The Millennial Beauty Consumer - US - February 2017

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Who is the Millennial beauty consumer?
Diversity and an open mindset define Millennial generation – And their beauty needs
Figure 1: Generations, by race and Hispanic origin, 2016
Millennials are more engaged in their beauty routines
Figure 2: Beauty routines – Ever do (net)*, by all women 18+ and Millennial women, December 2016
They prefer the natural look – To an extent
Figure 3: Select attitudes toward appearance, by all women 18+ and Millennial women, December 2016
Reaching the Millennial beauty consumer
Results come first, ethical claims set products apart
Figure 4: Purchase influencers, any rank, by all women 18+ and Millennial women, December 2016
Omnichannel shopping important, interactive shopping experiences keep them engaged
Figure 5: Interest and usage of interactive shopping experiences and apps - agree, December 2016
YouTube and social media satisfy the need for research
Figure 6: Research habits and YouTube usage – Agree, December 2016
Themes of authenticity, self-expression resonate
Figure 7: Attitudes toward self-expression and standing out, among Millennial women, December 2016
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Make-up, haircare, and skincare comprise most beauty sales
Category comprised of three segments: Beauty Enthusiast, Occasional Beauty, and Basic Beauty
Millennials are open-minded but feel misunderstood
Women aged 22-39 increasingly spend more on beauty, shop online
Diversity, student loan debt define Millennial generation
MARKET BREAKDOWN
Make-up, haircare, and skincare make up most beauty sales
Figure 8: Share of total US retail sales of beauty products, by segment, at current prices, 2016*
Larger segments drive growth
Figure 9: Percent change of US retail sales of beauty products, by segment, at current prices, 2016*
BEAUTY SEGMENTS
Beauty Enthusiast, Occasional Beauty, and Basic Beauty segments
Beauty Enthusiast
Occasional Beauty
Basic Beauty
Figure 10: Millennial beauty enthusiast profile, December 2016
Figure 11: Millennial occasional beauty user profile, December 2016
Figure 12: Millennial basic beauty user profile, December 2016
MILLENNIAL ATTITUDES AND OPINIONS
Millennials’ self-perceptions at odds with how they think others see them
Figure 13: Millennials’ perceptions of themselves, their generation, and how they think others perceive their generation – Correspondence analysis, February 2016
Methodology
Millennials are more open-minded than other generations
Figure 14: Millennials’ views on society – All issues, index to all, February 2016
Millennials identify a need to disconnect from devices
Figure 15: Attitudes toward being connected, index to all, February 2016
Humor catches their attention, authenticity is important
Figure 16: Seventh Generation + Maya Rudolph | Vajingle, June 2016
Figure 17: Marketing preferences, indexed to all, February 2016
MILLENNIAL SPENDING AND SHOPPING
Women aged 22-39 increase spend toward BPC over the past three years
Figure 18: Mean spend toward beauty segments in the past three months, by segment, April 2013-June 2016
Online shopping preferred, reviews critical
Figure 19: Attitudes toward shopping, index to all, February 2016
Premium products indicate quality, local products increasingly important
Figure 20: Perceptions of quality, index to all, February 2016
MILLENNIALS BY THE NUMBERS
Millennials make up one quarter of the US population
Figure 21: Share of US population by generation, 2012-21
Millennial generation more diverse than older generations
Figure 22: Generations, by race and Hispanic origin, 2016
As Millennials cut costs elsewhere, beauty can be an inexpensive splurge
Figure 23: Median household income, by age of householder, in thousands, 2014
KEY INITIATIVES – WHAT YOU NEED TO KNOW 
Millennial-focused brands, interactive shopping, natural looks are “in”
Products not riding the natural trend, mass and direct sales brands are “out”
Brand extensions, diversity, new lifestages shape Millennials moving forward
WHAT’S IN?
Brands promoting authenticity, fun, self-expression reach Millennials
Figure 24: Usage of other brands of select beauty products among women aged 22-39, April 2011 – June 2016
Figure 25: Usage of M.A.C. products among select beauty segments by women aged 22-39, April 2011-June 2016
Apps, interactive shopping experiences resonate
Ethical and natural claims help set products apart
Figure 26: Sales of Burt’s Bees, Jason, Kiss My Face, and yes To, rolling 52 weeks 2015 and 2016
Millennials prefer the natural look – To an extent
Figure 27: Select attitudes toward appearances, December 2016
WHAT’S OUT?
Products not riding the natural trend fail to reach Millennials
Figure 28: Select product usage, by all women and women aged 22-39, April 2015-June 2016
Direct sales, mass brands struggle amongst sea of competitors
Figure 29: Usage of select mass and direct sales brands among women aged 22-39, April 2011-June 2016
WHAT’S NEXT?
