Wales Design Economy Surges 88% in Four Years

Key Points

• The design economy in Wales increased by 88% from 2019 to 2023, the fastest increase among all regions of the UK.
• The contribution made by this sector was £3.76 billion in GVA in 2023, which constitutes 4.6% of the total GVA in Wales.
• Design employment in Wales increased by 20% from 2020 to 2025 compared to 3% increase in London in the same period.
• Wales is one of only four UK regions in which the number of design businesses increased during the research period.
• Wrexham has become a prominent design center with a location quotient of 8 for product and industrial design.
• The total contribution of the design economy in the UK was £136.7 billion in GVA in 2023, surpassing that of the retail industry (£114 billion).
• Currently, around 80% of designers work in industries other than design, making the design capability embedded in manufacturing, healthcare, engineering, and finance sectors.
• The Design Council is calling for policy interventions such as regional design growth centers and a national skills pipeline.

Wales (Wales Times) September 11, 2026 – Wales has recorded the strongest design economy growth of any UK nation or region, with an 88% increase in gross value added (GVA) between 2019 and 2023, according to the Design Council’s flagship Design Economy 2026 report. The sector now contributes £3.76 billion annually to the Welsh economy, accounting for 4.6% of total economic output, and has been accompanied by a 20% rise in design-related employment between 2020 and 2025.

What drove Wales’ 88% design economy growth?

As reported by staff at Nation Cymru, the Design Council’s research identifies Wales as the fastest-growing design economy in the UK, with GVA rising from an estimated £2 billion in 2019 to £3.76 billion in 2023. The South Wales Argus noted that this growth has been matched by a 20% increase in design employment between 2020 and 2025, significantly outpacing London’s 3% workforce expansion over the same period.

Mat Hunter, chief executive of the Design Council, stated: “These figures should change the way we think about design. It is not a niche creative activity sitting at the edge of the economy; it is a £136.7 billion capability embedded in the way organisations effectively innovate, tackle complex problems and grow”. In Wales, three of the top five design clusters specialise in product and industrial design, with Wrexham identified as a key hub with a location quotient of 8.

The resilience of Wales’ design sector is further underscored by the fact that it is one of only four UK nations or regions where the number of design firms did not decline during the period studied. This stability has been supported by targeted Welsh Government policies, including the Social Partnership and Public Procurement Act, which prioritises keeping contracts within the country.

How does Wales compare to other UK regions?

Design Week reported that while London and the South East continue to generate almost half of total UK design GVA (£66.7 billion combined), regional employment growth is significantly outpacing the capital. Between 2020 and 2025, design employment grew by 25% in the East Midlands, 23% in the South West, 22% in the North East, and 20% in Wales, compared with just 3% in London.

In terms of GVA growth since 2019, Wales’ 88% increase leads the UK, followed by the North East (67%), the East of England (44%), the North West (39%), and Scotland (32%). Yorkshire and the Humber recorded 51% growth, contributing £7.7 billion in GVA in 2023.

Professor Mariana Mazzucato, founding director of the UCL Institute for Innovation and Public Purpose, emphasised that design acts as a catalyst for broader structural transformation. “Design increasingly demonstrates that it is not merely another productive sector,” she said. “It is a strategic capability that shapes how products are made, services are organised, technologies are governed, institutions operate and places develop”.

What is the UK-wide design economy picture?

The Design Economy 2026 report reveals that the UK design sector contributed £136.7 billion in GVA in 2023, representing 5.5% of total UK economic output. This marks a 40% increase since 2019, nearly double the 24% growth seen across the wider UK economy during the same period.

Design activity now generates approximately £1 in every £20 across the UK, surpassing the £114 billion retail sector and nearly doubling the £70 billion accommodation and food service industry. Crucially, two-thirds of design GVA (£90.6 billion) is generated by designers working outside specialist design agencies, in fields such as manufacturing, healthcare, engineering and finance.

Digital design remains the primary engine of growth, generating £81 billion in GVA (a 50% increase since 2019) and employing 1.09 million professionals. Product and industrial design contributed £21.6 billion (up 33%), architecture and the built environment £18.4 billion (up 30%), and clothing design £400 million (up 45%).

What challenges threaten future growth?

