There’s a dramatic shift in the beauty industry and Gen Z is leading the way, according to a new report by Gen Z Planet, a research and advisory firm. 

In particular, the report dubbed 'In the Eye of the Beholder', shows that Gen Z consumers view beauty as a means to self-expression and self-care. Contrary to previous generations, they take an "inside-out" instead of an "outside-in" view of beauty. 

Currently, 66% of the generation say they use skincare products every day and report an annual average spend of $290 on skincare and makeup. In terms of shopping preferences, Gen Z consumers love to shop in physical stores, but only 7% say they shop for beauty in department stores raising questions about the future of retail.

“Gen Z desires a new kind of beauty, one that is more authentic, inclusive, personalized, purposeful, affordable, and experiential, and brands have to work harder to meet these expectations,” said Hana Ben-Shabat, Gen Z Planet's founder, who led the study. 

"Gen Z not only changing the beauty game – they are completely rewriting its rules. To cater to this generation, brands will have to innovate on all fronts: product development, go-to-market strategies, marketing, and communication. Resonating with Gen Z means securing the customer of the future and being able to shape the future of the industry.”

The report, which is based on a survey of 1,178 teen and young women ages 16-24, highlights the brands that are getting it right: CeraVe tops the list of Gen Z favorite brands for skincare.