The UK beauty and personal care industry is proving more resilient than many expected. Even as consumers tightened their spending and economic uncertainty lingered, the sector continued to deliver meaningful impact across jobs, growth, and public finances. The findings come amid continued investment across the UK beauty landscape, from Sephora UK’s rapid store expansion to the launch of experiential concepts such as Sephoria Europe. In contrast, K-beauty specialist PureSeoul has continued growing its UK store network to meet rising demand for Korean Beauty.
According to the latest Value of Beauty report from the British Beauty Council and Oxford Economics, the industry contributed £28.3 billion ($37.7 billion) to UK GDP in 2025, supported 595,000 jobs, and generated £8.8 billion ($11.7 billion) in tax revenue.
"The beauty industry is fundamentally part of almost everyone's everyday life," Millie Kendall OBE, CEO of the British Beauty Council, told BeautyMatter. "Consumers might trade down or look for offers during times of economic hardship, but they still spend money on our category. The figures coming in for retail for the first few months of 2026 are hopeful, but we have a long way to go before the end of the year."
The report, first launched in 2019 and updated annually since 2023, measures the economic impact of the UK personal care industry and provides forecasts for 2026.
The report said 2025 was a more challenging year for the sector following its post-pandemic rebound, with elevated cost-of-living pressures causing beauty and personal care spending to broadly flatten compared with 2024.
Employment also declined, with direct jobs falling 2.1% to 422,000 in 2025. Despite the slowdown, beauty remained one of Britain’s largest employers, supporting 595,000 jobs across the wider economy and employing more people directly than the UK’s publishing and broadcasting sector.
"I was surprised that the job losses we saw were predominantly in retail. I had expected more in services, but they seem to have gained some employment," said Kendall. "We need to ensure retail stays experiential and caters to the consumer's need for personal interaction and relationships. Building on our ability to make the nation feel good is essential to our future."
Kendall added that the long-term health of Britain's high streets remains one of the industry's biggest concerns. "I think the biggest risk in the UK is a dwindling high street that is currently anchored by beauty retail and services."
Oxford Economics expects the sector to return to growth in 2026, although the outlook remains exposed to inflationary pressure and wider economic uncertainty. Trade remained an important part of the industry’s economic footprint, although weaker global demand, post-Brexit trading barriers, and US tariff pressure limited export growth.
"It's already looking like there is some growth, but let's be clear, 2025 was a particularly difficult year in the UK," she said. "We had consecutive budgets that targeted business owners and affected small business owners disproportionately. It also affected our ability to employ and retain staff, a matter that was already on tenterhooks."
Oxford Economics said the sector’s reliance on Europe as an export market has increased since Brexit, in contrast with the wider UK economy. Since the introduction of the UK’s Trade and Cooperation Agreement in 2021, UK personal care exports to the European Single Market have contracted at an annual compound growth rate of -4.2%. Exports to non–Single Market countries have also declined, falling at an annual rate of 3.2% over the same period.
The US market also became more challenging in 2025. The report said US tariffs and changes to low-value shipment rules likely dampened export flows, particularly for smaller beauty businesses facing increased compliance costs.
Taken together, the findings highlight a sector that has moved beyond its post-pandemic rebound into a more mature phase of stabilization, in which macroeconomic conditions, trade dynamics, and structural shifts in consumer behavior increasingly shape growth. Flatlining demand, declining employment, and constrained export performance point to a more cautious operating environment, particularly for smaller businesses navigating rising costs and regulatory complexity.
At the same time, the industry’s scale and resilience remain clear. Its contribution to GDP, employment, and tax revenues continues to outpace those of several adjacent sectors, reinforcing its role as a foundational part of the UK economy. The projected return to growth in 2026 suggests that, while short-term pressures persist, the sector retains strong underlying fundamentals.
Looking ahead, the report underscores the importance of policy support, trade facilitation, and investment in skills and innovation to sustain momentum. As the industry adapts to evolving global markets and domestic economic conditions, its ability to balance resilience with growth will determine how effectively it can build on its economic contribution in the years ahead.
"There will always be work to do, but in the past seven years, we have made major improvements to the perception of the beauty industry in the halls of Westminster," she said. "We've had some major policy wins this year, including hair equity, permanent changes to education, Standard Industrial Classification (SIC) codes—which we impacted globally—and our UV safety report recommendations."
As the industry adapts to shifting consumer behavior, global trade pressures, and domestic economic challenges, the report suggests beauty's future will depend not only on continued consumer resilience, but also on maintaining government support, strengthening the high street, and investing in the talent pipeline that underpins one of Britain's largest consumer industries.
