Ulta Beauty Launches NielsenIQ Study on Gen Alpha and AI-Powered Beauty Discovery

Ulta Beauty, Inc. has unveiled findings from a new Ulta Beauty-commissioned study conducted by NielsenIQ called, “Smart Beauty: AI, Personalization & the Gen Alpha Consumer.”

The study explores how Gen Alpha consumers are navigating beauty and wellness in an increasingly AI-driven world. The study underscores Ulta Beauty’s commitment to understanding and evolving alongside the next generation, as well as building beauty and wellness experiences that are personalized, empowering, responsible and rooted in trust.

“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. “What’s especially powerful is that technology is fueling more exploration and engagement with the category, making discovery faster, more relevant and more inspiring for Gen Alpha consumers.”

Gen Alpha Values In-Person Experiences

The Smart Beauty study reveals a generation embracing technology while still valuing in-person experiences and trusted guidance – challenging assumptions about what it means to be digital and AI natives.

According to the study, while 78% of Gen Alpha consumers discover beauty products through at least one online source, nearly as many (77%) then seek real-world validation, including visiting stores to try products in person (37%), asking family or friends how to use products (37%) and discussing products with peers (36%).

Despite being digital natives, most Gen Alpha consumers still prefer shopping for beauty products in-store, including 73% of fragrance users, 70% of makeup users, 66% of skincare users, 66% of hair care users and 66% of nail care users. The top reasons: being able to take products home immediately (43-51% across categories) and discovering or exploring new products in person (33-49% across categories).

The study also found that Gen Alpha consumers who use AI tools are significantly more likely to visit stores to browse and try products in person than non-AI users (57% versus 36%), revealing that technology is amplifying discovery rather than replacing physical retail.

Nearly three-quarters (73%) of Gen Alpha beauty consumers already use personalization tools while shopping for beauty products, turning to tailored product recommendations (35%), AI-powered search results (31%) and interest-based content suggestions (29%). The top reasons for using these tools include discovering new products (53%), trying something new (45% overall; 54% among teen girls) and learning how to use products (42% overall; 49% among nail care users).

Interestingly, teen boys are leading Gen Alpha’s adoption of AI-powered beauty tools, with 26% using AI shopping assistants – nearly double the rate of other Gen Alpha groups (roughly 15%). Compared to pre-teen boys, they are also more likely to be aware of (84% versus 72%) and use (79% versus 65%) personalization tools, underscoring their comfort with customized beauty experiences.

Compared to non-users, Gen Alpha consumers who use AI shopping assistants are significantly more likely to say personalization makes beauty feel more relevant (44% versus 24%), more fun and engaging (42% versus 27%) and more efficient by helping save time while shopping and exploring products (42% versus 29%). They are also more likely to trust recommendations when they understand why products are being suggested (38% versus 23%).

Parents Seek Transparency

Analysts say Gen Alpha parents remain highly involved in beauty purchasing decisions, with 98% saying they play an active role in what beauty and personal care products are purchased. They are also the single most helpful beauty influence for Gen Alpha (41%), outranking social media (34%) and friends (29%). For retailers, trust starts with safety and guidance: one-third of parents and guardians (33%) say the most important way to build trust is by creating safe, welcoming environments for Gen Alpha, including age-appropriate assortments, clear ingredient labeling and knowledgeable in-store associate guidance.

“What stands out in these findings is the clear convergence of digital and physical behaviors,” said Jacqueline Flam, managing director, beauty & health at NIQ. “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. For brands and retailers, this means creating connected journeys that link digital influence with real-world engagement.”