The UK food and drink export industry faces challenges with a notable decline in the first nine months of 2024.
- Exports have decreased by 10.2%, amounting to £16.3bn, primarily due to a significant drop in alcohol sales.
- While export volumes for food and non-alcoholic drinks fell by 16.3%, their value has slightly increased by 1.2%.
- Exports to the EU and the US, significant markets for the UK, have decreased amidst ongoing trade barriers and inflation.
- Despite difficulties, the UK remains optimistic about expanding trade to non-European markets, noting the popularity of products like tea and biscuits in the US.
The UK food and drink export sector has experienced a downturn, with a 10.2% reduction in the first nine months of 2024, amounting to £16.3 billion. This decline is notably influenced by a significant drop in alcohol sales, according to the Food and Drink Federation (FDF). Trade barriers and high inflation are impacting the industry’s performance.
While the overall values of food and non-alcoholic drink exports have increased by 1.2%, the volume has seen a marked fall of 16.3%. The European Union remains the primary trading partner, but exports to these countries have been hampered, showing a 5.3% decrease, exacerbated by persistent administrative challenges.
Ireland and Germany are rare exceptions within the EU, recording slight increases of 3% and 1.4% in exports, respectively. However, these modest gains do not offset the broader trend of declining exports to European nations.
The United States, the third-largest market for UK exports, demonstrates a contrasting scenario with 460 million cups of tea and 436 million biscuits exported. However, total exports to the US have decreased by 7.9% this year.
FDF’s director, Balwinder Dhoot, emphasized the struggles small and medium enterprises face due to these administrative burdens. He highlighted the potential for growth beyond traditional European markets, citing America’s continued fondness for British tea and biscuits.
The UK food and drink industry must navigate trade barriers and inflation to stabilize and grow exports.
