New SIC Codes for Hair, Beauty and Spa: What This Means for Your Business
A Landmark Change for the Beauty Industry
After seven years of sustained lobbying, the British Beauty Council has secured the first update to the beauty industry’s Standard Industrial Classification (SIC) codes since 1948.
This is more than an administrative update. It is a structural shift that finally defines and legitimises the hair, beauty, and spa sectors at Government level.
For decades, the industry sat under a single broad code, grouped alongside unrelated “other personal services” such as laundry and funeral services. This outdated classification failed to reflect the modern, highly skilled and diverse industry that exists today.
The result? An entire sector that has been consistently underrepresented politically, economically, and socially.
Why SIC Codes Matter More Than You Think
SIC codes are how governments and official bodies define what businesses do. They underpin how economic data is collected, analysed, and interpreted.
In simple terms, they shape:
How big an industry appears
How it is understood
And ultimately, how it is supported
The beauty industry contributes £30.4 billion to UK GDP, accounting for around 1.1% of total GDP. That is larger than the Creative Arts and Entertainment sector.
Yet without accurate classification, that contribution has not been properly recognised. This is why reform was needed.
The Pandemic Highlighted the Problem
The limitations of the old SIC codes became particularly visible during the COVID-19 pandemic, because hair, beauty and spa businesses were grouped under broad and often inaccurate classifications, which created confusion at Government level about how the sector actually operated. This affected how restrictions were applied, how reopening decisions were made, and how different parts of the industry were understood.
At the time, several industry bodies worked alongside Government to provide clarity on the realities of day-to-day operations within the sector. This highlighted just how much the existing classification system failed to represent the industry accurately.
That experience helped reinforce the need for change.
Without clear definitions, it becomes difficult for policymakers to make informed decisions. The pandemic brought that into sharp focus, and has ultimately contributed to the continued push for reform.
The New SIC Codes Explained
The industry is now grouped under a new, more accurate classification:
962 – Hairdressing, beauty treatment, day spas and similar activities
Within this, three distinct categories now exist:
9621 – Hairdressing and barber activities
9622 – Beauty care and other beauty treatment activities
9623 – Day spa, sauna and steam bath activities
For the first time, hair, beauty, and spa are recognised as separate sectors within official government data.
This is an important shift.
It means each part of the industry can now be measured, understood, and supported based on what it actually does, not as part of a vague, catch-all category.
Why Including Spa Matters
One of the most important elements of this update is the clear inclusion of spa and wellness businesses.
Previously, spa activity was either buried under general beauty or loosely categorised under “physical wellbeing”. Neither reflected the scale, structure, or economic contribution of the spa sector.
With 9623 now specifically recognising day spas, saunas, and steam-based services, spa is no longer an afterthought.
It is a defined and visible sector in its own right.
What This Means for the Industry
This change gives the industry something it has lacked for years: accurate data.
And with accurate data comes:
Better policy decisions
More relevant support and funding
Stronger industry representation
A clearer understanding of the workforce and economic contribution
It also allows organisations like the British Beauty Council to advocate more effectively, because each sector can now be assessed individually rather than as part of a blurred whole.
A Global Shift, Not Just UK-Based
This isn’t just a UK update.
As part of this work, changes have also been approved within:
ISIC (International Standard Industrial Classification)
NACE (European classification system)
These frameworks influence how global and European data is collected.
This means the beauty, hair, and spa industry is now being recognised more accurately, not just nationally, but internationally.
What It Means for Your Business
For most business owners, there is no immediate action required.
If you run a limited company:
You may update your SIC code at your next Confirmation Statement
You can choose the classification that best reflects your services
If you are a sole trader:
No action is needed
But you still benefit from improved industry representation
Importantly, this change allows professionals — including the self-employed — to define their work more accurately in official systems.
A Shift Towards Recognition and Credibility
This is about more than codes. It is about the industry being recognised as:
Skilled
Diverse
Economically significant
Worthy of policy attention and investment
As Mille Kendall OBE, CEO of the British Beauty Council, explains, this reform ensures the industry is properly represented and supported as it navigates its unique economic challenges.
What Happens Next?
Implementation will take place in phases across:
The Office for National Statistics (ONS)
Government Statistical Service systems
This means changes will be gradually reflected in how data is collected and reported over time. But the direction is clear. The industry is now being defined properly, and that changes how it will be valued moving forward.
