Embracing diversity

Younger generations in the United States are more ethnically diverse than ever before. Gen Z will be the last generation where the majority (51%) identifies as non-Hispanic white. Beauty is an important category for Black and Hispanic shoppers. Hispanics make up 14% of beauty households, but spend over 16% of the category dollars. Similarly, Black consumers represent 16% of fragrance households, but account for 22% of category dollars. Indeed, L’Oréal recently called out the increased penetration of fragrances in Hispanic and African American populations as a driver of growth for the category in 2023. Catering to the needs of these consumers is key to ensure future brand success. Beiersdorf, for example, has focused recent innovation on hyper-pigmentation, which tends to have a greater effect on melanin-rich skin.

Source: Annie E. Casey Foundation (2023).