The British beauty and personal care industry is proving to be a vital pillar of the UK economy, according to the latest Value of Beauty Report, a study commissioned by The British Beauty Council and Oxford Economics. The report quantifies the beauty sector’s contribution to the UK economy, offering data-led insights to inform policymakers, investors, and industry leaders.

The UK beauty industry has surged with experiential innovation, highlighted by Superdrug’s roll-out of interactive "Beauty Playgrounds" which feature "Try Me Tables," social media stations designed to drive deeper engagement, and Boots’ beauty-only destination stores, while Sephora expands its high-street footprint with plans to open 20 stores by 2027. The expansion of beauty retail reflects a broader trend toward immersive retail and accessible prestige in a booming market.

According to the report, in 2024, the sector contributed £30.4 billion ($44.2 billion) to UK GDP, growing four times faster than the wider economy after inflation, and supported nearly 700,000 jobs.

With consumer spending reaching £32.4 billion ($44.1 billion) and tax contributions expected to reach £9.4 billion ($12.8 billion) in 2025, the report highlights the sector’s resilience, economic impact, and growing demand for high-performance, accessible beauty. However, a sharp post-Brexit decline in exports reveals ongoing trade challenges, particularly with the EU, which still accounts for 70% of beauty exports. 

“Beauty's drop in exports, and top exporting locations, doesn't come as a surprise given the repercussions of not only Brexit but also the fluctuation in trade red tape globally,” Millie Kendall OBE, CEO of the British Beauty Council, said. “With 70% of beauty's exports going to the EU, it is markedly important that policymakers mitigate trading challenges to the rest of the world to aid our global growth. That said, there is a clear appetite from brands to focus on their home market, building our reputation in the UK.”

BeautyMatter outlined the key findings:

GDP Contribution and Economic Growth

• The direct contribution of the beauty and personal care industry to UK GDP in 2024 was £15.9 billion (21.6 billion), up from £14.6 billion ($19.9 billion) in 2023 (+9%).
• Including supply chain and employee spending, the total GDP contribution was £30.4 billion (41.4 billion) in 2024.
• Beauty accounted for 1.1% of the UK’s total GDP.
• The sector’s inflation-adjusted growth was 5%, 4x faster than the broader economy, which grew by 1.1%.
• Beauty now contributes more to GDP than the sports, amusement, and recreation sector.

Consumer Spending

• In 2024, consumer spending on personal products and services rose to £32.4 billion (44.1 billion, +8% year over year (YoY) in cash terms).
• Personal care goods are £22.3 billion ($30.4 billion, +5%/+3% after inflation).
• Professional services at £10.1 billion (13.7 billion, +10% after inflation).

Employment and Workforce

• The industry directly employed 496,000 people in 2024, representing an 11% YoY increase.
• This surpasses the pre-pandemic peak of 478,000 in 2019.
• The total employment footprint of the industry in 2024 was nearly 700,000 jobs. This is expected to decline by 2% to 680,000 in 2025.
• The beauty industry employs more workers than publishing and broadcasting, utilities, and telecommunications in the UK.

Tax Contributions

• In 2024, the industry supported £8.6 billion ($11.7 billion) in tax revenue, equivalent to 34% of the budget for the Department of Science, Innovation and Technology.
• In 2025, tax contributions are projected to rise by £9.4 billion ($12.8 billion). This was driven by higher national insurance contributions and a rise in the minimum wage.

Exports and Trade

• UK beauty and personal care exports in 2024 totaled £4.3 billion ($5.8 billion), making up 1.3% of the UK’s total goods exports.
• Since Brexit, exports have declined -5.9% annually to the EU and -4.4 annually to non-EU countries.
• 70% of beauty exports still go to the EU (vs. only 47% of other goods exports).

“The UK beauty and personal care sector saw stable growth in 2024, supported by strong consumer spending. The sector grew significantly faster than the overall UK economy and is supporting a growing share of the country's GDP, jobs, and tax revenue,” Vasilis Douzenis, Associate Director of the Oxford Economics Economic Impact Department, added. “Beauty now directly contributes a larger share of GDP than the sports, amusement, and recreation sector. It also employs more jobs than the publishing and broadcasting sector.” 

As the UK economy continues to navigate post-Brexit uncertainties and shifting global trade dynamics, the beauty and personal care sector stands out as a key driver of growth, delivering robust gains in GDP, employment, and consumer spending. While export challenges remain a pressing concern, particularly given the industry's reliance on the EU market, its domestic performance signals resilience and long-term potential. With nearly 700,000 jobs supported and £9.4 billion ($12.8 billion) in tax contributions predicted for 2025, the British beauty sector is not only an economic powerhouse but also a vital asset for policymakers and investors seeking to future-proof the UK’s retail and services landscape.