UK Beauty Industry Grew By 11% in 2023
According to the British Beauty Council’s latest Value of Beauty Report, the UK beauty and personal care industry has become a substantial economic force, contributing a remarkable £27.2 billion to the UK’s GDP in 2023. This figure represents an 11% increase from the previous year, underlining the sector’s resilience and growth amidst broader economic challenges.
The report, compiled by Oxford Economics, revealed that the beauty industry’s direct contribution to the UK’s GDP in 2023 was £13.5 billion, which alone accounted for 0.5% of the nation’s total GDP. Additionally, the industry’s activities generated a further £13.6 billion through its extensive supply chain and the spending power of its workforce, bringing the total economic contribution to £27.2 billion. This makes the beauty sector a more significant economic contributor than even the UK’s publishing industry.
The report also highlights that the beauty sector’s direct GDP contribution grew by 11% in 2023, or by 3% when adjusted for inflation. This growth rate is significantly higher than the overall UK economy, which saw just 0.1% growth after inflation adjustment, underscoring the industry’s dynamic role within the broader economy.
Employment within the beauty sector also saw significant growth, with the industry supporting 418,000 jobs directly in 2023—a 10% increase from the previous year. This figure places the beauty industry ahead of the real estate sector in terms of job creation. Overall, the industry supported 603,000 jobs when including indirect and induced employment. This level of employment is expected to remain stable in 2024, reflecting the sector’s ongoing demand for skilled workers.
The beauty industry’s contribution to public finances is also noteworthy. In 2023, it contributed £7.3 billion in tax revenues to the UK Treasury, with £3.6 billion coming directly from the industry and its workforce, and the remaining £3.7 billion generated through indirect and induced economic activities. This substantial tax contribution is large enough to cover 86% of the annual budget for the Department for Digital, Culture, Media & Sport, highlighting the industry’s significant role in supporting public services.
Looking ahead, the report forecasts that the beauty industry will continue to grow in 2024, albeit at a slower pace due to inflationary pressures. Cash spending on beauty products and services is expected to increase by 3%, reflecting this slowdown compared to 2023. However, the industry’s total GDP contribution is still anticipated to rise to £28.1 billion in 2024, representing a 3% increase from 2023 and a 15% increase from 2022. This indicates that despite economic challenges, the beauty industry remains a robust and vital part of the UK economy.
“British Beauty has always been a hub of beauty creativity, cultivating some of the most global beauty talent to date,” said Millie Kendall OBE, CEO of the British Beauty Council. “We also lead the way when it comes to sustainability, product safety and innovation. This has all resulted in this clear success, which is also reinforced by the power of beauty on UK high-streets.”
The Value of Beauty Report underscores the critical role of the beauty and personal care industry as a growing pillar of the UK economy. As the beauty industry continues to evolve, its contributions to the UK economy are expected to remain significant. Whether through direct GDP contributions, job creation, or tax revenues, the sector is poised to be a crucial driver of the nation’s economic stability and growth.