, with young shoppers turning to Sephora's digital channels for education, product information, and purchases.

Many of these consumers are in a unique phase where parents heavily influence purchasing decisions through financial support or permission. Additionally, many Gen Alpha are entering their "tween" years, a transitional period marked by puberty, acne, and a subsequent growing interest in skincare. Among 10-12-year-olds, between 28-61 percent have been clinically diagnosed with acne, and approximately 40 percent of U.S. parents spend over 51 USD monthly on skincare for their tweens and teens. Despite this demand, dedicated retail spaces for the tween demographic are becoming increasingly rare. As a result, Gen Alpha's need for in-person shopping experiences remains largely unmet, creating an untapped opportunity within the beauty industry.
Outpaced or Out of Touch?
Sephora has built an omnichannel strategy that integrates in-store, online, and mobile experiences. By analyzing customer data, it tailors product recommendations and promotions to enhance engagement across all channels. This approach has strengthened Sephora's position as a global industry leader, driving 19.6 billion USD in revenue and operating over 3,000 stores across 34 countries as of 2024.

Sephora primarily targets women aged 24-35, including Millennials and Gen Z, whose purchases are influenced by friend recommendations and repeat buying. In April 2024, over a third of global visitors to Sephora's website were between 25 and 34 years old, followed by 35-44-year-olds, who accounted for 18 percent of online traffic. Beyond its core customer segments, Sephora also caters to professional makeup artists and hairstylists by offering various products across various price points, quality levels, and functions.
Not Just Playing Dress-Up: A Targeted Approach
Sephora should implement a two-part solution that positions the brand as a "big sister" helping parents and Gen Alpha develop healthy, long-term skincare habits with safe and accessible products. By creating a dedicated space for "Sephora Kids" and their parents to explore, learn, and shop together, Sephora can create a more inclusive and educational beauty experience while better serving the needs of Gen Alpha consumers.
Digital Experience Enhancement
Sephora should expand its website categorization by introducing curated online sections targeted at young consumers. While Sephora currently offers a "Skincare by age" category, it only includes products for customers in their 20s to 50s, overlooking a growing Gen Alpha customer segment. Through digital experience enhancement, customers could skim through new categories like "Trending with Gen Alpha", "Beginner's Guide to Clear Skin", and "Parent Picks," which would feature popular products alongside safer, age-appropriate alternatives.

Gen Alpha's interest in trending brands is evident, having spent over 63.4 million USD and 56.6 million USD on Drunk Elephant and Glow Recipe, respectively. Sephora can guide young shoppers toward safer choices by incorporating these brands while showcasing less potent and irritating options, such as The Inkey List. For tweens seeking acne solutions, "Beginner's Guide to Clear Skin" can highlight suitable products like pimple creams and acne patches. Meanwhile, "Parent Picks" can serve as a resource for parents, featuring dermatologist-approved products like Supergoop! Sunscreen will help parents and Gen Alpha build healthy skincare habits.

E-commerce continues to grow, with Sephora projected to generate 306 million USD in online net sales in 2025, and online shopping among 12-15 year olds increasing by 39 percent since 2021. Gen Alpha increasingly turns to e-commerce for beauty solutions, education, and social validation. However, many "tween" customers lack product knowledge, often leading to the popularity of unsuitable products. Sephora can shift demand toward gentler products while enhancing the online shopping experience by creating a dedicated space that prioritizes product safety and parental guidance. Additionally, encouraging digital engagement helps reduce in-store crowding, improving the shopping experience for all customer demographics.
Curated In-Store Aisles
To complement its digital experience enhancement, Sephora should further tailor its in-store offerings for Gen Alpha by introducing curated aisles that feature age-appropriate skincare and beauty products. These sections would showcase less potent products such as cleansers, moisturizers, and sunscreen, products that Artemis Patrick, President and CEO of Sephora North America, identified as the main necessary products for Gen Alpha. She also advised against usage of potent ingredients such as retinol and vitamin C serums, reinforcing the need for safer alternatives. Products should be selected based on brand recognizability and product popularity while ensuring they cater to Gen Alpha's sensitive and acne-prone skin. Brand packaging and marketing should also be considered, as Gen Alpha strongly emphasizes aesthetics, exemplified by Drunk Elephant's bright colours and playful product names, such as the "Itty Bitty Midi Committee Acid Kit."

Dedicated Sephora beauty advisors can be positioned in these aisles to offer personalized recommendations and guidance for young customers. To better assist "tween" customers, Sephora should implement specialized training through interactive sessions and e-learning modules, equipping employees to communicate with both young shoppers and their parents effectively. Advisors should also be well-versed in age-appropriate skincare, ensuring they can help "tween" customers make informed, safe choices while creating an engaging and educational shopping experience.

Building on its omnichannel strategy, Sephora should integrate QR codes throughout the curated aisles, linking directly to its website. These QR codes would provide customers with instant access to product information, including customer reviews, photos, and how-to-use guides. Sephora's data shows that 70 percent of customers who visit its website before purchasing in-store do so within 24 hours, with these shoppers spending 13 percent more on average. By offering an additional in-store information source beyond store employees, QR codes can reduce demand for beauty advisors, leading to shorter wait times, faster customer turnover, and less in-store crowding. Website-linked codes also align with Gen Alpha's tech-savviness, catering to the potential preference for independent, digital-first shopping experiences over direct human interaction.

