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The most lucrative trend in beauty: very good for the skin-care industry, very bad for young skin

The beauty business is aiming at Gen Z and Gen Alpha’s trillion-dollar spending power and thirst for glowy skin.

5/21/24 10:20AM

Nearly half of US tween girls use skin care and makeup, and many are getting advice from influencers on social media. That viral video influence has given rise to culty skin-care brands like Drunk Elephant, which have lured the Gen Z and Gen Alpha with ingredient-promoting products like D-Bronzi drops and Protini polypeptide creams. But beyond the cutesy pastel packaging and trendy multistep skin-care routines, experts say a lot of products beloved by the youth aren't made for them.  

“Younger consumer bases have become very excited about things like skin care, which may or may not be appropriate for their skin,” Amber Evans, who holds a doctorate in pharmaceutical sciences with a concentration in cosmetic science, told Sherwood News. She is chair of the New York Society of Cosmetic Chemists. 

“Kids want to play, so they use makeup that is not intended for them — it’s for adults.”

Teens are a crucial demographic for the beauty business, and the youngest consumers were the hottest topics at this year’s Suppliers’ Day in New York. It’s a major beauty event, and for good reason: Gen Z has around $450 billion in global spending power, and Gen Alpha is forecast to hit $5.5 trillion by 2029. Beauty is apparently already top of mind for many of them, with American teens spending 19% more on skin care last year than in 2022. 

While preventive skin care as a whole isn’t a bad thing, some teens are throwing too many unnecessary ingredients on their faces Antiaging ingredients like salicylic acid, retinols, and peptides have long been touted as treatments for fine lines and wrinkles on mature skin. But most young people don’t have wrinkles, and the potent ingredients can cause harm

During a panel discussion on branding to the future consumer, Karen Young, CEO and founder of the Young Group, said many teens are feeling pressured to use the products anyway. Young noted that while the younger generations have helped boost bottom lines for beauty retailers like Sephora and Ulta, there’s an importance in bridging the knowledge gap.

“It comes back to education,” she said, “teaching young kids and young consumers about sunscreen and not about scrubbing their face with a buff puff, and an alpha hydroxy acid, and then another salt scrub.” 

In fact, UV protection is more important than most people probably realize: the Environmental Protection Agency said sun damage causes up to 90% of all visible signs of aging, including wrinkles and leathery skin.

“Brands can just make any claims and you don't have to have any proof.”

To combat potential misinformation, Young said, the industry should stop leaving it up to influencers. Nearly half of US teens aged 12 to 17 are discovering beauty and personal care on products on social media, such as the get-ready-with-me (or #GRWM) trend on TikTok. Young also said the beauty industry should hold itself accountable to telling young consumers what’s actually good for their skin and what’s not. 

That said, the lack of ingredient awareness starts long before middle school. A 2023 survey conducted by Columbia University and nonprofit Earthjustice found that 80% of parents said their under-12 children were playing with makeup that was packaged as toys, though their ingredients were not meant for kids. The report went on to show how many “kids cosmetics” contain toxic chemicals like lead, formaldehyde, and even carcinogens such as asbestos. Now some parents are taking matters into their own hands. 

Last year, Thai-Ling Cahow launched Jovy, the first-ever EWG-certified kids’ makeup brand using ingredients like berries and natural oils from olives and avocados. The Environmental Working Group is a nonprofit research organization known for strict ingredient and transparency requirements for its “EWG-verified” trademark.

“I found that brands can just make any claims and you don't have to have any proof,” Cahow told Sherwood. “It doesn't have to be true.” Jovy’s website says that while the European Union has banned 1,400+ ingredients for cosmetic use, the US FDA has banned just 11. Even the FDA’s website says manufacturers can use and market “almost any raw material as a cosmetic ingredient” without approval.

“Kids want to play, so they use makeup that is not intended for them — it’s for adults.” Cahow said. “So there's a lot of ingredients that they shouldn’t be using.”

As kids’ and tweens' interest in skin care continues to pick up, more education could help make sure they're doing it right.

One solution Evans suggested is to rethink how we show skin-care results. Typically, before-and-after photos show how a product works as intended for its target age range. But Adams proposed adding a layer depicting the potential consequences if products are used too early.

“Perhaps the industry needs to get ahead of this and kind of put out communication saying that younger individuals don't need certain products,” Evans said. “Because what we see is, usually when consumers take control of things, it doesn't fare well for everyone.”

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Amazon is testing adding GM electric vans to its EV delivery fleet dominated by Rivian

Rivian may have some competition in its electric delivery van division: Bloomberg reports that Amazon is testing a small number of GM’s BrightDrop vans for its fleet.

According to Amazon, the test currently only includes a dozen of the vehicles. Amazon’s fleet also contains EVs from Ford, Stellantis, and Mercedes-Benz.

GM debuted BrightDrop in 2021, but the vehicles have struggled to sell and piled up on GM lots due to high prices and steep competition. GM began offering up to 40% rebates on the vehicles this year.

The test comes as Rivian struggles through tariffs and the end of EV tax credits. Earlier this year, it lowered its annual delivery outlook by about 13%. As of June, Amazon said it has more than 25,000 Rivian vans across the US. Earlier this week, Rivian CEO RJ Scaringe said the company is still on track to deliver 100,000 vans to Amazon by 2030 and is “thinking about what comes beyond” that initial target.

GM has sold 1,592 BrightDrop vans through the first half of the year, more than the full-year total it sold in 2024.

GM debuted BrightDrop in 2021, but the vehicles have struggled to sell and piled up on GM lots due to high prices and steep competition. GM began offering up to 40% rebates on the vehicles this year.

The test comes as Rivian struggles through tariffs and the end of EV tax credits. Earlier this year, it lowered its annual delivery outlook by about 13%. As of June, Amazon said it has more than 25,000 Rivian vans across the US. Earlier this week, Rivian CEO RJ Scaringe said the company is still on track to deliver 100,000 vans to Amazon by 2030 and is “thinking about what comes beyond” that initial target.

GM has sold 1,592 BrightDrop vans through the first half of the year, more than the full-year total it sold in 2024.

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Paramount Skydance reportedly preparing an Ellison-backed Warner Bros. Discovery takeover bid, sending shares soaring

Paramount Skydance is preparing a majority cash bid for Warner Bros. Discovery, The Wall Street Journal reported, sending shares of both companies surging. The Journal’s sources say the deal is backed by the Ellison family, led by David Ellison.

WBD shares were up 30% on the report, while Paramount Skydance jumped 8%.

The offer would cover WBD’s entire business — cable networks, movie studios, the whole enchilada. That comes after WBD announced plans last year to split into two divisions: one for streaming and studios, the other for its traditional cable and TV assets. A recent Wells Fargo note gave WBD a price target hike, primarily because the analysts viewed it as a prime takeover candidate.

If the deal goes through, it would bring together HBO, CNN, DC Studios, and Warner Bros.’ film library with Paramount+, Nickelodeon, and MTV, all under one umbrella.

The offer would cover WBD’s entire business — cable networks, movie studios, the whole enchilada. That comes after WBD announced plans last year to split into two divisions: one for streaming and studios, the other for its traditional cable and TV assets. A recent Wells Fargo note gave WBD a price target hike, primarily because the analysts viewed it as a prime takeover candidate.

If the deal goes through, it would bring together HBO, CNN, DC Studios, and Warner Bros.’ film library with Paramount+, Nickelodeon, and MTV, all under one umbrella.

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