Why This One Category is Winning Over Gen Z's Wallets Like Never Before

The line of people standing in front of the main entrance of the Stoneridge Shopping Center (a local mall here in the Bay Area) on this particular warm and sunny afternoon was longer than any I had ever seen awaiting to enter a retail space in person.

To say that the place was packed, would be a huge understatement. If I had to estimate—I’d say on this day there were at least 1,000 people standing in line; most of them being teenage girls.

Walking towards the main entrance after parking my car, my mind began to wonder just what type of event was taking place inside that I hadn’t been privy to prior to arriving.

As I approached the long line of people (who were blocking the main entrance to the mall), I asked a young lady (who had to be no older than 19 years of age and was standing in line with who I’d assume was her mother) just what was all the hoopla was about that had so many people eagerly awaiting to enter the mall.

Although the young lady’s reply left me surprised, and I must confess—a little embarrassed; her answer would go on to help teach me a very valuable lesson on Gen Z’s absolute obsession as it pertains to one particular category.

What’s the category?

What the young lady told me that afternoon, which left me surprised, embarrassed, and also explained why so many people were gathered at the suburban mall waiting in line in the middle of the day—could be described with one word—influencer.

We’re here to see Bethany Mota. She’s having a meet and greet at Aeropostale. The young lady replied. As I nodded and thanked her, I’m quite certain that the confused look on my face clearly conveyed to her that I had absolutely no clue of who Bethany Mota was.

In which she’d be totally correct.

Embarrassed by not knowing who someone was that easily had more fans waiting in line to take a picture with her than many of my favorite rap artists could likely muster at the time—I quickly Googled Bethany Mota.

What I discovered was that she was a teenage influencer/YouTube sensation who had risen to fame by making vlogs of her fashion and beauty accessory hauls.

Now, if you’re wondering what this story (which took place some 10 years ago) has to do with the title of this article—it’s simple; along with fashion and style, Bethany Mota became one of the first superstar teen influencers mostly by focusing her content on a category that Gen Zers are totally obsessed with at the moment—beauty.

Some cool stats

According to Piper-Sandler’s spring 2025 Taking Stock With Teens® survey, teens' core beauty wallet jumped 10% year-over-year to its highest level ever, totaling a record $374.

Here are a few more stats the survey revealed regarding the beauty category:

Fragrance was discovered to be the fastest growing category. Which is up 22% compared to 2024’s findings.

38% of the respondents selected Sephora as their top destination to purchase beauty products.

e.l.f Cosmetics remains the NO. 1 cosmetics brand amongst teen females.

57% of teens surveyed have a negative outlook on economic trends.

Let’s take a second and focus on that last statistic. Despite over half of teens having a negative outlook on the economy—they’re widening their wallets to purchase beauty products at record numbers. Why, you ask? Well, this answer is also quite simple.

What has Gen Zers spending at such a record pace?

Adulation, validation, and vanity. You’d be very hard-pressed to find three words that could better describe the absolute stronghold social that media has on today’s youth. Although generations that preceded them also have a yearning for adulation, seek validation, and let’s be honest—are somewhat vain; it definitely hits differently for Gen Zers.

Unlike older generations, for pretty much their entire lives, social media has played a central role in the way Gen Zers communicate with their peers.

The reason why Gen Zers are purchasing beauty products at record numbers despite having an uncertain outlook on their economic futures is the same reason why the use of photo editors and filters are so popular on Instagram, Snapchat, and TikTok—beauty products make Gen Zers feel more attractive. Which in turn, makes them feel better about themselves in a social media-driven era that is totally focused on appearances.

Beauty products ultimately address Gen Z's yearning for adulation, validation, while also indulging their vanity. Something that, as previously mentioned, provides the same elements that make social media so addictive to the demographic in the first place.

Key takeaways for your brand

Rasheed Ogunlaru, author of the book, Soul Trader: Putting the Heart Back Into Your Business, says that, “Until you understand your customers - deeply and genuinely - you cannot truly serve them.”

If serving Gen Z consumers is one of your brand’s primary goals, deeply and genuinely understanding not only their actions—but also, the underlying factors that influence those actions are paramount.

By understanding what Gen Zers are spending their money on and why—it makes it that much easier for your brand to successfully market towards the demographic moving forward.

Speaking of marketing, if you’d like a marketing firm to devise a customized marketing strategy that is sure to help make your brand become more appealing to Gen Z consumers, contact us at Decryption immediately to schedule a complementary client consultation.