What Does a Hike in Inflation Mean for the Beauty Industry?

Thanks to plane fares and rising food costs, according to the ONS, UK inflation rose to 3% in January. With the rate higher than predicted by analysts, BABTAC (The British Association of Beauty Therapy & Cosmetology), warns that there will be implications for the beauty industry, which may risk consumer safety.

• Consumer safety is also at risk as people opt for cheaper treatments at under-regulated premises.
• If inflation continues to rise, the industry is likely to see an influx of business closures.

Business closures and risk to consumer safety. What the cost-of-living crisis means for the beauty industry

Thanks to plane fares and rising food costs, according to the ONS, UK inflation rose to 3% in January. With the rate higher than predicted by analysts, BABTAC (The British Association of Beauty Therapy & Cosmetology), warns that there will be implications for the beauty industry, which may risk consumer safety.

The impact of rising energy bills

Speaking to its members, BABTAC found that 93.58% of salon owners had already seen a considerable increase in utility rates over the past two years. 10% of these faced a 200% increase, 40% a 100% increase and 44% a 50% increase. These increases have ultimately already impacted consumers as treatment prices have risen as a result

Lesley Blair MBE, CEO and Chairperson of BABTAC says, “Rising inflation affects everyone and is of course a huge concern for many beauty businesses. Although some government help to support rising energy prices has been available, we’re hearing from our members that despite this, the hike in inflation is just another blow to those who have already had to contend with negative impacts of the recent cost of living crisis which has resulted in beauty professionals losing thousands in earnings.

Low consumer confidence in the economy is resulting in lost custom which could mean business closure

It’s not only rising costs that are affecting beauty businesses, but also consumer spending - with news of price hikes looming for consumers, according to Dija Ayodele, Aesthetician, and founder of West Room Aesthetics, people are less likely to invest in luxuries such as beauty treatments.

“We operate in the lifestyle sector of the economy meaning that beauty is one of the first things to cut if the cost of living is high,” she says. “Many business owners that I speak to, are already facing unforeseen mounting bills and are having to increase prices, resulting in cancellations from regular customers with some facing the prospect of job losses and even imminent closure should the situation not improve”

Safety risks for consumers as they opt for cheaper, unregulated treatments

With purse strings tightening, there are also concerns that consumers may decide to book in for low-cost treatments with non-accredited establishments that pose risks to their safety or attempt at-home DIY beauty.

Dija Ayodele says, I worry that because of dropping confidence in the economy, consumers will opt for cheaper treatment solutions that may pose risks to their health.”

Lesley Blair MBE agrees and says, “You pay for standards and unfortunately cheaper treatments could potentially means cheaper quality, be this in terms of qualification, products, or insurance. The concern is that with the price of treatments increasing, consumers will instead seek out lower cost alternatives or DIY treatments and with so much of the beauty industry largely unregulated, it’s more important than ever to do proper research before trusting a therapist or buying a DIY beauty treatment. If something seems too good to be true it often is, so we strongly recommend if you have any doubt to seek a professional’s advice."