Despite record economic figures, the Design Council warns that future growth faces critical vulnerabilities. Secondary education entries for Design and Technology (D&T) GCSEs fell by 68% over the decade to 2024, threatening the long-term talent pipeline just as industry demand for advanced design skills accelerates.

Tony Ryan, chief executive of the Design & Technology Association, called for immediate action in schools:

“Rebuilding the design talent pipeline starts in our schools. Our Regional Membership Initiative connects education, industry and communities, inspiring more young people to see design, innovation and engineering as exciting career pathways”.

Workforce diversity also remains severely lagging. Women account for only 25% of the overall design workforce, dropping to just 9% in product and industrial design. Black designers represent 2% of the workforce compared to 5% of the wider UK working population, while disabled designers account for 16% compared to 18% nationally.

Alisha Morenike-Fisher, founder of Black Females in Architecture, underscored the need for systemic change:

“Talent exists everywhere, but opportunities do not. I look forward to the day when Black women can look across London’s buildings, landscapes, and public spaces and see themselves reflected in the city”.

What policy interventions are being proposed?

To address structural challenges and maintain the UK’s competitive edge, the Design Council has outlined five policy asks for government:

• Regional Design Growth Hubs: Establish regional hubs led by Mayoral Strategic Authorities to connect local businesses and public services with design expertise.
• Industrial Strategy Recognition: Explicitly integrate design as a core innovation capability across national R&D, commercialisation programmes, and public procurement frameworks.
• National Skills Pipeline: Fund early careers engagement and establish the Design Council Learning Lab to train designers in AI, green design, and systems thinking.
• Targeted Export Support: Create tailored international trade programmes and practical IP support for design SMEs entering global markets.
• National Design for AI Adoption Challenge: Launch a national initiative demonstrating how human-centred design can drive ethical, sustainable, and effective AI deployment across public and private sectors.

Ian Murray MP, Minister of State in the Department for Digital, Culture, Media and Sport, added that design supports regional economic strategies:

“This is a story that extends beyond London. Across the UK, design supports local economies, creates high-value jobs and helps places build distinctive strengths”.

Background: How did Wales’ design economy develop?

The Design Council’s Design Economy report is published every three years, with the 2026 edition representing the most comprehensive analysis of design’s contribution to the UK economy to date. Wales’ 88% growth since 2019 builds on a foundation of targeted policy interventions, including the Social Partnership and Public Procurement Act, which has helped retain design contracts within the country.

The Welsh Government has increasingly positioned the creative and design sectors as central to its economic strategy, with initiatives focused on advanced manufacturing, digital technology, and creative industries. Wrexham’s emergence as a design hub with a location quotient of 8 reflects concentrated investment in product and industrial design capabilities, particularly in sectors aligned with Wales’ traditional manufacturing strengths.

The UK-wide context shows design overtaking retail as the biggest contributor to the national economy, with the sector now responsible for £1 in every £20 generated across the country. This structural shift has been driven by organisations embedding design capabilities in-house to drive strategic transformation and product development, with 80% of designers now working in non-design industries.

Prediction: How will this affect Welsh businesses and workers?

The sustained growth of Wales’ design economy is likely to create significant opportunities for Welsh businesses and workers over the next decade. With design employment already rising by 20% between 2020 and 2025, continued expansion could see the sector become a major source of high-value jobs, particularly in product and industrial design where Wales has developed specialised clusters.

For Welsh businesses, particularly in manufacturing, healthcare, engineering and finance, the embedding of design capability offers a pathway to innovation and competitive differentiation. As Jane Geraghty, global CEO of Landor and WPP Brand & Design, noted: “More differentiated brands grow faster, so when UK businesses invest in creating that difference, design doesn’t just strengthen individual brands; it helps power the wider economy”.

However, the 68% decline in Design and Technology GCSE entries over the past decade poses a significant risk to sustaining this growth trajectory. Without targeted interventions to rebuild the skills pipeline, Welsh businesses may face shortages of design talent just as demand accelerates. The Design Council’s call for regional design growth hubs and a national skills pipeline, if implemented, could help Wales maintain its position as the UK’s fastest-growing design economy while ensuring that growth translates into inclusive, high-quality employment opportunities across the nation.