Wales Design Sector Grows 88% to £3.76bn GVA 2026

Key Points

• The design economy in Wales delivered a gross value added (GVA) of £3.76 billion in 2023, as stated in the Design Council’s Design Economy 2026 report.
• The GVA in terms of design in Wales experienced an increase of 88% from 2019 to 2023, which is the fastest of all nations and regions in the UK, whereas the national figure for the UK was 40%.
• Design currently contributes 4.6% of Wales’ total GVA, while its share has risen by 1.9 percentage points since 2021, which is the biggest increase of all nations and regions in the UK.
• The number of employees involved in design in Wales rose by 20% from 2020 to 2025, whereas the number of design firms was unchanged, registering a rise of only 0.8%.
• Product and industrial design is the forte of Wales as it has three out of its five local design clusters which specialize in this field of design, one of which is Wrexham.
• A warning of future challenges includes the fall in Design and Technology GCSE entries in the UK by 68% within the decade to 2024 and slow progress on workforce diversity.

Wales (Wales Times) September 14, 2026 – The design economy in Wales has recorded the fastest growth of any UK nation or region, with gross value added (GVA) rising by 88% between 2019 and 2023 to reach £3.76 billion, according to new research from the Design Council. The Design Economy 2026 report, the Design Council’s flagship tri-annual study, shows that design now accounts for 4.6% of Wales’ overall economic output, up from 2.7% in 2021.

As reported by Phillip Inman of The Guardian, the Design Council said on Monday that its analysis showed the sector had grown by 40% between 2019 and the end of 2023, beating the economy’s 23% average rate of expansion and leapfrogging the size of the retail industry. Wales and the North East of England both recorded faster growth in design GVA than London over the same period, increasing by 88% and 67% respectively, compared with 59% in the capital.

How does Wales’ design sector compare with other UK regions?

The Design Economy 2026 report reveals significant regional variation in design growth across the UK. While Wales leads with 88% growth, the North East of England recorded a 67% increase in design GVA since 2019, followed by Scotland at 32%, the East of England at 44%, and the North West at 39%. Yorkshire and the Humber saw 51% growth in design GVA between 2019 and 2023, according to separate coverage by the York Press.

Despite strong growth in Wales and other regions, the South East continues to dominate the design industry in absolute terms, contributing £43.3 billion in GVA compared with just £3.1 billion in the North East, from a UK total of £136.7 billion. The UK design economy as a whole contributed £136.7 billion in GVA in 2023, overtaking the retail sector’s £114 billion contribution and accounting for approximately 2.27 million jobs across all sectors.

Which design disciplines are strongest in Wales?

Wales shows particular strength in product and industrial design, with three of its five strongest local design clusters specialising in this discipline. Wrexham, for example, has a location quotient of 8 for product and industrial design, indicating a high concentration of activity in this area relative to the national average. Product and industrial design is also the most productive design discipline identified in the report, generating £96,200 in GVA per employee.

As reported by Business News Wales, the design workforce in Wales has grown alongside economic output, with design employment increasing by 20% between 2020 and 2025. Wales is also one of only four UK nations or regions where the number of design firms did not decline over the period analysed, further highlighting the resilience of its design economy.

What factors have supported design growth in Wales?

GVA in Wales’ design sector rose 88% while the number of Welsh design firms increased by just 0.8%, supported by initiatives such as the Social Partnership and Public Procurement Act and other place-based procurement levers that allow contracts to stay in-country. These policy mechanisms have helped create a stable environment for design businesses to grow without the consolidation pressures seen in other parts of the UK.

Cory Hughes, director of strategic design at Perago in Wales, told the Design Council: “Wales’ design economy hasn’t grown this quickly by accident. The principles embedded in the Well-being of Future Generations Act – thinking long-term, working preventatively and involving the people we serve – are also fundamental to good design.” Hughes added: “The opportunity now is to make sure this growth translates into opportunities for Welsh designers and businesses. Much of Wales’ design capability sits within small studios and consultancies, so how organisations commission and procure design will play an important role in ensuring the value generated by design continues to benefit the Welsh economy.”

