The Resilience and Growth of the UK Beauty Industry: A Look at the British Beauty Council’s Value of Beauty Report

The UK beauty industry has proven its resilience, with the British Beauty Council’s latest Value of Beauty Report, compiled by Oxford Economics, revealing significant growth despite the challenges of Brexit, COVID-19, and the rising cost of living. In 2023, the beauty sector, which includes both products and services, grew by an impressive 11%, bringing sales to £27.2 billion, just shy of the pre-pandemic average of £28 billion.

This growth is a testament to the strength of the UK’s skincare brands and skincare manufacturers, which continue to thrive despite the challenges. UK Skincare manufacturers and suppliers have played a pivotal role in this resurgence, contributing to the industry's economic impact. Moreover, skincare wholesale suppliers and have been instrumental in keeping the supply chain strong, ensuring that UK skincare distributor networks remained robust during this period.

The Economic Power of the Beauty Sector
In 2023, the beauty and personal care industry emerged as a powerhouse, outpacing sectors such as publishing, chemical manufacturing, and creative arts. Employment within the beauty sector also saw a 10% rise, with over 603,000 individuals working across the industry, from salons to product development. In particular, the health & beauty wholesalers and UK health and beauty wholesalers to the growth by maintaining efficient distribution channels, even during economic turbulence.

The impact of the skincare manufacturers and skincare distributors extends beyond employment. Their contributions, along with the taxes paid by the beauty workforce, now account for 86% of the annual budget for the Department for Digital, Culture, Media & Sport. This illustrates the industry’s pivotal role in the UK’s socio-economic landscape, with skincare wholesalers and health & beauty wholesale businesses playing a vital role in maintaining the economy.

Looking Forward: Growth in 2024
Despite rising costs, the UK skincare manufacturing sector is expected to continue growing, with a forecasted 3% increase in 2024. This outpaces the overall economy’s growth rate of 1%. As global trade continues to be redefined post-Brexit, Korean wholesale cosmetics are becoming increasingly relevant to the UK market. The UK is looking to global markets, such as Korean wholesale makeup, to diversify and enhance its beauty exports.

Millie Kendall OBE, CEO of the British Beauty Council, praised the industry’s adaptability. British beauty brands are focusing on markets in China, the USA, and the Middle East to counterbalance the EU trade barriers. Additionally, the UK’s leadership in beauty innovation, sustainability, and safety has helped maintain its strong performance on the international stage. UK Private label cosmetics manufacturers are also seeing growth, with many brands focusing on customisation and new product development to meet evolving consumer demands.

Key Findings from the Value of Beauty Report

• The UK skincare brands sector directly contributed £13.5 billion to the UK’s GDP in 2023. Including the impact from supply chains and employee spending, the total contribution reached £27.2 billion
• Nearly half of this contribution came directly from the industry, representing 0.5% of the UK’s total GDP.
• Employment in the beauty sector, which includes UK skincare distributor businesses and private label UK cosmetics manufacturers, grew by 10%, with the industry now employing more people than the real estate sector.
• The beauty industry supported £7.3 billion in tax revenues, highlighting the significant role of health and beauty wholesale

International Growth Opportunities

As UK brands continue to innovate, opportunities in international markets grow. With the rise of korean wholesale cosmetics and imports, UK retailers and consumers alike are benefitting from access to global beauty trends. Wholesale Korean beauty products are now an integral part of the UK beauty landscape, catering to the rising demand for K-beauty products known for their innovation and high-quality ingredients. Moreover, private label UK makeup manufacturers are also seeing increased demand for customisation and niche product lines, making the UK a hub for beauty innovation and entrepreneurship. With the industry's dynamic nature and its ever-growing potential, the outlook for the UK beauty sector remains strong into 2024 and beyond.

You can download the full report here: www. britishbeautycouncil.com/value-of-beauty-report-third-edition/