October 3, 2025
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Inflation is on the rise around the world, with the UK inflation rate hitting 10.1% last month – a 40-year high. Several factors have contributed to the rising inflation, chiefly higher food and energy prices in the wake of the COVID-19 pandemic and Russia’s invasion of Ukraine. The price of raw materials have also increased, driving prices higher in many sectors such as manufacturing and hospitality.

The cost-of-living crisis means higher prices for many everyday essentials and as wages are not increasing in line with inflation, many people will need to reduce their spending on non-essentials. This is likely to affect businesses, in particular those offering non-essential goods or services. This article will examine how the UK beauty industry is being impacted by rising inflation.

Challenging Covid-19 Recovery

The beauty industry had an incredibly challenging period during the Covid-19 pandemic, due to lockdowns and government restrictions. As a consequence, beauty saw a huge boom last year when restrictions were eased and customers were finally able to return to salons. However, many businesses are still struggling to recoup their losses from the last two years and now face a new hurdle to overcome.

Is Beauty Worth the Investment?

Reduced consumer spending on non-essentials means that beauty treatments, products and services become a luxury for most people. While many people may want to continue with regular beauty treatments or have their hair or nails done regularly to boost their self-esteem, for households facing astronomical energy bills over the winter, these little luxuries may simply be out of the equation.

The rise of home beauty treatments, which began during 2020, is likely to continue with people once again forgoing salon visits. Mobile hair and beauty providers may be able to continue to offer lower prices due to reduced overhead costs, but increased fuel and product costs are likely to mean many beauticians will need to raise prices regardless of whether they offer mobile or in-salon treatments, further affecting whether or not customers can afford their services.

How Businesses Can Maintain Bookings

To keep their beauty business afloat during these difficult times, it is key that salon owners promote the most essential of their many treatments and services, particularly those that are difficult to do at home, for example, haircuts, waxing, and acne treatments. Treatments that are focused on health and wellbeing are a new consumer priority since Covid so salon owners need to emphasise the benefits of these types of procedures such as massages and facials.

Salons can also ensure they’re offering a top-quality service and make existing treatments seem even better value by using the best possible products like eyebrow wax strips, and adding in little extras such as a free scalp massage with every haircut. This will ensure that consumers feel their money is being well-spent, and that they are getting a suitably luxurious treatment in return.

What to Expect in 2023

There are suggestions that inflation could rise to 15% at the start of next year so it is important for salon owners to be prepared by predicting realistic costs and budgeting accordingly to avoid nasty surprises, particularly when it comes to rising energy bills for their salon.

It is expected that the consumer focus on health will remain, especially throughout winter with people looking for treatments that will help them feel better during the cold, dark months, so these should be a priority for beauty business owners. Salons should also offer essential treatments at affordable prices where possible to try to maintain good relationships with loyal customers. Even in trying financial times, people still want to look good and need basic beauty treatments for healthcare and wellbeing, so salons are likely to see reduced rather than zero spending in the coming months.