Who are the Welsh designers shaping this growth?

One Welsh business demonstrating the role design can play in creating wider social and environmental value is DATI Clothing, founded by sisters Sarah and Julia Valentin. The pair have spent more than 15 years working to make sustainable fashion more inclusive and have recently helped 16 to 25-year-olds develop practical skills in fashion and upcycling through their State of Play project.

Sarah and Julia Valentin, founders of DATI Clothing, said:

“Working in sustainable fashion in Wales has given us the opportunity to be part of a close-knit community of designers who collaborate, share skills and champion one another’s work. While this collective spirit is a real strength, increasing visibility beyond Wales and into wider UK and European fashion networks remains a challenge.”

They added:

“Sustainability and education underpin our practice, most recently through our State of Play project, where we introduced 16-25-year-olds to upcycling, pattern cutting, sewing, styling and fashion design, equipping the next generation with the skills to help shape a more circular, responsible and inclusive fashion industry.”

What challenges face the UK design sector?

Despite strong growth, the Design Council report warns that future expansion cannot be taken for granted. In the UK as a whole, entries for Design and Technology GCSEs have fallen by 68% over the decade to 2024, raising concerns about the future skills pipeline at a time when businesses need design capabilities to respond to rapid technological change, including artificial intelligence.

Progress on workforce diversity also remains slow, with women accounting for only 25% of designers and Black designers making up just 2% of the design workforce, compared with 5% of the wider UK working population. Industry leaders have sought to reassure designers about the impact of AI, with firms more likely to use the technology as “the intern in the office” than as a replacement for skilled staff, according to coverage by The Guardian.

Mat Hunter, chief executive of the Design Council, said:

“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.”

Hunter added:

“What is particularly exciting is the opportunity for growth to reach every part of the UK. Stronger design capability can help cities and regions build on their existing strengths, create higher-value jobs and turn local investment and innovation into a long-term economic advantage.”

Background: How did Wales’ design economy develop?

The Design Economy 2026 report is published every three years and tracks the contribution of design across industries, places and jobs in the UK. Wales’ 88% growth in design GVA since 2019 represents an increase from £1.996 billion to £3.760 billion, the largest percentage rise of any UK nation or region. Since 2021, design’s share of total GVA in Wales has increased by 1.9 percentage points – the largest of any UK nation or region.

The Design Council says this growing contribution demonstrates the potential for design to support successful devolution, place-based innovation and community-led economic development, helping nations and regions translate investment into higher-value jobs and stronger local economies. The organisation is calling for government, businesses and public bodies to strengthen design capability and invest in regional design ecosystems and the skills pipeline to sustain this growth.

Prediction: How will this development affect Welsh designers and businesses?

The rapid growth of Wales’ design economy is likely to create both opportunities and challenges for Welsh designers and businesses in the coming years. On the positive side, the 20% increase in design employment between 2020 and 2025 suggests a growing demand for design skills in Wales, which could lead to more job opportunities, higher wages and greater career progression for local designers. The stability in the number of design firms, combined with strong GVA growth, indicates that existing businesses are becoming more productive and profitable, which could support further investment in training, equipment and expansion.

However, the challenges identified in the report – particularly the decline in Design and Technology GCSE entries and slow progress on diversity – could constrain future growth if not addressed. Welsh designers may face increased competition for talent from other UK regions, particularly London and the South East, which still dominate in absolute terms. The call from Cory Hughes of Perago for organisations to commission and procure design in ways that benefit the Welsh economy suggests that local businesses will need to be proactive in securing contracts and demonstrating their value to public and private sector clients.

The emphasis on product and industrial design in Wales, particularly in clusters such as Wrexham, could position the region as a specialist hub for high-value design work, attracting investment and skilled workers from other parts of the UK and beyond. But as Sarah and Julia Valentin of DATI Clothing noted, increasing visibility beyond Wales and into wider UK and European networks remains a challenge that will need to be overcome if Welsh designers are to fully capitalise on the sector’s growth.