The UK beauty industry has seen a £850 million drop in exports to the EU since the Brexit vote, according to a new report from Oxford Economics. The research, commissioned by the British Beauty Council, found that customs delays and the increased cost of cross-border trade have had a negative impact on sales.
The UK beauty industry has seen a £850 million drop in exports to the EU since the Brexit vote, according to a new report from Oxford Economics. The research, commissioned by the British Beauty Council, found that customs delays and the increased cost of cross-border trade have had a negative impact on sales.
The report, sponsored by brands such as L’Oréal and SpaceNK, compared exports of beauty products to the EU against those to the rest of the world and found a drop-off to the single market bloc, while sales held steady elsewhere. Small businesses in the sector have been “disproportionately damaged” by trade barriers, the report found, while decreased availability of EU workers has caused a skills shortage.
Millie Kendall, the chief executive of the British Beauty Council, told Bloomberg: “Covid is not the problem, Brexit is the problem. People have pulled out of territories.”
The findings echo a survey by the British Chambers of Commerce (BCC) earlier this week, which found that 49% of UK exporters have struggled to adapt to the changes required to keep exporting as they did previously, before the UK-EU trade deal. The BCC survey of 2,000 small and medium-sized exporters found that half had seen no change in the past three months, while one in four reported a decrease.
William Bain, the head of trade policy at the BCC, said: “The reality is if UK business is to thrive, then we must export more, it’s as simple as that. If we want to remain one of the world’s largest economies, then we need more firms selling goods and services internationally.”
The proportion of firms reporting decreased sales began to worsen in the run-up to Brexit and has remained stubbornly higher ever since, according to the report. Bain added: “The pandemic, supply chain disruption, Brexit, non-tariff trade barriers and global headwinds have all made this more difficult over the past few years.”
The findings of the Oxford Economics report and the BCC survey demonstrate the significant impact that Brexit has had on the UK beauty industry, with the increased cost of cross-border trade and customs delays leading to a drop in exports to the EU. Small businesses in the sector have been particularly affected, with a skills shortage caused by decreased availability of EU workers.
Sources: https://www.theguardian.com/politics/2023/oct/27/brexit-led-to-850m-drop-in-value-of-uk-beauty-industry-exports-to-eu
