Growing demand for UK food and drink exports

Total exports of food and drink in 2016 grew by 10.5% to a record figure of more than £20 billion, as UK manufacturers responded to rapid growth in demand for quality produce.

Exports of branded food and non-alcoholic drink led the way in 2016 with growth of 11.5% to £5.2 billion, the 16th year of consecutive growth. Excluding alcohol, the UK’s three top three export categories remain chocolate, salmon and cheese, with exports of salmon up 16.4%, driven by large increases to France up 32.2%, Ireland up 24.6% and Germany up 98.9%.

The US is now the second largest export market for the UK and the largest outside Europe, with exports increasing by 13% to £2.2bn in 2016. This now means the UK’s two largest export markets, Ireland and the US, together buy more than a quarter of all UK food and drink exports.

Environment secretary Andrea Leadsom comments, “As we prepare to leave the EU, there has never been a better time to become more outward looking, developing new trading relationships and establishing our place as a truly global Britain.

“But the food and drink industry cannot do this alone – we need to give them the skills, knowledge and contacts to make the most of the opportunities ahead. I want to see more companies taking advantage of these opportunities, which is why we’re expanding our team of trade experts to support UK businesses, encouraging them to take the leap and share their quality produce with the world.”

Demand was up in every single one of the UK’s top 20 markets in 2016, with China the fastest growing market, up 51.1% on 2015 to £439.5m. Highlighted as a priority export market in the joint government industry International Action Plan for Food and Drink, China’s appetite for branded UK food and non-alcoholic drink has also risen by 50% in 2016 to £84.7m.

Ian Wright, director general at the Food and Drink Federation, adds, “British food and drink exports have hit a record high yet there is still massive untapped potential. More specialist support for new and existing exporters, with fiscal incentives and financial assistance, would get more of the country’s 6,500+ food and drink producers exporting. Our target is to grow branded exports by a third by 2020 to more than £6bn.

“Competing nations such as France, Germany and Italy offer greater support for training, help with start-up costs and showcasing opportunities at international tradeshow platforms to build their band of exporters. Building on the International Action Plan, we are working with government and the Food & Drink Exporters Association to help businesses in this sector compete abroad and meet rising demand for British produce.”

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