Trending brands capitalize through expansions
Open-minded, diverse generation demands brands represent them
Millennials’ beauty needs are changing as they age
THE CONSUMER – WHAT YOU NEED TO KNOW 
Usage of beauty staples is widespread, Millennials overindex
Special occasions require more complex routines
Millennials more engaged than average in beauty, but still seek simplicity
Millennials are results-driven, but consider ethical claims
Research important to purchase process, interactive shopping resonates
Samples and recommendations drive trial, social media makes an impact
Natural looks resonate, but Millennials still want to look good
PRODUCT USAGE
Usage of beauty staples is widespread, eye make-up usage rising
Figure 30: Usage of select beauty products, by women aged 22-39, April 2011-June 2016
Millennial women overindex for usage of most beauty products
Figure 31: Beauty product usage, by all women, Millennials, younger Millennials, and older Millennials, April 2015-June 2016
BEAUTY ROUTINES
Millennials more engaged in their beauty routines than other generations
Figure 32: Beauty routines – Ever do (net)*, by all women 18+ and Millennial women, December 2016
Weekend looks can be more complex
Figure 33: Repertoire of beauty routines, weekday routine and weekend routine, December 2016
Figure 34: Beauty routines, by ever do (net)*, weekday routine and weekend routine, December 2016
Millennials are more beauty-involved on special occasions
Figure 35: Beauty routines, by ever do (net)*, special occasions, and evening/going out routine, December 2016
Figure 36: Repertoire of beauty routines, by evening/going out routine and special occasion routine, December 2016
Six in 10 beauty enthusiasts take 10+ steps
Figure 37: Repertoire of beauty routines – Ever do (net)*, by beauty segments, December 2016
Hispanics more likely to have complex routines
Figure 38: Repertoire of beauty routines – Ever do (net)*, by Hispanic origin, December 2016
TIME SPENT, SKILLS, EXPERIMENTATION, AND BRAND CHOICE
Millennials more engaged in beauty routines, but still seek simplicity
Figure 39: Time spent on beauty routine, skill level, experimentation, and brand type, by all women 18+ and Millennial women, December 2016
Time, skill, experimentation, and brand engagement shape segments
Figure 40: Time spent on beauty routine and skill level, by beauty segment, December 2016
Figure 41: Experimentation and brand type, by beauty segment, December 2016
Hispanics spend more time on beauty, more likely to experiment
Figure 42: Time spent on beauty routine and skill level, by Hispanic origin, December 2016
Figure 43: Experimentation and brand type, by Hispanic origin, December 2016
PURCHASE INFLUENCERS
Millennials are results-driven, ethical claims a secondary consideration
Figure 44: Purchase influencers, December 2016
However, ethical claims are more important to Millennials
Figure 45: Purchase influencers, any rank, by all women 18+ and Millennial women, December 2016
Beauty enthusiasts prioritize results, basic beauties seek ease of use
Figure 46: Select purchase influencers, any rank, by segment, December 2016
Hispanics overindex for consideration of ethical claims
Figure 47: Purchase influencers, any rank, by Hispanic origin, December 2016
SHOPPING BEHAVIORS
Multichannel shopping key to Millennial purchase process
Interactive shopping experiences pique their interest
YouTube more influential than apps
Figure 48: Shopping behaviors – Agree, December 2016
Younger Millennials more invested in research, interactive shopping
Figure 49: Shopping behaviors –Agree, by older and younger Millennials, December 2016
Beauty enthusiasts are engaged shoppers
Figure 50: Shopping behaviors – Agree, by beauty segment, December 2016
Hispanics highly engaged in shopping for beauty
Figure 51: Shopping behaviors – Agree, by Hispanic origin, December 2016
PURCHASE DRIVERS
Samples, recommendations encourage Millennials to try something new
Figure 52: Purchase drivers – Any rank (net)*, by all women 18+ and Millennial women, December 2016
Online influencers more important to younger Millennials
Figure 53: Select purchase drivers, by older and younger Millennials, December 2016
YouTube drives purchases among Beauty Enthusiasts
Figure 54: Select purchase drivers, by beauty segment, December 2016
Social media inspires Hispanics’ beauty purchases
Figure 55: Select purchase drivers, by Hispanic origin, December 2016
ATTITUDES TOWARDS APPEARANCE
Natural looks resonate, but Millennials still want to look good
Figure 56: Attitudes toward appearance, by all women 18+ and Millennial women, December 2016
Older Millennials concerned about aging, younger Millennials focus on self-expression
Figure 57: Attitudes toward appearance, by older and younger Millennials, December 2016
Beauty Enthusiasts see their appearance as a big part of their identity
Figure 58: Select attitudes toward appearance, by beauty segments, December 2016
Natural look not resonating as much with Hispanics
Figure 59: Attitudes toward appearance, by Hispanic origin, December 2016
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations
APPENDIX – KEY INITIATIVES 
Figure 60: Base sizes for women aged 22-39 brand usage, April 2011-June 2016
Figure 61: Usage of facial cleansing brands among women aged 22-39, April 2011-June 2016
Figure 62: Usage of foundation/concealer brands among women aged 22-39, April 2011-June 2016
Figure 63: Usage of blusher/bronzer brands among women aged 22-39, April 2011-June 2016
Figure 64: Usage of eye make-up brand usage (net)* among women aged 22-39, April 2011-June 2016
Figure 65: Usage of mascara brands among women aged 22-39, April 2011-June 2016
Figure 66: Usage of lipstick & lip gloss brands among women aged 22-39, April 2011-June 2016
Figure 67: Usage of shampoo brands among women aged 22-39, April 2011-June 2016
Figure 68: Usage of hair conditioner brands among women aged 22-39, April 2011-June 2016
Figure 69: Usage of hairspray brands among women aged 22-39, April 2011-June 2016
Figure 70: Usage of hair styling product brands among women aged 22-39, April 2011-June 2016
Figure 71: Usage of nail polish and nail care brands among women aged 22-39, April 2011-June 2016
Figure 72: Usage of perfume brands among women aged 22-39, April 2011-June 2016
APPENDIX – CONSUMER 
Figure 73: Millennials’ generational perceptions, February 2016
Figure 74: Types of professional services used, by all women aged 18+ and women aged 22-39, April 2015-June 2016
Figure 75: Product usage, by women aged 22-39, April 2015-June 2016
Figure 76: Product usage, by all women, Millennials, younger and older Millennials, April 2015-June 2016
Figure 77: Millennial product usage, part 1, by race and Hispanic origin, April 2015-June 2016
Figure 78: Millennial product usage, part 2, by race and Hispanic origin, April 2015-June 2016