Gen Z is no longer sitting at the kid’s table. This (still young) generation is now a flourishing consumer force, and they’re spending money this holiday season—lots of it.
If your small business targets this market (or targets parents looking for gifts for their Gen Z kids), it’s essential to know what Gen Z wants.
There’s no better source for this than Casey Lewis, author of After School on Substack. Several years back, my niece Cassie told me to subscribe to this Substack blog, authored by Casey Lewis, who she met when they were both enrolled in a special journalism program.
A few weeks ago, in her special weekend post only for paying subscribers (called Sock Curls and Chill Guys, in case you want to subscribe), Lewis noted some products that were being scooped up by Gen Z, their families, and families with Gen Alphas.
Beauty is Booming
According to a report from Circana, from January through September 2024, the prestige beauty market in the U.S. grew by 7% to $22.8 billion, and mass-market beauty sales increased by 2% compared to 2023.
This year, Lewis says, 29% of U.S. holiday shoppers plan to purchase beauty products as gifts. And 41% of parents in higher-income households with children under 18” (Gen Alpha) expect to gift their kids with beauty products.
Circana also reports, “The prestige hair category continues to shine, with dollar sales up 8% through September and units also growing.” And since most sales in this category come via e-commerce, Circana says to “expect online to be a particularly lucrative destination for holiday gift shopping.”
According to Circana, the fastest-growing category in the beauty market is prestige fragrance, with year-over-year sales up 14% in dollars and 12% in units through September. Circana says the “Holiday season is expected to be especially important for the fragrance market. [And that] traditionally, the fourth quarter accounts for over 40% of annual sales.”
Thrifting for Gifts
Lewis also reports that “pre-owned gifts could be having a moment.” Apparently, she says, “giving secondhand items as gifts is no longer the taboo it once was,” largely due to Gen Z’s penchant for thrifting.
The idea is not new. Lewis says, “Secondhand marketplaces (like Mercari and ThredUp) have been trying to push the idea of pre-owned gifts for years,” but she attributes the “change in public perception” to Gen Z’s attitude.
Lewis cites a survey from secondhand marketplace Offerup that says, “83% of Gen Z are setting aside part of their holiday budget specifically for pre-owned items this year, compared to 68% of shoppers overall.” And 74% believe “secondhand gifting is more accepted this year,” up 7% increase from 2023, “and 83% of shoppers are comfortable receiving secondhand gifts and view them as ‘thoughtful and unique.’”
If your customers are Gen Z, I recommend you give yourself a gift this holiday season and subscribe to Lewis’s Substack.
I wrote more about holiday sales on AllBusiness.com.
Rieva Lesonsky is President of Small Business Currents, LLC, a content company focusing on small businesses and entrepreneurship. While you can still find her on Twitter @Rieva, you can also reach her @Rieva.bsky.social and LinkedIn.
Or email her at Rieva@SmallBusinessCurrents.com.
Gen Z shoppers picture by Ground Picture/Shutterstock
