Brexit has had a significant adverse impact on the UK’s beauty sector, resulting in the loss of up to £850 million in exports due to customs delays and increased cross-border trade costs.
A comprehensive report conducted by the British Beauty Council in partnership with Oxford Economics scrutinized exports to both the European Union (EU) and the rest of the world (ROW). The findings revealed a stark contrast, with ROW exports maintaining stability while EU exports experienced a noticeable decline.
This study, reported by The Guardian and Bloomberg, underscores the disproportionate impact on small businesses within the sector, which represent a significant portion of trade. These enterprises have been disproportionately affected by the new trade barriers that emerged post-Brexit, in addition to changes in regulations concerning EU workers in the UK, leading to a shortage of skilled labor.
While the challenges posed by the COVID-19 pandemic also played a role, the report makes a clear distinction between the decline in exports to the EU and those to ROW, even when accounting for the pandemic’s effects.
UK exports of cosmetics and personal care products to the EU showed a positive trajectory between 2010 and the year of the Brexit vote in 2016. However, this trend has reversed since then.
Millie Kendall, CEO of the British Beauty Council, emphasized that «Covid is not the root of the issue; Brexit is the challenge. Many businesses have withdrawn from these markets.»
These findings echo the results of a recent report by the British Chambers of Commerce, revealing that nearly half of UK exporters are struggling to adapt to the changes required to continue exporting under the UK-EU trade deal.
