Ulta Beauty & NIQ’s Study on Gen Alpha & AI-Powered Discovery

Ulta Beauty unveiled findings from a new Ulta Beauty-commissioned study conducted by NielsenIQ, “Smart Beauty: AI, Personalization & the Gen Alpha Consumer.” 

This study explored how Gen Alpha consumers are navigating beauty and wellness in an increasingly AI-driven world. 

Kelly Mahoney, chief marketing officer at Ulta Beauty, said, 

“Our Smart Beauty research shows that Gen Alpha is embracing AI and personalization in ways that are fundamentally changing how beauty and wellness is discovered and shopped, while still valuing the importance of physical stores and real-world experiences. What’s especially powerful is that technology is fueling more exploration and engagement with the category, making discovery faster, more relevant and more inspiring for Gen Alpha consumers.”

The Smart Beauty study reveals Gen Alpha as embracing technology while still valuing in-person experiences and trusted guidance.

Smart Beauty Study Findings

While 78% of Gen Alpha consumers discover beauty products through at least one online source, 77% then seek real-world validation. Respondents said they visit stores to try products in person (37%), ask family or friends how to use products (37%), and discuss products with peers (36%).

Despite being digital natives, many Gen Alpha consumers still prefer shopping for beauty products in-store. The top reasons: being able to take products home immediately (43-51% across categories) and discovering or exploring new products in person (33-49% across categories).

Gen Alpha consumers who use AI tools are significantly more likely to visit stores to browse and try products in person than non-AI users (57% vs. 36%).

Nearly three-quarters (73%) of Gen Alpha beauty consumers already use personalization tools while shopping for beauty products. The top reasons for using these tools include discovering new products (53%), trying something new (45%), and learning how to use products (42%).

Teen boys are leading Gen Alpha’s adoption of AI-powered beauty tools, with 26% using AI shopping assistants – nearly double the rate of other Gen Alpha groups (~15%). Compared to pre-teen boys, they are also more likely to be aware of (84% vs. 72%) and use (79% vs. 65%) personalization tools, underscoring their comfort with customized beauty experiences.

Compared to non-users, Gen Alpha consumers who use AI shopping assistants are more likely to say personalization makes beauty feel more relevant (44% vs. 24%), more fun and engaging (42% vs. 27%), and more efficient by helping save time while shopping and exploring products (42% vs. 29%). 

They are also more likely to trust recommendations when they understand why products are being suggested (38% vs. 23%).

Gen Alpha’s parents remain highly involved in beauty purchasing decisions, with 98% saying they play an active role in what beauty and personal care products are purchased. They are also the single most helpful beauty influence for Gen Alpha (41%), outranking social media (34%) and friends (29%).

For retailers, trust starts with safety and guidance: one-third of parents and guardians (33%) say the most important way to build trust is by creating safe, welcoming environments for Gen Alpha, including age-appropriate assortments, clear ingredient labeling and knowledgeable in-store associate guidance.

The study underscores Ulta Beauty’s commitment to understanding and evolving alongside the next generation, as well as building beauty and wellness experiences that are personalized, empowering, responsible and rooted in trust.