Overspending is a concern for many consumers, especially Gen Z, who was found to be the generation that regrets the most overspending on beauty products. This is where social media and online influencers play a role, according to LendingTree senior director of content Ismat Mangla.

“Social media plays a big role in how we spend, especially on smaller items like beauty products,” she said. “We live in an influencer culture — when you see the latest viral beauty trend on Instagram, TikTok or YouTube, it’s tempting to spend just to see what the fuss is about. And when we’re buying items that individually cost less than $50 or $100, it can be very easy to overspend without even realizing it.”

Consumers agree with this claim. 64% of Gen Zers say that social media has contributed to them spending more on beauty products than they would’ve otherwise. It isn’t the only factor influencing consumers’ expenses in the beauty industry. Price and affordability is the primary concern, with 62% of respondents saying it influences their purchase decision. Nearly half of consumers also cite brand reputation and ingredients and formulations. Other important factors include product claims, results and testimonials, and recommendations from friends or influencers.

Mangla explains that many may not realize how much they are spending each year.

“Small costs can add up,” she said. “When people are feeling economic pressure, it may be harder to splurge on big-ticket items, but things like skincare and beauty products are very attractive and appealing to spend on because they’re attainable luxuries. So we may buy beauty products without realizing how much we spend.”