Chic and Thriving: The UK's Beauty Industry on the Rise
The UK beauty industry is experiencing remarkable growth and transformation, demonstrating exceptional resilience in the face of economic challenges.
Market Performance
The British beauty industry achieved an impressive 11% growth in 2023, with sales reaching £27.2 billion across products and services. The sector outperforms several other industries, including publishing and chemical manufacturing. Looking ahead, Oxford Economics forecasts a 3% growth in 2024, significantly surpassing the broader economy's projected 1% growth.
Employment and Economic Impact
Workforce Growth The industry has created substantial employment opportunities, with:
- A 10% increase in total workforce in 2023
- Over 603,000 people employed across the sector
- 224,000 people specifically in hair and beauty services
Economic Contribution The sector's economic impact is substantial:
- £13.5 billion direct contribution to UK GDP
- £13.6 billion additional contribution through supply chain and employee spending
- £7.3 billion in tax revenues, including £3.6 billion direct contributions
Consumer Spending Patterns
Current Trends Consumer spending in health and beauty showed remarkable strength with a 7.3% year-on-year increase in August 2024. This growth is particularly noteworthy given:
- 68% of consumers maintained or increased spending on pharmaceuticals
- 66% sustained or boosted hair care product purchases
- 62% maintained or increased body care product spending
- 54% kept up or increased fragrance purchases
Market Evolution
Digital Transformation The sector has witnessed significant changes in purchasing behaviour:
- 37.2% of consumers now buy health and beauty products online
- 22% discover new beauty trends through social media
- Growing importance of social media platforms in influencing purchases
Consumer Priorities Despite economic pressures:
- 23% of consumers reduce clothing spending to maintain beauty purchases
- 32% opt for 'dupe' products due to cost-of-living pressures
- Only 18% prioritise original branded products
Future Outlook
The natural and organic beauty segment shows particular promise:
- Market value of £221 million in 2020
- Expected to reach £339 million by 2025
The industry's overall health and beauty spending is projected to rise by 8.8% by 2024, representing an additional £2 billion in market value.
Industry Leadership
The UK maintains its position as:
- The world's seventh-largest cosmetics market
- The third-largest market operating within the UK
- A hub for beauty creativity and innovation
This sustained success reflects the industry's ability to adapt and innovate, particularly in areas such as sustainability, product safety, and creative development, whilst maintaining strong performance despite Brexit, Covid-19, and cost-of-living challenges.