Piper Sandler Companies Taking Stock With Teens’ 43rd biannual survey, which highlights trends in discretionary spending and brand preferences, found that overall teen spending increased 9% year-on-year and the “core beauty portfolio » had increased by 10% over one year.
The survey, in partnership with DECA, included 7,100 teens in 44 US states with an average age of 16.2. This year’s Spring 2022 survey was conducted from February 16 to March 22.
Women continue to lead growth not only in fashion spending (apparel +15%, footwear +16%), but also continue to lead the digital shift with 95% of high-income women shopping online vs. 91% men, according to survey data, found Piper Sandler.
The core beauty portfolio (cosmetics, skincare, fragrances) was $264/yr, up 10% YoY, led by fragrances (+33% YoY). Teenage girls’ daily use of makeup also continues to rise, according to survey data. Skincare held the highest spending priority in the beauty portfolio at $107, followed by cosmetics at $94 and hair care at $90.
In the survey, 60% of women said they read ingredients in beauty products. Additionally, 88% would pay more for “clean” and 58% would pay more for “backed by science.”
Olaplex was the preferred hair care brand for women with 11% market share and 15% market share among high-income women. elf became every teen’s favorite makeup brand for the first time, gaining 300 bps Y/Y and replacing Maybelline.
Ulta remained the No. 1 favorite beauty destination with 48% mind share (46% LY) while Sephora remained No. 2 and lost 400 basis points of share, Piper Sandler said.
According to the survey, GenZ is known to be a conscious generation, and teens this spring cited the Russian invasion of Ukraine as their top concern, pushing the environment to No. 2. gas prices emerged as the #4 concern, and when combined with inflation, would have been ranked #1.
“Teenagers continue to spend around four hours a day on social media as TikTok overtook Snapchat as the favorite social media platform for the first time. Although Amazon still remains the #1 website, it has seen mindshare slip Y/Y due to 1200 bps Y/Y drop in teenage mindshare Interestingly, 26% of teens own a virtual reality device, but only 17% use every week,” said Nicole Miller Regan, senior research analyst.