10 MIN READ
Crafting success: trends in the UK’s arts and crafts businesses
According to research, arts and crafts businesses are continuing to boom.
After peaking during lockdown in 2020, interest in small, independent and locally made gifts, jewellery, candles, cards and crochets has remained steady, reaching a post-pandemic peak in 2024.
It could mean good news for the UK’s small business economy, and good news for budding entrepreneurs looking to take on a new role and start their own craft business.
If you’ve ever thought about turning your pastime into a full time career, there could be no better time to make the leap from the boardroom to the workshop. Here, AXA looks at the trends in the arts and crafts sector and what it means for the UK’s small business landscape.
Self-employment on the rise
There are 5.6m private sector businesses in the UK, but only 1.4m businesses employing staff. According to Statista, over four million of these UK businesses identified as being self-employed in 2024.
The number of self-employed businesses is driven by the side-hustle market: people making money on the side by turning their hobbies into money spinners. 43% of people in the UK said they had a side hustle in 2024 as a way of making extra money on top of their regular employment, with more than two-thirds of Gen Z making money from a side hustle (68%), more than any other generation.
However the motivation to start a business is not just related to increased income. In a recent AXA survey, The AXA Startup Report 2024, a staggering 40% of those surveyed told us that ‘being my own boss’ would be one of their biggest reasons for starting a business, reflecting the feelings of empowerment that come with building something of your own. And for 2024, the most common side businesses were being started in the arts and crafts sector.
Our research revealed that the most popular sector that people want to launch their business in is ‘arts and crafts’, followed closely by ‘online retail’ – unsurprising given the close relationship between arts and crafts and ecommerce sites like Etsy and Depop.
Most popular startup types by generation
Arts & Crafts |
Online retail |
Food & drink |
Dog walker |
Book shop |
Cafe |
|
|---|---|---|---|---|---|---|
| Gen Z | 25% | 22% | 22% | 16% | 14% | 15% |
| Millennials | 18% | 14% | 14% | 11% | 10% | 11% |
| Gen X | 17% | 16% | 12% | 12% | 10% | 8% |
| Boomers | 15% | 11% | 7% | 7% | 11% | 9% |
| Silent | 7% | 0% | 7% | 7% | 0% | 13% |
|
Arts & Crafts |
Food & drink |
|
|---|---|---|
| Gen Z | 25% | 22% |
| Millennials | 18% | 14% |
| Gen X | 17% | 16% |
| Boomers | 15% | 7% |
| Silent | 7% | 9% |
Explaining the rise in arts and crafts
So why the rise in arts and crafts related business? One explanation could be found in the 2020 pandemic.
As many people in the workforce were furloughed, working from home or otherwise staying indoors during 2020, people were looking for ways to keep active, stay motivated and make money. People searching online for home-based crafts like candle making and jewellery making – fun, hobby-based activities which could be done from the home – saw an increase during this time, peaking after November 2020 and the announcement of England’s second lockdown.
Highest Peak in Lockdown 2020
November 2020,
second lockdown announced
February to May 2021,
lockdown restrictions eased
December 2021,
UK Government announces beginning of ‘Plan B’ restrictions in the wake of Omicron variant
Since the peak of the 2020 and 2021 lockdowns, the search volume for craft businesses has slowly been increasing again from April 2022 to the present day, spiking around December over the last three years as people search for Christmas gifts.
So the covid pandemic increased people’s online searches for arts and crafts terms online, but the rise of arts and crafts focused businesses was also meeting customer demand for handmade gift items. The number of people searching for “homemade gifts near me” has increased by 6%, showing there is demand as well as interest.
Etsy, one of the leading sites for small independent craft business owners, also noted a 238% YoY increase in searches on Etsy for ‘handmade gifts’ in the first quarter of 2024. So while people may have started their businesses to stave off boredom during lockdown, they’ve also tapped into a lucrative and growing demand for locally made gift items you can’t find anywhere else.
Which businesses are being the most crafty?
‘Arts and crafts’ is a broad church, encompassing many different types of small local business. So which crafters are seeing the biggest surge in popularity?
Looking at searched on eBay for the term ‘handmade’ reveals over 2.6 million results, with the most popular results being:
- Jewellery and watches 25%
- Clothes, shoes and accessories 21%
- Home décor 15%
eBay handmade categories
- Jewellery and watches
- Clothes, shoes and accessories
- Art
- Home decor
- Celebrations and occasions
- Pottery, ceramics and glass
Similarly on Etsy, the results broadly match, with home and living items, jewellery and paper and party supplies (like homemade cards) being most sought after.
From these searches it’s clear that jewellery, art, clothing and cardmaking businesses are some of the most popular craft businesses in the UK. However, a new trend is also being sewn in 2024.
Etsy handmade categories
- Home and living
- Jewellery
- Paper and party supplies
- Accessories
- Craft supplies and tools
- Art and collectables
Crochet is rapidly growing in popularity in search volume and social media hashtags. It’s currently the 4th most popular shop on Etsy, and is dominating TikTok hashtags.
