Diversity and inclusion have become critical factors in the beauty and personal care industry, influencing both brand loyalty and consumer spending. Research from predictive audience data and insight platform Skydeo shows that 77% of consumers aged 13 to 39 consider diversity an important factor in their purchasing decisions, with inclusive beauty brands growing at a significantly faster rate than their competitors.
However, recent pullbacks on corporate DEI initiatives have raised questions about how consumer behavior is shifting in response. Are consumers adjusting their brand preferences based on diversity commitments? How are multicultural demographics shaping market growth? And what strategies are proving most effective for brands seeking to engage diverse audiences authentically?
To explore these questions, we spoke with Mike Ford, Skydeo CEO, for his data-driven perspective on how inclusivity influences brand performance and why diversity in beauty is not just a social issue but a business imperative.
CDU: With 77% of 13-39-year-olds prioritizing diversity in their purchasing decisions, how have you seen this preference impact brand loyalty and consumer spending in the cosmetics and personal care industry?
Mike Ford (MF): Diversity isn’t just a trend—it’s a core expectation for younger consumers. Brands that prioritize inclusivity are winning in both loyalty and lifetime value.
Consumers, especially Gen Z and younger millennials, don’t just want diversity—they expect it. And they reward brands that get it right.
Plain and simple—if you’re not prioritizing diversity, you’re leaving money on the table. Inclusive beauty brands are growing about one-and-a-half times faster than less inclusive competitors.
Why? Because representation isn’t just a moral move – it’s a market demand. Brands that authentically embrace diversity enjoy stronger brand differentiation, higher loyalty, and increased sales.
Consumers reward them with repeat purchases and fierce loyalty. The message is loud and clear: if you make everyone feel seen, they’ll stick with you and spend more. Brands that truly embrace inclusivity win big. Look at Fenty Beauty—launched with 40+ foundation shades, and boom—$100M in sales in its first year.
The story wasn’t just about product quality—it was about showing up authentically for underrepresented consumers. It’s why they forced brands like Estée Lauder, L’Oréal, and CoverGirl to expand their shade ranges.
Representation isn’t just in the ads—it’s in the products. It’s not enough to throw diverse models in a campaign. Consumers want shade ranges that match their skin tones, formulas that fit their hair types, and products that speak to their culture.
CDU: In light of recent pullbacks on DEI programs across industries, have you observed any shifts in consumer behavior when it comes to supporting brands that maintain a strong commitment to diversity?
MF: Oh, absolutely. Consumers see everything. What if a brand was all-in on DEI last year and suddenly goes quiet? People notice.
Consumers are calling out brands that retreat. We’ve seen brands get hit HARD for quietly dropping DEI commitments. It’s not a good look when your “commitment to diversity” disappears when the conversation gets tough.
One-third of all consumers have stopped or reduced purchases from brands that pulled back on DEI. Among Black and Hispanic consumers, 45% have cut back, and for LGBTQ+ consumers, that jumps to 58%.
That’s a massive shift in buying behavior. On the flip side, people are actively supporting the brands holding the line on diversity. Over half of Black (55%) and Hispanic (54%) consumers – and 73% of LGBTQ+ consumers – say they’re more likely to purchase from brands that support diversity and inclusion.
They’re even doing their homework: about four in ten Black consumers (and 54% of LGBTQ+ consumers) actively check a brand’s DEI practices before buying.
People are moving their money. Consumers are actively choosing brands that stand by their values—and they’re quick to drop those that don’t.
“Performative” doesn’t cut it anymore. It’s not just about having a Pride Month campaign or a Black History Month post—it’s about real, consistent action. The message is clear: this isn’t a marketing strategy—it’s a business strategy. The brands that stand by DEI—even when it’s not easy—are the ones earning trust and long-term loyalty.
CDU: What are some key data-driven insights from Skydeo that highlight where and how diverse consumer demographics are directing their buying power today?
MF: Multicultural consumers are driving beauty trends—period. They are the growth engine of the beauty and personal care market. Inclusivity isn’t a “niche” play—it’s where the biggest opportunities are.
Over 65% of all spending growth now comes from multicultural consumers – they’re driving the industry forward. Latino and Black consumers are outpacing the general market in beauty spending.
Take Hispanic Americans: their buying power surged +320% in five years to reach $2.8 trillion by 2026. In beauty, they are major spenders – Hispanic consumers spent 19% more than the average consumer on beauty in 2022.
Black consumers are also flexing their economic muscle, with buying power doubling to $2.1 trillion by 2026. In the beauty sector, spending by Black consumers jumped 10% last year, including a 32% spike in fragrance purchases – a clear sign that this demographic is investing more in personal care categories once not catered to them.
Asian American consumers are leading in luxury skincare and ingredient-conscious products. They want science-backed formulations and clean beauty.
Gen Z Hispanic and Black consumers over-index on brands that partner with diverse influencers. They buy from brands that reflect their communities. In short, diverse demographics are channeling their buying power toward brands and products that reflect their needs and identity.
Brands that recognize where this spending is going – and adapt to serve these communities – are capturing serious growth, while those clinging to one-size-fits-all approaches are being left behind.
CDU: From a marketing and brand-building perspective, what are the biggest risks for beauty and personal care companies that fail to embrace multicultural consumerism?
MF: If your brand ignores diversity, you’re not just missing a few sales—you’re setting yourself up for failure. Failing to embrace multicultural consumerism isn’t a passive miss – it’s an active risk of becoming the next cautionary tale, losing market share, and watching your brand equity crumble.
