UK beauty industry misses out on £2.7bn per year by failing to cater to multi-ethnic customers

The UK beauty industry is missing out on £2.7 billion per year by failing to cater to multi-ethnic customers, revealed The Black Pound Report 2022: A Study of the Multi-Ethnic Consumer, which looks at the spending power, untapped potential and profitability of the UK’s black, Asian and multi-ethnic consumer base. 

Multi-ethnic consumers spend £230 million per month on health and beauty, yet, four in 10 say they struggle to find cosmetics and skincare to suit them, resulting in the beauty industry losing out on a huge £2.7 billion per year. 

Not to mention that multi-ethnic consumers spend 25% more on health and beauty than other consumers, the report found, and eight in 10 multi-ethnic consumers are likely to recommend a brand to friends and family if they were impressed by it.

Unsurprisingly, more than half (59%) of black, Asian and multi-ethnic customers said they’re more likely to purchase products from a brand with an inclusive product range, but still find the current offerings are lacking.

There are 68.2 million people living in the UK and 44% of that figure are from black, Asian and multi-ethnic backgrounds. 

“When there is an audience spending £2.7 billion every year on health and beauty products, demonstrating that they want to spend their money with businesses on their high street, why on earth would brands not want a slice of that pie?", asks Lydia Amoah, founder and chief executive of Backlight, which created and published the Black Pound Report 2022. 

The collective average monthly disposable income of the multi-ethnic consumer is £375m, equating to an annual disposable income of 4.5 billion, “making it one of the world’s most exciting and untapped audiences,” it says in the report.

The professional beauty industry is making strides when it comes to inclusivity, with just last week The Black Skin Directory launching an education platform to teach beauty professionals how to treat skin of colour, but there’s still a lot more than can be done. 

Armed with the knowledge of how excluded multi-ethnic customers can feel, the report aims to help businesses to engage with the untapped market and make your brand a more inclusive place.

You can buy the Black Pound Report 2022 now

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