How e.l.f is Taking Over the Beauty Industry

The popularity of this drugstore makeup brand has surged as consumers seek affordable yet high-quality beauty products.

Mikayla Nogueira, a top TikTok beauty influencer, admits that predicting the virality of her daily makeup videos is uncertain, unless they feature e.l.f. e.l.f, which initially gained popularity selling $1 eye shadows and lip products, holds such esteem among her 15.2 million TikTok followers that discussions often circle back to e.l.f, regardless of the topic of the day. Even when she reviews prestigious brands like Patrick Ta or Dior, her followers frequently interject with remarks like “Let’s see the e.l.f dupe” or “I’m holding out for e.l.f”.

Based in Oakland, California, the company has established a strong presence in a part of the beauty industry that thrives on duping. Dupes, or duplicates, are makeup and skincare items closely resembling higher-end products but sold at significantly lower prices. Analysts attribute e.l.f’s success to its utilization of social media experimentation positioning it as the leading beauty brand of the current era.

“We hold a tremendous amount of respect for our competitors; we believe there are extraordinary areas of inspiration within the industry,” stated Tarang Amin, CEO of e.l.f Cosmetics. The company witnessed a remarkable 76 percent increase in net sales last year, with its shares surging over 160 percent in 2023.

Established in 2004 by Scott-Vincent Borba, along with Alan Shamah and Joey Shamah, e.l.f (an abbreviation for eyes, lips, face) initially stunned the industry with its bold approach of offering mascara, eye shadow, and lip gloss for just $1 online. Quickly gaining popularity, the brand expanded its presence into drugstores, supermarkets, Target, and Ulta. By the time equity investment firm TPG Growth acquired a majority stake in 2014, e.l.f had already achieved $100 million in sales, according to Amin. Last year, its sales surpassed five times that amount.

During a TikTok live stream last summer, Tarang Amin, e.l.f’s CEO, found himself bombarded with requests from customers. Their primary plea: a more affordable alternative to Drunk Elephant’s popular bronzing drops, a serum known for its sun-kissed glow effect under makeup, retailing at $38. “We don’t want to pay that much for it,” customers said. Immediately after the live stream, Amin directed e.l.f’s innovation team to start working on fulfilling this high demand.

According to TikToker, Nogueira, e.l.f has emerged as one of the most adept brands in profiting off this dupe trend. It has consistently produced dupes that stand toe-to-toe with products from prestigious brands like Charlotte Tilbury, Milk Makeup, Dior, Smashbox, Benefit, Laneige, Supergoop, Tarte, and Anastasia Beverly Hills. An early success for e.l.f was its Mineral Infused Face Primer, which, according to Amin, was inspired by Smashbox’s Photo Finish. While Smashbox’s version retails for $42, e.l.f’s primer is priced at just $10. He mentioned that e.l.f responded to the popularity of Charlotte Tilbury’s Hollywood Contour products, which were frequently unavailable due to high demand, by developing Halo Glow contour, blush, and highlighter wands.

e.l.f takes pride in offering clean, vegan, and cruelty-free products, all manufactured in fair-trade-certified facilities. In many instances, Nogueira noted a preference for e.l.f’s dupes over the original products, including e.l.f’s $14 version of Charlotte Tilbury’s $49 Flawless Filter.

So, are going to save or splurge…? Or wait for e.l.f to dupe it?