To further engage Gen Alpha, QR codes should also link to social media content featuring curated products. Sephora should collaborate with influencers to create age-appropriate promotional content using and promoting high-selling, tween-suitable products. By commissioning specific posts, Sephora can ensure the content resonates with both "tweens" and their parents. In 2024, YouTube and TikTok were the most popular social media platforms among Gen Alpha, with 46 percent using YouTube and 21 percent using TikTok. Influencers on these platforms should be selected based on viewership and engagement levels, ensuring they maintain a family-friendly image that aligns with Sephora's brand values.

Gen Alpha is highly influenced by social media, with 25 percent seeking shopping inspiration from influencers and 55 percent wanting to buy products endorsed by their favourites. Since 2023, there has been an 11 percent increase in Gen Alpha using social media to discover products they want to purchase. Sephora can capitalize on this growth by tapping into Gen Alpha's aspirational motivations. Many "Sephora Kids" look up to online influencers wanting to purchase and use the same products to mirror their role models. By linking influencer-led content in stores, Sephora can drive product desire for suitable products and increase sales, reinforcing its relevance with the next generation of beauty consumers.

Recognizing the demand for dedicated in-person spaces for Gen Alpha, these curated aisles would provide a safe environment for young customers to explore and learn about beauty products. Sephora can position itself as a "big sister" for both parents and "tweens", helping them develop healthy skincare habits as they transition into their teenage years.
Glam for Generations: Long-Term Positioning
Implementing this two-part solution provides Sephora first-mover advantage, positioning it as a pioneer in catering to the next generation of beauty consumers. By engaging Gen Alpha early, Sephora acts proactively rather than reactively. Sephora secures long-term customer retention and multi-generational appeal as the demographic's discretionary income grows and brand loyalty forms. Providing a trusted space where young consumers feel seen, understood, and empowered reinforces Sephora's role as a constant in their evolving growth. This strategic repositioning not only strengthens Sephora's connection with Gen Alpha but also ensures alignment across all customer segments, preventing future backlash and preserving an enjoyable shopping experience for all.
Beauty Meets Boundaries
Growing concerns over youth using potent skincare products have already prompted regulatory responses. In February 2025, a bill was introduced in California to make it illegal for minors to purchase skincare or cosmetics containing Vitamin A or Alpha hydroxy acids. As of March 2025, the bill is still under development. Similarly, in Sweden, retailer Apotek Hjärtat restricted the sale of potent anti-aging products like retinol and vitamin C to individuals under 15, effective March 2024. If more regions adopt similar regulations, Sephora could face restrictions on marketing and sales to Gen Alpha, complicating store operations and threatening its relationship with the "Sephora Kids" demographic. To mitigate this, Sephora could introduce clear, age-appropriate labelling in stores and online. Using colour-coded stickers on products will help parents and young shoppers identify unsuitable products. Potent adult skincare products, such as those containing retinol or Vitamin A, can be marked with a coloured sticker indicating their unsuitability for younger customers. Online, an advisory pop-up could alert customers about the strength of ingredients when checking out these products. By furthering the promotion of dermatologist-approved, safe options, Sephora can assist parents and "tweens" in learning about safe skincare, reinforcing its commitment to responsible retailing and preserving the effectiveness of Gen Alpha-tailored solutions.

Another risk stems from Sephora's plan to implement mass layout changes across its 700 North American locations. In response to the rise in mobile in-store checkouts, Sephora plans to add modular displays and alter the snake layout of products before checkout. These changes could limit the financial and operational capacity to tailor aisle layouts for Gen Alpha. As a mitigation, Sephora can implement the proposed digital and QR solutions immediately. QR codes could be added to existing displays to promote suitable Gen Alpha products. Sephora should analyze sales data and in-store traffic patterns to better assess demand after implementation to identify the need for more Gen Alpha-focused solutions. Rather than committing to large-scale aisle redesigns right away, Sephora could also test small-scale modifications, such as pop-ups or seasonal displays, in selected stores after assessing the performance of these changes.
Setting the Foundation
Gen Alpha represents a significant opportunity for Sephora as they mature and gain more spending power. However, Sephora's current strategy has not fully captured this emerging demographic. By adapting its strategic approach, Sephora can engage younger consumers while preserving the brand's premium experience for existing customers. This proactive strategy will build long-term brand loyalty with Gen Alpha, while preventing potential dissatisfaction and backlash from other customer segments.

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Sephora: Breaking Out with Gen Alpha | Ivey Business Review

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Sephora should proactively engage Gen Alpha by creating dedicated digital and in-store experiences tailored to young shoppers and their parents, balancing safety, education, and inclusivity to secure long-term loyalty without alienating its core customer base.

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Beauty is aging down in pursuit of Gen Alpha. Where’s the limit?

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Today’s beauty shoppers are younger than ever, and brands are racing to get a foot in the door by leaning into categories beyond makeup. But how young is too young to have a beauty routine?