A new report from the British Beauty Council cites an 11 per cent growth for the British beauty industry in 2023, valuing it at £27.2 billion (US$35.6 billion, €32.1 billion)
The most recent edition of the Value of Beauty report uncovers the high growth and ongoing resilience of the beauty sector
Findings show the industry’s workforce increased to 603,000 in 2023 – a 10 per cent increase on the previous year
The sector’s annual growth rate is forecasted to be higher than the national average in 2024, expected to peak at 3 per cent year-on-year
New research indicates the British beauty industry grew by 11 per cent last year – with signs it is shaking off the triple hangovers of Brexit, Covid and the cost of living crisis.
According to the British Beauty Council’s latest
Value of Beauty Report* compiled by Oxford Economics, sales reached £27.2 billion (US$35.6 billion, €32.1 billion) last year for both products and services.
The latest figure suggests the industry is recovering well and beginning to encroach on the pre-COVID average of £28 billion (US$36.6 billion, €33 billion).
Growth in employment also grew by 10 per cent supporting a workforce of more than 603,000 people.
Overall growth last year was bolstered by inflation but even though it is expected to slow next year along with price rises, Oxford Economics still predicts growth of 3 per cent in 2024 – far higher than the 1 per cent average for the economy.
The growth puts the beauty industry ahead of publishing, chemical manufacturing and the creative arts and entertainment industries.
Maintaining momentumMillie Kendall OBE, CEO of the British Beauty Council, hailed the findings as a tribute to the hard work, dynamism and versatile nature of the industry and its workers.
She called on the government to ease access to the EU which, post-Brexit, had caused almost an £850 million (US$1.1 billion, €1 billion) drop in exports.
“We’ve almost returned to our 2019 peak economically, despite structural and economic challenges,” she said. “We’ve had to be dynamic and pivot – looking to China, USA, Australia, Middle East and India to help grow our exports in the face of increased red tape when trading with the EU."
But she said the British industry still managed to grow compared to its EU neighbours.
"The adaptable and agile nature of the British beauty industry enabled us to surpass the biggest four members of the EU in growth across prestige beauty and skincare in the first half of 2024,” she said.
“Couple this with our tremendous domestic growth and we have a lot to be optimistic about.
"Beyond export, beauty’s domestic influence is astounding, bolstered by the opening of Sephora in the UK."
The Value of Beauty reportsThe British Beauty Council and Oxford Economics launched the first comprehensive study of the value that the beauty industry creates for the UK economy in terms of its contribution to GDP and the jobs it sustains in 2019, helping to establish an economic footprint of the industry.
In early 2023, the two organisations updated this research, quantifying how the industry’s economic impact evolved from 2018 to 2022.
The most recent iteration of the report updates the previous study with an economic impact estimate for 2023 and a forecast for 2024.
The British Beauty CouncilFounded in 2018, the Council is dedicated to elevating the voices, opinions and needs of the British beauty industry – from hairdressing to aesthetics, therapy and spa; in education and training; and formulation to manufacturing, supply, logistics packaging, design, retail and media.
Its ambition is to ensure that the beauty industry is recognised and valued at all levels of government, throughout the wider economy, and by consumers
The body is governed by an Executive Board, which is supported by a 70+ strong Advisory Board from across the beauty industry
It is also supported by a roster of 98 patrons, including several spa and wellness brands; Aromatherapy Associates, Comfort Zone, Cowshed, Dermalogica, Elemis, Grown Alchemist, HydraFacial, L'Occitane, Soho Skin and Wildsmith Skin.
