UK food exports see ‘green shoots’ as non-EU trade outpaces growth

The UK’s food and drink export sector is showing promising signs of recovery, with overall export volumes increasing by 7.2% in the first half (H1) of 2025 compared to the previous year, according to the latest Trade Snapshot from the Food and Drink Federation (FDF).

Crucially, this uplift was primarily driven by manufacturers successfully targeting new global markets, with non-EU exports surging by 10.6%, outpacing the steady, but slower, growth seen in the EU market.

The data shows UK businesses exported a total of 4.5 billion kg of food and drink to over 200 countries in H1. However, the FDF stressed that this growth follows a year of flatlining exports, with volumes still lagging 13% below 2023 levels. The federation is now urging the government to establish an ambitious partnership with the industry to set long-term targets and secure sustained growth.

The United States proved to be the single largest engine of growth outside the EU, with food and drink exports to the US jumping by 18.9% to £1.4 billion. This performance is particularly notable as it continued even after a 10% retaliatory tariff took effect, reflecting the UK’s comparative advantage in some key categories.

New trade agreements are also starting to deliver tangible results:

• Exports to New Zealand increased by nearly a fifth (19.7%), two years after the signing of the Australia-New Zealand trade deal
• India saw growth of 11.6%, a trend the industry expects to accelerate once the new trade deal signed in July 2025 comes into force, promising the reduction or removal of high Indian tariffs over the next decade.
• Exports to Turkey skyrocketed by 68.6% in H1, highlighting the potential benefits of progressing an updated Free Trade Agreement (FTA) with the nation.

To transform these “green shoots” into a stable, long-term trend, the FDF is calling for a collaborative industry-government strategy focused on three key areas:

1. Setting ambitious targets: establishing clear, long-term goals for boosting the UK’s overseas food and drink sales, supported by a plan to maximise new global trade opportunities.
2. Addressing US tariff disadvantages: working urgently to reduce tariffs for high-value products like chocolate, ice cream, and soft drinks, where the UK currently faces higher rates than the EU, to maintain competitiveness
3. Reducing EU trade barriers: pressing for a new Sanitary and Phytosanitary (SPS) agreement with the EU to remove complicated and expensive border checks and certification, and, in the interim, providing a clear roadmap to reduce costs and administrative burden on businesses.

Balwinder Dhoot, director of growth and Sustainability at the FDF, emphasised the need for collaboration: “It’s positive to see an increase in export volumes compared with last year, and now we need to go further. Government and industry can work together to use this as a springboard to turbocharge export growth.”

She concluded that a strategic plan could include improving access to burgeoning global markets like Turkey and Mexico and providing essential support for smaller businesses looking to navigate the complexities of international trade.