Influencer Favorite E.l.f. Beauty Outpaces Industry Leaders In Earnings—Here Are TikTok’s Most Talked

The makeup brand loved by influencers, e.l.f. Beauty, this week reported its 18th consecutive quarter of sales growth and market share gains, pointing to a marketing strategy that's paid off as the brand continues to partner with big-time social media personalities like Meredith Duxbury, Nabela Noor and Mikayla Nogueira.

Elf Cosmetics mural is painted as NYLON Celebrates Art, Music And Fashion At The NYLON House, Art ... [+] Basel Miami on December 03, 2021 in Miami, Florida. Photo by Eugene Gologursky

The company—which has a $7.25 billion market cap—reported $216.3 million in sales for the three months ending June 30, a 76% rise in net sales over the same period last year.

e.l.f., known for its low prices and for making cheaper “dupes” of popular makeup products, is estimating between $792 million and $802 million in sales this year, its updated fiscal 2024 outlook shows, which would be 37% to 39% year-over-year growth.

e.l.f. has experienced at least 20% growth in each of the last 18 quarters, its CEO Tarang Amin said, which places its growth well above that of industry leaders L’Oreal, with an expected 8% growth this year, and Estee Lauder, whose sales are expected to drop 10%, Reuters reported.

The company has not been shy about crediting its growth to a social media-savvy marketing team: Ekta Chopra, chief digital officer at e.l.f. Beauty, credited successful partnerships with female gamers, engaging micro-influencers to promote products on TikTok and early adoption of new platforms, like BeReal, as reasons the brand is a leading favorite of Gen Z.

TikTok itself points to e.l.f. and their marketing partner Tinuiti as a case study for what the platform can do for businesses—adopting a new "always-engaged" strategy of targeted ads drove the company's click-through rate up 90% over benchmark, TikTok said.

It’s not just TikTok influencers e.l.f. partners with—the brand joined forces with American Eagle earlier this year for a new joint campaign with Outer Banks actress Carlacia Grant, aired its first Super Bowl ad this year with actress Jennifer Coolidge and in 2021 released several products with the Mexican food chain Chipotle; the launch, which sold out in four minutes, included an eyeshadow palette, lip gloss, makeup bag and sponges.

Viola Davis and Helen Mirren join L’Oréal Paris to celebrate the launch of Age Perfect Cosmetics on ... [+] March 03, 2020 in Beverly Hills, California. Photo by Rachel Murray

L’Oréal Paris—Videos on TikTok that have tagged the beauty industry giant have 8.2 billion views on the platform. Products like the Infallible Fresh Wear Foundation and the True Match line have had their viral moments on the app, and L’Oréal reported sales up 13% in the first half of 2023 thanks to a 20% bump in Europe. L’Oréal's ambassadors include Andie MacDowell, Camila Cabello, Celine Dion, Elle Fanning, Eva Longoria, Helen Mirren, H.E.R, Viola Davis and Kate Winslet.

Rare Beauty founder and creator Selena Gomez visits Sephora Times Square on November 04, 2021 in New ... [+] York City. Photo by Mike Coppola

Rare Beauty—Rare Beauty is another one propped up by TikTok for its success using the platform. With 7.5 billion tag views, TikTok says the brand can attribute its success to highlighting founder Selena Gomez’s personality, as well as others who "love and genuinely use its cosmetics." Rare Beauty has never confirmed its valuation, but in 2022 generated $70 million in revenue from sales of a single blush, Bloomberg reported. Sales are reportedly on pace to triple this year.

Elf Cosmetics display as NYLON Celebrates Art, Music And Fashion At The NYLON House, Art Basel ... [+] Miami on December 03, 2021 in Miami, Florida. Photo by Eugene Gologursky

e.l.f. Beauty—Tagged TikTok views for e.l.f. have reached 7.2 billion, with the most popular influencer videos being those that compare the brand’s products to the high-end versions that inspired them. Some of e.l.f.’s biggest beauty influencer partnerships include those with Meredith Duxbury, who has 18.5 million followers, Ariana Hailey with 15.9 million and Mikayla Nogueira, who has 14.7 million followers and had an e.l.f.-branded "kissing booth" at her highly publicized wedding last month.

Gigi Hadid attends a party which she hosted to launch her new limited-edition Maybelline collection ... [+] on November 7, 2017 in London, England. Photo by David M. Benett

Maybelline—With 6.8 billion tag views, Maybelline is also one of the most talked about brands on TikTok. It's a single product category—mascara—that has been a standout for the brand. Sky High Mascara content racked up hundreds of millions of views on its own last year and a 2023 rendition, Illegal Length Mascara, is blowing up now. Maybelline is a subsidiary of L'Oréal. Maybelline has also partnered with influencers Dylan Mulvaney and Manny Gutierrez, and ambassadors include Adriana Lima, Josephine Skriver and Gigi Hadid.

Huda Kattan attends Huda Beauty 10 Year Anniversary & Product Launch Party on July 05, 2023 in ... [+] Paris, France. Photo by Kristy Sparow

Huda Beauty—Huda Kattan, who went from working in finance to founding cosmetics firm Huda Beauty, built a brand that has racked up 5.5 billion tag views on TikTok. Kattan launched a blog in 2010 and started the brand three years later. Private equity firm TSG Consumer Partners acquired a small minority stake in 2017 in a deal that valued the company at $1.2 billion, and Kattan was ranked No. 10 on Forbes’ Richest Self-Made Women list this year with a net worth of $400 million.

M.A.C Cosmetics lipsticks at a Los Angeles store. Photo by L. Cohen

MAC—This industry staple has 4.8 billion tag views on TikTok thanks to viral products like MACStack Mascara, Lustreglass Lipstick and the Plumping Gloss Stick. MAC is owned by Estée Lauder, which reported a 12% decrease in net sales for the three months ending March 31.

Kylie Cosmetics are displayed at Ulta beauty on November 18, 2019 in New York City. Photo by David ... [+] Dee Delgado

Kylie Cosmetics—Another Richest Self-Made Women alumna, the cosmetics company owned by Kylie Jenner has 3.8 billion tag views. Jenner sold a 51% stake in her company to Coty in 2020 for $600 million, and is still estimated to own a 44% stake. She's built her brand largely thanks to her massive social media following—she boasts 398 million followers on Instagram and 54.3 million on TikTok.

Rihanna attends the launch of her brand 'Fenty Beauty' at Lotte Cinema World Tower on September 17, ... [+] 2019 in Seoul, South Korea. Photo by The Chosunilbo JNS

Fenty Beauty— The make-up brand created by pop star Rihanna is one of the most successful celebrity ventures ever, which is evident by its 3.8 billion tag views. Robyn Fenty was skyrocketed to billionaire status by the success of her beauty brand and Savage x Fenty, a lingerie company. Fenty Beauty was worth a conservative $2.8 billion in 2021, Forbes estimates. Rihanna is the 2,133th richest person in the world as of Friday, with a net worth of $1.4 billion.

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