The good news? Millennials spend more - paying an average of 25 percent more for cosmetics than other age groups. The majority of cosmetics buyers pay between $5 and $20 for products.
TABS Group estimates that cosmetic sales in the US total over $12 billion annually (excludes skin care and hair care products), with most cosmetics shoppers buying more than seven types of products throughout the year.
Kurt Jetta, founder / CEO, TABS Group, said, "The heaviest cosmetics shoppers demonstrate no brand loyalty, purchasing more than 8 brands, on average, and shopping at many more outlets than lighter buyers. Consistent with the data from our Consumer Value Study earlier this year, most consumers say they prefer to shop for cosmetics at stores that offer good deals. The bottom line is that more deals lead to more sales, particularly among the heaviest buyers who have no loyalty to specific brands.”
Who is spending the most?
Millennial Women, $75k to $99k Income Group, and Hispanics are the Most Involved
Millennial women between the ages of 25 and 34 purchase the most cosmetic products, an average of between 9 and 10 product types per year. Hispanic women also show higher involvement than other ethnic groups, purchasing over 8 product types per year.
The study surveyed 1000 women and 250 men between the ages of 18 and 74 on the types of beauty products they purchase, frequency of purchases, and the outlets they patronize.
More Key Insights, from the Report
Social media is becoming increasingly important, as online beauty gurus are replacing in-store beauty advisors. Only 24 percent of heavy buyers indicated that they prefer to shop in stores with in-store, and it’s likely that buyers are increasingly turning to online beauty advice that they access through social media.
42 percent of heavy buyers say that social media is very important in making their purchasing decisions.
Cosmetic blogs (29%) and YouTube (23%) were the most popular resources among these involved buyers.