The beauty industry made a total GDP contribution of £30.4bn to the UK economy in 2024 – a 9% increase compared to the year before, according to the British Beauty Council’s updated Value of Beauty report.
The UK beauty sector’s growth rate was more than four times faster than the growth rate of the overall UK economy, found Oxford Economics, which was commissioned by the not-for-profit industry body to analyse the UK personal care industry’s economic impact in 2024.
As such, the beauty sector’s direct contribution to UK GDP was larger than that of sports, amusement and recreation.
An 8% increase in spending on beauty products and services by UK households was cited as one of the key drivers behind the growth.
Millie Kendall, CEO of the British Beauty Council, told Cosmetics Business that this data showcases the power of beauty as an economic driver in the UK.
“The continued growth is incredibly good and sustaining growth is really important,” she said.
“One of the most important things is not just the 9% increase in growth in 2024, but also the fact that [Oxford Economics] are predicting that in 2025 it will still increase.
“Because given what we have just been through in October with the budget, the spending review and all the new taxes that UK businesses have had to absorb, the fact that the industry would still grow is quite astonishing.
“And the fact that our industry grew over four times faster than the growth rate of the overall national economy is phenomenal.”
The report analysed the UK personal care industry’s economic impact in 2024
What supercharged the growth?
Innovation in skin care has been named an important factor in the sector’s supercharged growth rate, along with a more exciting, dynamic and expanding UK beauty retail landscape.
“I think beauty retail has become quite exciting in the UK compared to what I am seeing in other European countries, for example,” said Kendall.
“I think our retail landscape is quite
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