Revealed: one in five UK hair & beauty businesses operating at a loss
By Rebecca Hitchon | 17 March 2026 | News & Events
The National Hair & Beauty Federation (NHBF) has unveiled the findings of its latest State of the Sector survey, revealing a ‘busy but not profitable’ hair and beauty industry.
The findings were sourced from 423 hair and beauty professionals and presented at NHBF event, Respect Live 2026 – The State of Our Sector, as part of its Respect Our Sector campaign. Panel talks discussed the industry’s future and insight was offered into the NHBF Manifesto 2026, which calls for a fairer tax system, targeted business relief and support for skills and apprenticeships.
The State of the Sector survey results show growing pressure on businesses, with rising employment and operating costs meaning that nearly three quarters of UK hair and beauty businesses are running on razor-thin margins.
Most are making only a small profit or breaking even, and 20% are operating at a loss, forcing ‘survival decisions rather than growth’. The majority of survey respondents shared that they believe their businesses will survive the next six months, but over 30% are unsure about their short-term futures.
When asked which cost areas are having the largest impact, respondents cited Increases to National Minimum Wage or National Living Wage, increases to National Insurance Contributions (NICs) and energy prices.
The UK hair and beauty sector is also preparing for measures announced in the Autumn Budget 2025 to take effect from 1 April, which most businesses surveyed are expecting to have a negative effect.
In response, 307 State of the Sector respondents said that they expect to increase prices in the next three months. Another common survival strategy is holding off on employing new staff or apprentices, with 388 hair and beauty businesses stating that they are unlikely or definitely not planning to take on apprentices in the next three months.
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This, the NHBF notes, ‘raises serious concerns about the future workforce pipeline’.
Sam Silver, head of policy & public affairs at the NHBF, comments: “These results show a sector that is working incredibly hard but operating with very little headroom. Many businesses are busy with clients yet still struggling to generate profit once rising employment costs, energy prices and other overheads are taken into account.
“The evidence also shows how these pressures are directly affecting decisions on recruitment, apprenticeships and investment. When micro-businesses are forced into survival mode, training and employment are often the first things to pause.
“That’s why NHBF is using this evidence to continue pushing government for a fairer operating environment for our sector, while also making sure businesses know that practical support and guidance is available to them now.”
The NHBF has over 1,000 years of sector experience in its team and provides industry-specific resources, including legal guidance, HR support, business advice, employment templates and helplines. Find out more at www.nhbf.co.uk
