The British beauty industry grew ‘significantly’ faster than the rate of the overall economy in 2023.
According to a report by the British Beauty Council and Oxford Economics, the beauty and personal care industry directly contributed £13.5bn to the UK gross domestic product (GDP).
This was in addition to £13.6bn indirectly via beauty’s supply chain and employee spending.
The sector’s direct contribution increased by 11% in 2023, or 3% after adjusting for inflation, outpacing the growth rate of the overall UK economy (0.1% after adjusting for inflation).
Beauty’s direct GDP contribution equalled that of the postal and courier segment and outperformed publishing, chemicals, the creative arts and information services.
Compared with other industries, only sports and recreation (£14.7bn) contributed more.
The Economic Impact of the UK Personal Care Industry in 2023 and 2024 further reported that beauty and personal care contributed £7.3bn in tax revenues.
Of this, £3.6bn was contributed directly by the sector and its workforce.
Moreover, last year saw the industry’s workforce grow to 418,000, representing a 10% increase on 2022.
This, said the British Beauty Council, puts the beauty category ahead of real estate as an employer.
“The beauty industry has long been underestimated for its economic influence, despite the fact it touches almost everyone, everyday,” Millie Kendall, founder and the first CEO of the British Beauty Council, told Cosmetics Business.
“The new figure of £27.2bn contribution to GDP only serves to reinforce the power of beauty, particularly when compared to other industries including publishing and creative arts & entertainment.
“The fact we are almost back to our pre-Covid peak shows the industry's resilience despite challenges including the cost of living crisis, Brexit and the pandemic.”
Looking ahead, the council anticipates that British spend on beauty products and services in 2024 will grow just 3%, which it described as a ‘marked slowdown’.
It attributed this to generalised inflation, with Kendall explaining that “this actually amounts to sustained success given the high rates of inflation we have witnessed over the past year”.
She added: “The British Beauty Council will continue to support the sector in areas including global trade, product safety, inclusivity of employment and product, and more to ensure the industry has every chance of maintaining growth.”
