New data reveals key factors driving Gen Z purchasing decisions

Gen Z is rapidly emerging as one of the most influential demographics, with their evolving preferences making them a challenging yet critical target for beauty brands and retailers.

It comes as this digitally savvy generation are responsible for 35% of total website traffic and driving an 85% engagement rate, with a 40% higher purchase and add-to-cart rate than other demographics.

In a new report, Revieve explores Gen Z's skincare habits, regional trends, and emerging product preferences, offering insights to help businesses attract and retain this audience.

TheIndustry.beauty summarises the key findings...

Social commerce

Having grown up in a digital-first world, Gen Z consumers are highly receptive to visual and interactive content.

Social media plays an important role in the discovery of skincare products, with 58% buying directly from TikTok and Instagram, favouring influencer recommendations over traditional ads. In addition, half of the Gen Z population makes skincare purchases based on social media trends.

Tech powered experiences

This generation is also engaging in selfie-based digital experiences, 13% more than other demographics, at 58%. It comes as AR and AI-powered activations continue to capture consumer attention, with brands reporting 30% higher engagement rates from using these platforms.

Revieve shares that brands should leverage AI and AR - from skincare analysis to makeup try-ons - to offer a personalised and unique retail experience for shoppers.

Clean, transparent beauty

The research shows Gen Z are driving the industry towards clean beauty products, with 81% noting that ingredient transparency influences their purchasing decisions.

In addition, 81% of this demographic are opting for fragrance-free skincare and 33% are preferring paraben-free formulations - a clear response to growing concerns over sensitivity and irritation, as the tech company suggests "clean beauty isn’t just a preference, it’s a non-negotiable".

Multifunctional beauty products

Gen Z also values simplified routines with products that combine acne treatment, hydration and pore care. In fact, 72% of consumers are ditching cluttered routines for multi-use, science-backed skincare, according to the new data.

There's also a growing interest in skin microbiome health, leading to increased demand for probiotic and barrier-supporting skincare. As a result, Revieve encourages brands and retailers to invest in multitasking formulations and highlight their effectiveness in targeted digital messaging.

Sampo Parkkinen, CEO at Revieve, said: "Gen Z are setting new industry standards. They expect brands to speak their language, integrate tech-driven experiences, and align with their values of sustainability and inclusivity."

Other findings include:

• It's important to offer affordable skincare while positioning premium offerings in high-value markets.
• Exclusive product drops and limited-edition collaborations appeal to Gen Z's desire for uniqueness.
• Localised campaigns resonate better with different regional Gen Z audiences.
• While AI-powered customer service is widely accepted by Gen Z, many still prefer human interaction for complex issues, suggesting a need for a balanced approach in customer support.