Quick Facts

• CoverGirl shifted strategy from Gen Z to Gen X targeting after Coty reported 1% revenue decline to $1.28 billion
• Gen X households account for 44% of total beauty spending but 39% feel brands don’t cater to their age group
• Gen Z beauty e-commerce share grew to 31% with average annual spend of $1,320 per consumer

CoverGirl abandoned its Gen Z strategy to focus on Gen X consumers after parent company Coty reported declining revenues. Coty interim CEO Markus Strobel announced the strategic shift during the company’s Q3 2026 earnings call.

“I think, at one point in time, we tried to turn CoverGirl into the ultimate Gen Z brand,” Strobel said. The pivot comes as Coty reported a 1% decline in net revenue to $1.28 billion for the quarter, with Consumer Beauty net revenue decreasing 4% to $450.7 million.

Market research firm Circana found that Gen X households account for 44% of total beauty spending, with skincare as their top category. Despite this spending power, 39% of Gen X consumers in the UK disagree that beauty brands cater effectively to their age group.

The Forgotten Generation’s Market Power

Gen X, born between 1965 and 1980, represents 25% of the beauty category’s total $1.5 trillion spend in 2025. CoverGirl now focuses on core franchises like Simply Ageless and Lash Blast to reach these consumers.

Meanwhile, Gen Z’s share of U.S. beauty e-commerce spending grew to 31% from 24% in 2024. Gen Z consumers spend an average of $1,320 annually on beauty products, representing a 19% year-over-year increase.

Generational Marketing Challenges

Beauty brands face distinct generational priorities. Gen Z champions mental well-being and sustainability. Millennials prioritize convenience and functional benefits. Boomers focus on health-driven purchases with proven efficacy.

Inclusivity expectations also vary by generation. Gen Z and Millennials expect expansive shade ranges and gender-inclusive lines. Gen X and Boomers prioritize age diversity and realistic representation without excessive retouching.

P&G’s Olay has invested in breakthrough technologies, including proprietary Facial Cleansing Technology backed by over 50 patents. The brand launched OLAY Super Serum featuring activated niacinamide, building on the company’s leadership in niacinamide research.

Market Dynamics

Inflationary pressures keep shoppers price-sensitive. Consumers prioritize perceived value over brand loyalty, driving the rise of affordable “dupes” in beauty and fashion.

E-commerce platforms now capture 41% of all beauty and personal care sales as of H1 2024. The personalized beauty market will exceed $51 billion by 2026, with 75% of consumers willing to pay more for personalized experiences.

By 2034, Millennials will overtake Gen X and account for 24% of global beauty market spending, totaling $193 billion.

Read more: Can a Beauty Brand Stretch From Gen X to Z?