Competition across UK beauty retail continues to ramp up, as brands work to enter new spaces and stores push to draw in new custom. But where exactly is the market headed in 2025?
Growth despite cost-of-living crisis
Last year, the UK health and beauty market continued to grow despite the ongoing cost-of-living crisis, hitting EUR 53.6 billion (about GBP 45.4bn) after three years of consistent growth, according to data analytics firm GlobalData. Within this, beauty was forecast to continue growth at 3% CAGR between 2023 and 2028, led by fragrance and cosmetics; sectors set to surge by 16% and 17%, respectively, during this same period.
Mintel estimates matched – indicating UK beauty spending was up 3.8% in 2024, representing EUR 7.75 billion (GBP 6.45 billion) for the full year.
Tash Van Boxel, retail analyst at GlobalData, said the market had shown consistent growth largely due to the “essential nature” of beauty, ensuring sustained demand despite high inflation. The ’lipstick effect’ had also been in full swing, Van Boxel said, with consumers treating themselves to…
