EST 1994
We’ve analysed the latest data and trends shaping the UK hair, beauty and nail salon industry to bring you a comprehensive overview of where the market stands in 2025. From economic impact and consumer behaviour to emerging business models and regional opportunities.
This report brings together key insights to help salon owners, investors and industry professionals understand the forces driving growth and the challenges ahead. Whether you’re planning to expand, refine your service offering or simply stay informed about the competitive landscape. This will provide the essential market intelligence you need to make confident, strategic decisions.
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Table of contents
Economic Impact
- With over 51,000 businesses operating in 2025, the Hairdressing & Beauty industry remains highly competitive, and continued growth reflects strong entrepreneurial activity and demand for specialist services. Source: IBISWorld
- The beauty generated a total GDP contribution of £30.4 billion in 2024, rising 9% from the previous year. Growing over four times faster than the UK economy overall. Source: The British Beauty Council
- The Hairdressing & Beauty industry is expected to reach £5.7 billion in 2025, growing at a rapid 9.5% CAGR over the past five years. Showing that consumer demand for salon services has remained resilient even as many households cut back on non-essentials. Source: IBISWorld
- In 2024, the beauty industry supported £8.6 billion in tax contributions. This represents 0.4% of all UK public spending. Source: The British Beauty Council
Market Growth
- The hair market increased from USD 2.05 billion in 2018 to USD 2.31 billion in 2024, and is forecast to reach USD 3.72 billion by 2032, expanding at a 6.13% CAGR. This reflects strong, ongoing demand for professional hair services across the UK. Source: Credence Research
- Over the past two years, beauty spending has grown faster than overall consumer spending. In 2025, it is forecast to rise by 3%, reflecting ongoing demand for beauty products and services. Source: The British Beauty Council
- An 8% rise in household spending on personal care in 2024 fuelled the sector’s rapid expansion, despite wider economic pressures. Source: The British Beauty Council
Trade Performance
- Beauty and personal care products accounted for 1.3% of all UK goods exports, with 70% sold to European single market countries. Ireland, Belgium, the USA, Germany and the Netherlands were the top destinations. Source: The British Beauty Council
- Export volumes to the EU single market have fallen 5.9% annually since 2021, and this decline has not been offset by growth in non-EU markets, which have also fallen 4.4% annually. Source: The British Beauty Council
Regional Distribution
- Higher disposable incomes, a dense population and the city’s role as the UK’s fashion and trends capital make London the strongest market for premium and luxury salon services. Source: IBISWorld
- Cities such as Manchester, Birmingham, Glasgow, Edinburgh, Cardiff and Belfast are seeing strong demand growth due to rising urbanisation, younger populations and digital-savvy consumers, making them attractive for expansion. Source: Credence Research
Market Structure
- The UK market is dominated by small, owner-operated salons, leading to intense competition as businesses differentiate through personalised service, niche treatments and specialised expertise. Source: IBISWorld
- Around 58% of workers in the sector are self-employed, demonstrating the continued shift toward chair rental, room rental and freelance beauty practitioners. Source: NHBF
- The beauty sector’s workforce saw an 11% year-on-year increase in 2024, reaching 496,000 employees. This figure not only surpasses the pre-pandemic peak of 478,000 in 2019 but also makes the beauty industry a larger employer than sectors such as publishing, broadcasting, utilities, and telecommunications. Source: The British Beauty Council
Consumer Segments
- Female clients generate 60 – 62% of salon revenues, outspending men significantly. Male clients hold 38 – 40%, and their share continues to grow with increased interest in grooming, styling, and scalp-health services. Source: Credence Research
- More men are prioritising personal appearance, leading to increased spending on barbershop visits, grooming and styling services, which is helping boost revenues across the sector. Source: IBISWorld
- Platforms like TikTok, Instagram and YouTube have made consumers more beauty-conscious, inspired new styles and increased pressure to maintain appearance, driving visits for haircuts, colouring, skincare and nail services. Source: IBISWorld
- Online tutorials and influencer content have made DIY styling more accessible, but salons continue to attract clients by offering professional quality, advanced treatments and skilled techniques that are difficult to replicate at home. Source: IBISWorld
Service Categories
- Traditional hair services including cuts, blow-dries, colouring and smoothing treatments still account for the biggest share of industry revenue, forming the economic backbone of UK salons. Source: IBISWorld
- While manicures remain the biggest category (≈32%), UV gel overlays and extensions are the fastest-growing service worldwide, with a projected 9.5% CAGR. Growth is fuelled by social media, influencer culture, and demand for long-lasting, expressive nail looks. Source: Grand View Research
- Demand is rising for precision colouring, keratin smoothing, personalised scalp care, and advanced wellness treatments, supporting higher price points and stronger revenue per client. Source: Credence Research
Business Models
- Full-service salons dominate the sector, supported by strong demand for cutting, colouring, styling and advanced treatments. Premium salons are growing fastest as consumers seek bespoke, wellness-infused and luxury experiences. Source: Credence Research
- Mobile stylists, at-home salons and hybrid spaces offer flexible, lower-cost service models, appealing to time-poor clients and price-sensitive consumers while expanding the industry’s reach. Source: Credence Research
- Salons increasingly sell professional haircare and styling products, offering complete ‘service + retail’ experiences that drive loyalty and increase spend per visit. Source: Credence Research
Technology Adoption
- Tools like Fresha, Calendly and other online scheduling systems are becoming essential, helping salons reduce no-shows, manage labour shortages and improve operational efficiency in a challenging cost environment. Source: IBISWorld
- Salons are competing based on technical ability, advanced product knowledge and high-quality service delivery, with stylists and beauticians investing heavily in up-skilling to justify premium pricing. Source: IBISWorld
Industry Challenges
- Salons face high employee costs, inflationary pressures, VAT limitations, and ongoing difficulty recruiting skilled professionals. Pushing operators to focus heavily on efficiency and differentiation. Source: Credence Research
