Originally posted https://professionalbeauty.co.uk/uk-beauty-industry-value-of-beauty-2026-jobs-gdp
The British Beauty Council’s Value of Beauty 2026 report shows the UK personal care industry remained economically significant in 2025, but employment fell amid rising business costs
The UK beauty and personal care industry contributed £28.3 billion to the UK economy in 2025, but employment across the sector fell as businesses faced continued economic pressures, according to the latest Value of Beauty 2026 report.
The annual report, commissioned by the British Beauty Council and compiled by Oxford Economics, assesses the economic impact of the UK personal care industry, including hairdressing, beauty services, wellness, aesthetics, consumer goods, manufacturing, retail, marketing and media.
While the sector remained a major contributor to the UK economy, total employment supported by the industry fell by 2.8% in 2025, with direct employment down 2.1% compared with 2024. The report attributed the pressure on businesses to rising wage costs, National Insurance contributions, business rates and utility bills.
How Much is the UK Beauty Industry Worth?
According to the report, the UK beauty and personal care industry supported a total GDP contribution of £28.3bn in 2025. More than half of this – 51% – was generated directly by the industry itself, with a direct GDP contribution of £14.4bn.
The remaining contribution came through the sector’s wider economic impact, including £6.1bn supported by domestic supply chain purchases and £7.8bn through wage spending by workers in the industry and its supply chain.
The report said the industry’s total GDP contribution represented a 0.4% decrease compared with 2024. This was linked to a 0.7% decrease in household spending on personal care products and services, as well as weaker demand for UK personal care products overseas.
Beauty Services and Hairdressing Generated the Largest Direct GDP Contribution
The report distinguishes between the wider personal care industry and its individual sub-sectors, including professional services and product-led areas.
Beauty services, including hairdressing and beauty therapies, generated the largest share of the sector’s direct GDP contribution, at £5.7bn in 2025.
This makes the services side of the industry – including salons, hairdressers, beauty therapists and related professional services – a key driver of the sector’s economic value, separate from retail, manufacturing and export activity.
Employment Falls Across the UK Beauty and Personal Care Sector
The UK personal care industry supported more than 595,000 jobs across all impact channels in 2025, including direct jobs and employment supported through supply chains and wage spending.
Of these, the industry directly employed 422,000 workers, with the beauty services sub-sector employing 243,000 workers.
The report found that total employment supported by the sector was down 2.8% on 2024, while direct employment fell by 2.1%.
Millie Kendall OBE, Chief Executive of the British Beauty Council, said: “Successive budgets have made it increasingly difficult for beauty businesses to create and sustain jobs. Ours is a labour-intensive sector that plays a vital role in driving social mobility and providing employment opportunities for young people.
“Despite these headwinds, the good news is the industry’s economic contribution remains strong, demonstrating the resilience of consumer demand and the important role our sector continues to play in supporting Britain’s high streets and wider economy.”
Beauty Industry Tax Contribution Reaches £8.8bn
The report also found that the personal care industry supported £8.8bn in tax revenue for the UK Treasury in 2025.
Of this, £4.6bn was generated directly by the industry, with supply chain and wage payments supporting further contributions of £1.6bn and £2.7bn respectively.
UK Beauty Exports Hit £4.2bn, but US Trade Declines
The product side of the beauty and personal care industry also remained significant, with the UK exporting £4.2bn of beauty and personal care products in 2025. This represented 1.25% of total UK goods exports.
The report found that the EU Single Market remained the most important export region for UK beauty and personal care products. In 2025, 70% of UK beauty product exports went to the Single Market, up four percentage points compared with 2019.
Ireland was the largest export market for UK beauty and personal care products, at £652m, followed by Belgium at £448m and the US at £368m.
However, the report also highlighted weaker US export performance. Exports to the United States were 19% lower in Q4 2025 than in Q1 2025, following the introduction of tariffs and the suspension of the “de minimis” threshold on commercial shipments.
What is the Outlook for the Beauty Industry in 2026?
Despite the pressures recorded in 2025, the report forecasts growth for 2026.
Consumer spending on beauty products and services is expected to increase by 3.9% year-on-year in cash terms, while the industry’s total GDP contribution is forecast to rise to £29.4bn.
Employment supported by the personal care industry is also forecast to increase to 609,000 jobs in 2026, a 2.4% rise compared with 2025. The industry’s total tax contribution is forecast to reach £9.4bn, with £5bn supported directly.
However, the report said the outlook remains uncertain and subject to downside risks, including wider economic and geopolitical pressures.
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FAQ: Value of Beauty 2026 report
How much is the UK beauty industry worth?
The UK beauty and personal care industry contributed £28.3 billion to the UK economy in 2025, according to the Value of Beauty 2026 report, commissioned by the British Beauty Council and compiled by Oxford Economics.
Did employment fall in the UK beauty industry in 2025?
Yes. Employment supported by the UK beauty and personal care industry fell by 2.8% overall in 2025, while direct employment in the industry fell by 2.1% compared with 2024.
How many jobs does the UK beauty industry support?
The UK beauty and personal care industry supported more than 595,000 jobs in 2025. Of these, 422,000 were directly employed by the industry, while beauty services employed 243,000 workers.
Which part of the beauty industry contributed the most to GDP?
Beauty services, including hairdressing and beauty therapies, generated the largest share of the sector’s direct GDP contribution in 2025, at £5.7 billion.
How much tax does the beauty industry generate?
The UK beauty and personal care industry supported £8.8 billion in tax revenue for the UK Treasury in 2025, including £4.6 billion generated directly by the industry.
How much does the UK export in beauty and personal care products?
The UK exported £4.2 billion of beauty and personal care products in 2025, representing 1.25% of total UK goods exports.
What is the outlook for the UK beauty industry in 2026?
The report forecasts that consumer spending on beauty products and services will increase by 3.9% in 2026. Total industry-supported employment is expected to rise to 609,000 jobs, while the industry’s tax contribution is forecast to reach £9.4 billion.
