Ulta Beauty (NASDAQ:ULTA) said in a press release today it plans to launch eight different brands of "clean beauty" products this fall, offering personal care products made from "clean" ingredients to Gen Z purchasers or any other customer interested in the trend. The brands will attempt to set themselves apart through the "transparency" with which they reveal what ingredients are used in the beauty products, where they're sourced, and what fragrances are added.
Ulta Beauty cites an internally conducted April 2019 study that 1,700 consumers participated in and indicated that "ninety percent of Gen-Z shoppers intend to buy clean beauty products in the next year." The eight brands will include One Love Organics and Innersense Organic Beauty and will initially appear both on Ulta's e-commerce website and in approximately 100 stores out of its 1,264 outlet network.
Ulta Beauty is partnering with Credo Beauty, a company founded in 2015 to develop and market "clean beauty" products. According to Credo, its products avoid a set of ingredients it terms the "dirty list," including "2,700 specific ingredients and types of ingredients that are used in mainstream beauty products but Credo prohibits due to safety and/or sustainability reasons," while adhering to its own "Clean Standard."
Ulta Beauty says it is allied with Credo for the new product lines to draw on the other company's expertise in the clean beauty field. According to NPD Group research, clean beauty products were one of the only prestige cosmetics categories to grow during the COVID-19 pandemic, with sales rising 11% at the same time other high-end cosmetics saw a 14% plunge in demand.