Another indicator of increased interest in crochet businesses, again, is search volumes on Google. When looking at the keyword “best wool for crochet”, the search volume has increased by 22% since last year, showing more and more people are looking to craft their futures in crochet.
Crochet, it seems, is now a popular style trend particularly younger age groups and Gen Z thanks to its sustainability, versatility and because the homemade, DIY appeal. Rather than buying the same dress that 100 other people could be wearing, crocheting your own provides a one-of-a-kind uniqueness which fashionistas are craving in 2024.
So if you’re thinking of getting into arts and crafts as a side hustle turned main revenue stream, the future could be in crochet.
How to start your own craft business
If you’ve looked at the rise of arts and crafts businesses in the UK and thought it presented a good money making opportunity or side hustle idea, you’re clearly not alone. More and more people are joining the trend and picking up the knitting needles.
So if you’d like to join them, follow our steps below to starting an arts and crafts business.
Find your niche
As we’ve seen, there’s money to be made in the arts and crafts industry, but that also means it’s a crowded market with stiff competition to stand out.
Do some research – is the type of product you’re looking to create popular? Who are your competitors? And how do you set yourself apart?
If your product is unique, you’re in a good position to ensure clear water between you and anyone else. If your business is doing something no one else has thought of, is it unique enough to patent? This is not always easy (or cheap) and can require expert legal support. Have a look at the government’s guidelines before embarking on this route.
If your product is more common, like scented candles for example, look at ways to differentiate yourself. What scents can you create than no one else is trying? Can you price differently than your competitors?
Knowing who you’re up against will help you plan accordingly to be competitive in a crowded market, so look around and see where you fit in the landscape before getting started.
Create a brand identity
One other way to ensure you stand out in a crowded market like arts and crafts is through your brand identity.
Brand identity is the look and feel of your business. It’s as simple as choosing a business name, a logo, and a personality for your small business. From your product designs to your website to how you interact with customers, it all contributes to a strong brand identity.
Being recognisable and memorable is key to success for a small business. Choose eye catching colours, typography, audio, video and imagery that will represent your brand. When speaking to customers, either in person or online, be consistent in your tone of voice. And make sure your identity is consistent across your website, social media, in store or online.
Use social media
For arts and crafts businesses, social media is a powerful way for people to find your products and follow your brand.
On social media in 2024, punch needle art went viral, with the hashtag #punchneedle generating 974 million views on TikTok and over 884,000 posts on Instagram.
Whether it’s capitalising on the latest TikTok trends, selling your creations on Instagram or Facebook, or engaging with fellow artists on Threads, social media presents a massive opportunity to grow your brand, build a following and engage with your customers.
Make connections
For any small business owner, a daunting but necessary part of the job is networking. From connecting you with new clients to raising the profile of your company, there’s a whole host of benefits to making the right connections.
For arts and crafts businesses, meeting the right connection could open the door to new suppliers, new shops willing to stock your products, or new ways to meet customers.
Craft fairs, designer markets and stalls selling handmade gift items are all becoming trendy and a common sight in towns around the country, and you never know what connections you may be able to make by striking up a conversation with the right person.
Do some admin
Sometimes, the best way to start is to get the admin right first. When it comes to starting a business, there are a lot of things to consider before you make your first sale.
Consider the structure of your business, any licenses you may need, and registering as self employed early. Get these tasks out of the way early and Future You will thank you.
- Choose your structure: sole trader or limited company?
- Check you’ve for the right business licences and certificates
- Contact HRMC and register your side hustle
- Get business insurance – more on this below…
For more information, follow AXA’s Complete Guide to Starting a Business
Insurance for craft businesses
It’s crucial to invest in insurance coverage for your arts and craft business. Even if you’re just making some items at home to sell on Etsy in your spare time, insurance is a valuable tool to have in your back pocket.
The type of cover you’ll need will depends on the type of arts and crafts business you’re operating. For example, someone making jewellery at home could be working with some metals and machinery, and may require different levels of cover than s calligrapher or candle maker.
Some of the most common covers include:
Public liability insurance
Protects you from claims made from third parties as a result of using your product or dealing with your business. For example, if someone trips and falls at your market stall while sampling your product.
Employers’ liability insurance
If you have anyone working with your or helping your out as part of your business, you need Employers’ liability insurance by law. This includes any part time staff, temporary staff or volunteers.
Contents cover
Contents cover will protect your products, stock, studio, equipment and materials if they get damaged or stolen, such as your supplies and the products you make and sell.
Find more information here about the types of insurance available for arts and crafts businesses.
Protect your business with AXA and Future You will thank you
If you’re ready to start your own business and make your hobby into a money spinner, AXA is there for you if the worst should happen.
With a range of covers you can tailor to your own business’ needs, get covered today and Future You will be thankful.
All links are checked and valid at time of publishing, 13 January 2025.