How Gen Z engaged with beauty content in Q3: Sephora wins while legacy brands struggle

Sephora-related content resonated best with Gen Z consumers, but legacy brands like Neutrogena struggled to maintain relevance. Cultural moments like Pride and back-to-school drove Q3 UGC, while video tutorials on platforms like TikTok provide more effective ways for brands to connect with Gen Z.

Here are four insights into how beauty brand-related, UGC performed among Gen Z consumers in Q3, according to research firm dcdx’s Gen Z's Top 50 Beauty Brands Report Q3 2024.

1. Sephora claims the top spot

Sephora-related UGC saw the highest and most consistent engagement with Gen Z consumers in Q3, scoring an 85.24 out of 100 on dcdx’s Gen Z Score ranking.

Charlotte Tilbury (82.24), Rare Beauty (79.78), Dior (78.96), Maybelline (75.46), and e.l.f. Cosmetics (75.44) rounded out the top six brands, which drove 25% of Gen Z engagement with beauty brand-related UGC in Q3.

Our view: While Gen Z is a valuable demographic for beauty retailers, Sephora can’t lose sight of older consumers. That’s why it recently added a new luxury beauty brand to its product portfolio. Sarah Creal, founded by the former CEO and co-founder of Victoria Beckham Beauty, is aimed at consumers over the age of 40, the first Gen X-specific line to launch at Sephora.

2. Legacy brands are losing relevance

Brands with a wider audience base, like Neutrogena and Cetaphil, are seeing less engagement from Gen Z consumers, per dcdx’s report. This could be due to many reasons—some brands may find it hard to keep up with the fast-paced nature of beauty trends, while others may struggle to engage with more niche or targeted audiences.

Our view: Legacy brands can more effectively connect with younger consumers by leveraging the trends and platforms they care about.

• To capitalize on younger consumers’ desire for skincare products, Neutrogena launched Collagen Bank, a skincare line for Gen Z consumers.
• Collagen Bank will launch directly on TikTok Shop, a smart move considering the role the platform plays in product discovery.
• This is the brand’s biggest launch in 10 years and a “top priority,” vice president Marguerite Longo told The Business of Fashion.

3. Pride, back-to-school drive interest in beauty

Cultural moments, like Pride and back-to-school season, boosted engagement rates for beauty-related UGC in Q3 as Gen Zers showed off their parade outfits or back-to-school hauls. Q3 2024 marked the highest engagement levels for back-to-school content to date, per the report.

Our view: Back-to-school may be the biggest retail holiday in Q3, but Pride presents a major opportunity for brands.

• Over a fifth (22.3%) of Gen Z adults identify as LGBTQ+, the highest rate of any other generation, per data from Gallup.
• However, brands should avoid using Pride as a once-a-year way to connect with LGBTQ+ consumers.
• While 63% of LGBTQ+ adults say they don’t see their lifestyle represented enough in advertising, per April 2024 data from YouGov, the same percentage say advertising that only happens during or around Pride Month seems insincere, per July 2023 data from Collage Group.

4. Tutorials and trends are the most popular form of UGC

Over a quarter (25.1%) of UGC related to beauty brands in Q3 were tutorials and trends, the largest share of any content type, according to the report.

• Lifestyle content, which focuses on sharing everyday moments rather than reviewing or educating viewers, was the second most popular type of UGC (20.3%), followed by get ready with me content (15.9%).
• Product reviews were the least popular type of UGC in Q3.

Our view: Video, particularly on social platforms like TikTok, is essential to engaging Gen Z consumers.

• Watching video is the No.1 way Gen Z typically discovers new brands and products across all categories, according to a June 2024 EMARKETER survey.
• TikTok is Gen Z’s top platform for researching and evaluating brands/products, followed by Instagram, YouTube, and Facebook.
• Over a fifth (22%) of small business owners said TikTok video tutorials outperformed traditional search engine results pages, according to January 2024 Adobe data.

This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.