An influx of preteens and teens buying beauty has been the cherry on top for an already bustling shopping season, one with sales gains superseding other categories during the last week of 2023.

Brands including Rare Beauty, CeraVe, Drunk Elephant, Bubble Skincare, Glow Recipe, and, of course, Taylor Swift, have made some of the biggest inroads with beauty’s hottest demographic.

At a Kohl’s/Sephora located in Hillsborough, New Jersey, one beauty sales associate said she spent the days before and after Christmas guiding younger customers towards skin care, a huge shopping trend she noticed this season. “We were swamped with kids cashing in gift cards. Their parents don’t know the brands [they’re interested in], so they give them gift cards so they can shop for what they want.”

Demand for beauty products by teens is growing at an unprecedented rate. Piper Sandler’s 46^th semi-annual report on teen preferences validated the interest spike: teens said they spent $324 per year on beauty, up 33% over 2022. They also tend to favor prestige products, citing Sephora as their preferred shopping outlet.

Fueling this desire is TikTok, where the tween and teen crowd goes to learn about the latest regimens and must-have beauty items. Drunk Elephant is one of the most cited brands used by younger fans, so much so that on December 8, the company, owned by Shiseido, used social media to communicate to concerned parents that “many of our products are designed for all skin, including kids and teens.”

Teens were just one of the catalysts for beauty sales growth over the holiday season. Shoppers of all ages flocked to beauty inspired not just by social media, but also by the immediate gratification derived from buying a new lip stain, highlighter, or tinted moisturizer.  Interviews with retailers and brands estimate that beauty sales will exceed a 9% gain over 2023, exceeding overall growth across the board.

Supporting this is the Mastercard SpendingPulse, which gathers intel from transactions registered in stores and online. The latest data showed that U.S. spending for the period from November 1 through December 24 increased 3.1%, including sales at restaurants. That was in the same range as the National Retail Federation’s post-Black Friday forecast of a 3% to 4% spending rise versus 2022 to between $957.3 billion and $966.6 billion.

“Retailers started promotions early this season, giving consumers time to hunt for the best deals and promotions,” said Steve Sadove, Senior Advisor for Mastercard, and former CEO and Chairman of Saks Incorporated. But it wasn’t only about deals, he added, noting that spending trends “resurfaced” mirroring those from before the pandemic.

One of the biggest sales days was the Saturday before Christmas. Customer Growth Partners described Super Saturday as “stunning”, adding that the day hit $47 billion in sales, well ahead of the $42.6 billion in sales on Black Friday. CGP’s calculations draw on a nationwide survey sample size of 11,586 shoppers across all retail sectors except autos/parts, restaurants, and gasoline.

A half dozen holiday store visits to various beauty meccas across South Florida and New Jersey showed that the “treat mentality” remains strong, and beauty is a go-to category. On the day after Christmas, foot traffic at an Ulta Beauty store located in Princeton, N.J. was heavy, likely boosted by the retailer’s gift-with-purchase (a plush bathrobe or blanket) for those spending $70 or more on fragrance. On the same day, a Sephora store in the Palm Beach Gardens Mall in Palm Beach Gardens, Florida had a checkout line that was 35 people deep, where the launch of Selena Gomez’s Rare Beauty body range caused major crowds. On the lower level of that mall, customers jostled for positions to nab merchandise during Bath & Body Works’ legendary post-Christmas promotion. Sales were also buzzing online, with one consumer reporting she spent $350 on Bath & Body Works items discounted 50% to 75% off retail prices.

A sweep of store shelves revealed several big beauty shopping trends that look to set the stage for 2024. 

• Hair care made popular gift items. Interest in luxury hair care is at an all-time high, according to Circana data, driven by double-digit growth in most care and styling segments.
• Mass market makeup reigns supreme. One Target store based in Clark, New Jersey, showed shoppers are hot for innovation at lower prices with brands such as Makeup Revolution, E.l.f. Cosmetics, and NYX selling best.
• Minis and trial sizes are gaining ground. A Sephora floor stand in a high-traffic aisle at Kohl’s in Hillsborough, New Jersey was wiped clean of minis by brands such as Paula’s Choice and Youth to the People.
• Fragrances are causing a frenzy. According to Circana, fragrance sales were brisk out of the gate for the fourth quarter of 2023, up 12% through December 2 and almost on par with total fourth-quarter sales generated last year.