The risks are clear:
- Losing relevance: Younger consumers are multicultural. If your brand doesn’t reflect them, you’re invisible. 45% of Gen Z and 50% of millennials say they would stop using a beauty brand if it lacked inclusivity or social responsibility.
- Getting called out: Consumers call out brands that fail at representation—or worse, try to fake it. One bad PR moment can kill years of brand equity. Remember Tarte’s foundation fiasco? They launched a limited shade range, and the internet roasted them for it; one customer literally said, “I won’t support a brand which thinks one deeper foundation color amounts to diversity.”
- Handing your market share to competitors: There are billions in buying power in multicultural consumer groups. If you’re not speaking to them, someone else will—and they’ll take your customers with them.
- Recruiting top talent: If your internal team isn’t diverse, your marketing won’t be either. And if you’re not hiring inclusively, you’ll have a hard time attracting Gen Z talent.
CDU: How can brands effectively communicate their commitment to diversity and inclusion in an authentic way that resonates with consumers rather than appearing performative?
MF: If your strategy starts and ends with a one-month ad campaign, you’re doing it wrong. Consumers can smell fake activism a mile away. They don’t just want brands to talk about diversity. They want brands that live it.
Here’s how to do it right:
- Be consistent: DEI isn’t a one-off campaign—it’s part of your brand identity. Show up every day, not just when it’s trending.
- Make it a conversation: Authenticity means listening. Create forums for customers to voice feedback and show that you’re acting on it. If you misstep, own it. A sincere apology and corrective action go a long way.
- Put real money behind it: Support Black-owned, Latino-owned, and LGBTQ+ creators, suppliers, and communities. Partner with them long-term, not just for PR.
- Show your receipts: Consumers want proof. Who’s on your leadership team? Where are your supply chains? If you claim inclusivity, back it up.
Who did it right?
- Fenty Beauty – Pro Filt’r Foundation: Fenty Beauty, founded by Rihanna, launched with 40 foundation shades (now expanded to 50+), instantly setting a new standard for inclusivity in beauty. This wasn’t just marketing—this was a product designed for every skin tone, especially those overlooked by legacy brands.
- Dove – “Real Beauty” Campaign: Dove was one of the first major personal care brands to challenge unrealistic beauty standards by featuring real women of different body types, ages, and ethnicities in their ads. This wasn’t just a one-off campaign—it became the DNA of the brand.
- e.l.f. Cosmetics – #EyesLipsFace TikTok Campaign: e.l.f. became the first beauty brand to dominate TikTok by creating a custom song (“Eyes, Lips, Face”) and turning it into a viral movement. Instead of traditional ads, they let real users and influencers drive the campaign—creating over five million user-generated videos and racking up eight billion views.
- SheaMoisture “It Comes Naturally” Campaign: SheaMoisture has always been a leader in Black hair care, but in 2020, they doubled down with “It Comes Naturally,” a campaign celebrating Black culture, entrepreneurship, and beauty while investing in Black-owned businesses.
- Rare Beauty: Selena Gomez’s Rare Beauty isn’t just another celeb brand—it’s a movement around mental health.
- UOMA Beauty “Say What?! Foundation”: Founded by Nigerian-born Sharon Chuter, the brand didn’t just launch with a diverse foundation range—they made diversity the entire brand DNA.
- Glow Recipe – Clean Beauty & K-Beauty Crossover: Glow Recipe took Korean beauty (K-beauty) trends mainstream while focusing on clean, fruit-powered skincare that resonates with ingredient-conscious Gen Z consumers. Their Watermelon Glow Niacinamide Dew Drops became a best-seller thanks to TikTok virality and influencer buzz.
CDU: What strategies have you seen successfully encourage consumers to “buy in” on brands that align with their values, and how can personal care and beauty companies apply these strategies to drive growth?
MF: The biggest opportunity in beauty right now? Being the brand that truly understands and serves multicultural consumers. That’s where the next billion-dollar brands are being built. At the end of the day, consumers buy from brands that “get them.” And the brands that do it best?
They do three things exceptionally well:
- They use the right voices: Influencer marketing isn’t just about reach—it’s about relevance. Gen Z trusts creators more than brands. If you want diverse consumers to buy, they need to hear it from people they relate to. So collab with real community leaders, not just the biggest names.
- They make inclusivity the core of their product, not just their ads: Brands that actually develop products for diverse consumers (not just market to them) win loyalty for life. Fenty didn’t just launch inclusive shades—they built a brand around it.
- They take a stand AND back it up: Your brand has a voice, use it. Look at Nike’s Colin Kaepernick campaign – they knew their younger audience cared about racial justice, and they went all-in on that message. The result? 56% of viewers said they were more likely to buy from Nike after seeing the ad, and Nike saw a 31% surge in online sales the week it launched. But make sure your actions match your messaging. Consumers want to know what you stand for, AND they will hold you accountable if you fail to deliver.
The strongest brands feel like movements. Create spaces (online communities, social campaigns, events) where your customers can engage with your brand’s values beyond just buying a product.
For example, Dove built an entire community around its Real Beauty campaign – celebrating real customers and their stories. It wasn’t just advertising; it was conversation and empowerment. That led to serious brand love and loyalty (not to mention sales jumping from $2.5B to $4B in the decade after launching Real Beauty).
In essence, the strategy is to connect on a ‘values’ level, not just a product level. If you do that, you’re not just selling shampoo or lipstick – you’re selling a shared belief, a lifestyle, a statement about the world. And when customers buy into that, they stick around for the long haul and bring others along with them.