Changing Trends in UK Food and Drink Exports: New Opportunities Unveiled

As the UK grapples with stagnating food and drink exports, new insights suggest potential pathways for recovery. The Food and Drink Federation (FDF)‘s latest Trade Snapshot indicates ongoing challenges in reclaiming export levels lost during the COVID-19 pandemic. Although export volumes remained relatively stable in Q1 compared to the previous year, a longer-term perspective reveals that substantial growth is needed to return to pre-pandemic performance. Currently, UK global food export volumes have declined by nearly one-fifth (20.4%), with non-alcoholic drinks trailing behind at a drop of 9.2% since 2020.

Emerging Opportunities Amidst the Challenges

Despite the declines, the report uncovers potential opportunities for elevating UK exports. Recent trade negotiations have shown a positive impact for food and drink manufacturers. The value of exports to non-EU countries surged by 10.5% in Q1, as producers leverage enhanced access to expanding global markets. Notably, since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) took effect in December 2024, UK soft drink exports to Malaysia have remarkably doubled (up 103%), and sweets exports have risen by 48%.

The EU as a Key Player

Conversely, export volumes to the EU—the UK’s largest and most significant trading partner—decreased by 3.7% for food and 1.7% for non-alcoholic drinks compared to Q1 2024. The newly initiated negotiations surrounding a UK/EU Sanitary and Phytosanitary (SPS) agreement could potentially enhance UK-EU exports by almost a quarter (22.5%). However, these effects are not expected until 2027 at the earliest.

Strategic Alliances with India and the US

Additionally, the report emphasizes the prospective value of recent negotiations with both the US and India. Exports to India have significantly risen over the past decade, increasing by 156%. With a Free Trade Agreement on the horizon, particular opportunities await UK manufacturers in sectors like soft drinks, biscuits, and chocolate. In the same vein, UK imports from India—including rice, spices, tea, and pulses—also saw a 20% increase in Q1 2025. Meanwhile, imports from the US rose nearly 9% (8.9%), especially in soybeans, corn, and almonds.

Call to Action

While there are promising indicators for a more favorable global trade environment, the FDF warns that substantial efforts remain. It is imperative for the government to nurture trade relations with partners near and far while prioritizing UK competitiveness in ongoing negotiations.

Balwinder Dhoot, Director of Industry Growth and Sustainability at FDF, commented:

“The ongoing negotiations on the Sanitary and Phytosanitary (SPS) agreement with the EU are a crucial step toward addressing the worrying decline in UK exports. However, it’s crucial that, through these discussions, the UK retains the ability to influence EU regulatory decisions that affect British businesses.

“This fresh data illustrates that there are numerous avenues for UK food and drink beyond the EU. Therefore, the government should continue its efforts to enhance trade relations across global markets. Reducing trade barriers and enabling businesses to adapt to new markets abroad is essential for growth, while diversifying import markets is critical for bolstering the UK’s food security.”

Removing Trade Barriers for Growth

The report identifies vital opportunities for the government to maintain momentum by eliminating trade barriers worldwide. Recently, the United Arab Emirates (UAE) entered the UK’s top ten export markets for the first time last quarter, and UK imports from Turkey rose by 8.4% in Q1 2025. Accelerating tariff reductions will help stimulate further growth in these emerging markets.

Moreover, following recent improvements in the trading relationship with the US, UK food and drink exports saw a remarkable increase of nearly a quarter (23%) at the start of 2025. As the industry prepares for the implications of increased tariffs, prioritizing the removal of the 10% export tariffs currently in effect, along with reducing import tariffs on products not produced domestically, remains vital in ongoing negotiations.