Beauty holds an immense value on not just a personal, but also industrywide, level. But top-line figures aside, such as the £27.2 billion ($33.7 billion) that beauty brought in annually in the UK alone in 2018, there is more nuance to its worth. British Beauty Council first captured the magnitude of this in 2019 with the release of their inaugural The Value of Beauty report.

Now the not-for-profit organization has published the 2023 edition, produced again in partnership with Oxford Economics. While the personal care industry took a heavy hit through the pandemic, witnessing a decrease of 28.1% in contributions to the economy, there are still substantial contributions to the nation’s overall economy. However, Brexit is creating a challenging growing environment for the proverbial seeds of the industry, from burdening businesses with exporting challenges to reducing access to skilled workers and decreased wages. Given the immense contributions of the personal care industry to the UK economy, financial support to help the very contributors to its growth navigate these challenging times would be a great benefit. BeautyMatter pinpoints the most salient findings of their research.

Financial Contributions

• The personal care industry contributed £24.5 billion to the UK’s GDP, £12.3 billion of which were generated by the industry itself.
• £4.9 billion of economic activity was contributed by the industry’s domestic supply chain purchases and £7.3 billion through wage payments made to industry workers.
• £6.8 billion in tax contributions were made to the UK treasury.

Education & Employment

• 550,000 individuals were employed across the industry: 379,000 through the industry itself, and 209,000 through hair and beauty services. 
• 80,000 recognized industry-related qualifications were completed in the 2021/22 academic year. 70% of these were of a GCSE (or GED) equivalent standard.
• A greater proportion of employment is in areas with relatively high income deprivation/unemployment.

Digital Drivers

• Total revenue accounting from e-commerce sales for the sector were at 40% in 2022.
• 68% of marketers work with influencers.
• 88% of brands have a dedicated influencer budget.
• 25% of average brand budgets go to influencer marketing.

Brexit Blowback

• 49% of UK exporters are having difficulties adapting to the new trading requirements.
• 59% of full-time personal care industry employees made less than the skilled worker visa earnings threshold in 2022. By comparison, for all employees in the UK, this percentage is 33%.

“The personal care sector has been devastated by the combination of the pandemic, Brexit and the ongoing energy and economic crises. Yet despite all it has had to deal with, it has rebounded impressively,” Millie Kendall OBE, Chief Executive Officer of the British Beauty Council, tells BeautyMatter. “The sector has seen an explosion of new brands on the market with over 500 companies per year with beauty in their name registering with Companies House. We are a predominantly female-led industry, providing a wealth of exciting careers and making a significant contribution to the UK economy whilst genuinely embracing diversity and actively supporting social mobility. The Value of Beauty proves that no one should underestimate the power of UK personal care.”