The Notebook: Britain’s beauty industry is defying the odds. Here’s why
The comeback of Britain’s beauty industry is a national triumph. Let’s celebrate it, writes British Beauty Council CEO Millie Kendall in today’s Notebook
How the beauty industry bounced back
Few industries have had such a torrid time in recent years as British beauty. What with Brexit hitting exports by £850m, lockdown closing salons and the cost of living crisis seeing households cutting back. But few other industries have also bounced back quite as well.
Our latest Value of Beauty report compiled by Oxford Economics revealed that the industry grew by an impressive 11 per cent last year – shaking off those triple hangovers of Brexit, Covid and the cost of living crisis.
Total revenues from the industry’s products and services approached pre-Covid levels – and growth in sales of prestige beauty products overtook the four biggest EU economies for the first time ever.
Sales reached £27.2bn last year for both products and services and next year are expected to overtake the pre-Covid high of £28bn.
Growth in employment also grew by 10 per cent and now the industry supports a workforce of more than 603,000 people. It is a remarkable turnaround – and one that is unique to the United Kingdom.
The UK is now the second biggest beauty market for fragrances, skincare, make-up and hair products in Europe worth annually €1.8bn (£1.5bn) – just €100m (£84m) below the French, the traditional market leader. At current rates of growth it could soon be the biggest.
It is a tribute to the hard work, dynamism and versatile nature of the industry and its workers. But it is also I would argue a tribute to its incredibly diverse and inclusive nature.
Our Beauty Census revealed that nearly 90 per cent of the industry is run by female entrepreneurs. We have people from all backgrounds, races and sexual orientations – and that is why we are so dynamic.It means we know how to cater for all of society – because we come from all of society.
That is why the theme of our British Beauty Week this year was A Beauty Industry That Looks Like You – and why other industries should take note.
Rita’s aura is beauty boost
Rita Ora follows in the great tradition of British singer-songwriters stretching back to David Bowie in using her image to inspire creativity and energise performances. She understands the power of beauty to build confidence and help with self-expression.
It was this belief that led her to co-found the hair growth brand Typebea and we are delighted to say become the British Beauty Council’s new ambassador.
Bringing a wealth of experience from the music, fashion and beauty industries, she personifies the range of talent within the sector.
We think she will be invaluable in furthering the success of the British beauty industry.
A boardroom boost
The value of beauty is not just to the economy but also to the nation’s wellbeing
Recent research commissioned by us found that for many beauty and hair treatments do more for their self-esteem and happiness than retail therapy or a night bonding with friends.
The census even found that half of those asked said having a treatment made them feel as good or better than a night of passion with their partner.
Whether you’re an actor walking the red carpet, a CEO addressing staff or bride walking down the aisle, I would argue the beauty industry provides an essential life-enhancing service.
Giving finance a facelift
It’s a major milestone for the British Beauty Council, we are no longer just champions of the industry but also helping to provide investment.
We have collaborated with Venrex, the London and New York-based venture capital firm behind such successes as Charlotte Tilbury and Revolut Bank, to support the next wave of beauty founders.
The Venrex BBC Beauty 1 fund will be providing pre-seed to series A stage investments across the beauty supply chain – and is particularly aimed at women.
The beauty industry has a unique opportunity to close the fundraising gender gap in the UK, as a hub of female entrepreneurship.
In fact, £250bn could be added to the UK economy if women started and scaled businesses at the same rate as men, according to a report by Natwest.
Time to head down to John Lewis
John Lewis knows the power of beauty and that is why it is upgrading its beauty halls across its branches as part of a £800m investment in the brand.
Its flagship store in Oxford Street started the ball rolling with a major expansion, increasing in size by almost a quarter and increasing the number of brands it stocks by 15 per cent to 175.
John Lewis, like high streets and shopping centres across the country, knows that beauty is exceptional in increasing footfall to its stores and boosting revenues.
In fact, research carried out by Oxford Economics on our behalf shows that for every pound spent on hair and beauty services and products – another pound is spent on nearby businesses.
I urge people to take a wander down to its 41 beauty counters.
Millie Kendall OBE is the founder and CEO of the British Beauty Council