Ulta Beauty Bets on Gen Alpha With AI, In-Store Experience, and Parent Trust

Quick Facts

Ulta Beauty partnered with NielsenIQ to survey more than 500 U.S. children and teens ages 8 to 17, plus their parents, in April and May 2026.
73% of Gen Alpha beauty consumers already use personalization tools while shopping, and AI users visit stores at higher rates than non-users (57% vs. 36%).
55% of Gen Alpha respondents say they learn about beauty from parents, outranking social media (51%) as an influence on purchasing decisions.

Ulta Beauty is making a direct play for Gen Alpha, the cohort born between 2010 and 2024. The company commissioned a custom study with consumer intelligence firm NielsenIQ, surveying more than 500 U.S.-based children and teens ages 8 to 17, alongside their parents, during April and May 2026. The resulting report, titled ‘Smart Beauty: AI, Personalization and the Gen Alpha Consumer,’ outlines how this generation discovers, shops, and thinks about beauty products.

‘Our Smart Beauty research shows that Gen Alpha is embracing AI and personalization in ways that are fundamentally changing how beauty and wellness is discovered and shopped, while still valuing the importance of physical stores and real-world experiences,’ said Kelly Mahoney, Chief Marketing Officer at Ulta Beauty.

A Hybrid Shopping Generation

Despite being digitally native, Gen Alpha leans on both online and offline channels nearly equally. According to the survey, 78% discover beauty products through at least one online source. But 77% rely on real-world validation, including store visits and peer conversations.

In-store preference remains strong across categories: 73% prefer buying fragrance in physical stores, 70% prefer in-store for makeup, and 66% for skincare, hair, and nails. Ulta calls Gen Alpha the first ‘hybrid shopping generation.’

AI Is Driving Store Traffic, Not Replacing It

Nearly three-quarters of Gen Alpha beauty consumers, 73%, already use personalization tools. They turn to tailored product recommendations (35%), AI-powered search (31%), and interest-based content suggestions (29%). The top reason cited: discovering new products (53%).

Teen boys are leading AI adoption within the cohort. Twenty-six percent use AI shopping assistants, nearly double the rate of other Gen Alpha segments at roughly 15%. Gen Alpha consumers who use AI tools visit stores to browse and try products at a rate of 57%, compared to 36% for non-users.

‘What stands out in these findings is the clear convergence of digital and physical behaviors,’ said Jacqueline Flam, Managing Director of Beauty and Health at NielsenIQ. ‘Gen Alpha is highly fluent in AI and personalization, but they are using these tools to enhance discovery and build confidence, not to replace in-store experiences.’

Parents Are the Real Power in the Purchase

The survey identifies parents as the dominant influence on Gen Alpha beauty purchases. Fifty-five percent of respondents say they learn about beauty and personal care from their parents, ahead of peers (52%) and social media (51%). Parents rank as the single most helpful beauty influence for Gen Alpha at 41%, outpacing social media at 34% and friends at 29%.

Ninety-eight percent of Gen Alpha parents report playing an active role in what products are purchased. Anna Mayo, VP of Beauty at NielsenIQ, noted the relationship runs both directions: ‘We definitely see a lot of cross-influence, where kids are influencing the parents and parents are influencing the kids. They’re shopping together, and they’re trying to understand these categories together.’

One-third of parents say the most important way a retailer can earn trust is by creating safe, welcoming environments, including age-appropriate product assortments, clear ingredient labeling, and knowledgeable store associates.

What Ulta Plans to Do With the Data

Ulta is responding with a strategy centered on responsible innovation. The company has active AI partnerships with Adobe and Google. It is also expanding education-focused in-store programming, including birthday events for younger guests and their families, and investing in associate training to guide age-appropriate product selection.

The stakes are real. Sephora dethroned Ulta as Gen Z’s top beauty retailer in 2023, capturing 37% of share to Ulta’s 32%, according to Piper Sandler’s Taking Stock With Teens survey. Gen Alpha represents the next battleground.

‘This particular cohort should be important to everybody,’ Mahoney said. ‘What makes us so distinct in this is we have such a right to provide that trusted beauty and wellness authority. I’m really optimistic about the future for us, and we take it on with great responsibility.’