UK food and drink manufacturers urge Government to support industry’s ambitions
As a new research exposes the sector’s £37 billion contribution, UK food and drink makers are asking the government to support the industry’s growth objectives.
A new report from the Food and Drink Federation (FDF) reveals that, according to the latest ONS data, the food and drink manufacturing sector grew 17.9% over a decade. The industry now contributes £37bn to the UK economy, accounting for almost a quarter (24.2%) of total UK manufacturing turnover.
The Powering Communities report reveals that this significant economic contribution stretches across communities in every UK region and nation. For example, it makes up almost a third (30.8%) of total manufacturing GVA in Scotland and a fifth in the East Midlands (20.6%) and Northern Ireland (20.2%).
The report also reveals the food and drink manufacturing sector’s role as a major employer, providing almost half a million (486,500) jobs in the UK’s 12,195 food and drink businesses. Employment in the sector is growing, with 41,000 new jobs across the UK since 2018. The number of food and drink manufacturing businesses in the UK also rose 14% between 2019 and 2024.
Significant investments in robotics and automation, as well as R&D and innovation to create healthier products, have all helped to drive this growth. And, there is still more growth for the taking. At the end of last year, FDF revealed that there is an untapped £14bn productivity opportunity for the sector, which could be unlocked through investments in automation, digital technology and AI (source: Future Factory report, Newton)..
However, according to the latest FDF State of Industry report, with the sector facing a host of impending challenges, maintaining this growth is by no means certain. Food and drink business confidence declined to -47% in Q4 2024(source: FDF State of Industry report Q4 2024) on account of growing inflationary pressures, barriers to trade, and upcoming Extended Producer Responsibility (EPR) fees for packaging.
To ensure the sector’s future health, FDF is urging government to take decisive action to address barriers to growth. These include low investment in innovation, falling food and drink export volumes and lack of access to highly skilled talent.
Jim Bligh, director of corporate affairs, communications and packaging, FDF said the industry is vital to ensuring it has a thriving food system in the UK, providing high-quality, affordable food. And we are a major part of the UK’s wider manufacturing sector, offering good careers, driving investment, and promoting international trade. Food and drink manufacturing is uniquely placed to make a positive impact in every village, town and city in every constituency in the country.
“But with food and drink businesses under increasing pressure, we’ve reached a pivotal moment where government must act to safeguard this foundational sector’s future growth and the UK’s food security. We’ve set out more than 40 steps government can take to remove unnecessary roadblocks to growth for the benefit of every community in the UK.”
FDF has set out its Ingredients for Growth, offering the recipe for how government and industry can work together to make the UK the most competitive and dynamic food and drink sector in Europe. The report highlights more than 40 actions that government can take to secure a thriving, productive food and drink industry into the future, including six key asks from industry.
