£37 Billion & Growing: FDF Report Reveals the Power of UK Food & Drink Manufacturing

Think about your last meal. That comforting cuppa, the satisfying crunch of a biscuit, the vibrant flavours of a ready meal. Behind every delicious bite and thirst-quenching sip lies a powerhouse sector: UK food and drink manufacturing. And according to a fresh report from the Food and Drink Federation (FDF), this isn't just about keeping our bellies full – it's a major engine driving the nation's economy, a true unsung hero with a growth story that deserves a hearty helping of recognition.

Over the last decade, while other sectors have weathered storms, our food and drink manufacturers have been quietly but impressively bulking up, delivering a remarkable 17.9% growth. Today, this vital industry pumps a staggering £37 billion into the UK economy. To put that into perspective, that's almost a quarter (24.2%) of all the money generated by manufacturing across the entire UK. Forget smoky factories; think bustling bakeries, innovative beverage plants, and cutting-edge food production facilities, all contributing significantly to our national prosperity.

And this economic might isn't confined to the industrial heartlands; it's woven into the fabric of communities across every corner of the UK. From the rolling hills of Scotland, where it accounts for nearly a third (30.8%) of all manufacturing clout, to the vibrant East Midlands (20.6%) and the industrious Northern Ireland (20.2%), food and drink manufacturing is a local champion, providing livelihoods and underpinning regional economies. It's the friendly face of industry in our towns and cities.

But the story doesn't stop at pounds and pence. This sector is also a colossal job creator, providing a whopping near half a million (486,500) jobs across the UK's 12,195 food and drink businesses. And it's not a stagnant workforce; since 2018, the industry has cooked up an impressive 41,000 new jobs. What's more, the number of food and drink manufacturing businesses has swelled by a healthy 14% between 2019 and 2024, demonstrating a sector brimming with entrepreneurial spirit and growth.

So, what's the secret ingredient behind this decade of delicious success? A significant dollop of innovation, for starters. Smart investments in whizzy robots and automation are streamlining production lines, while a constant drive for research and development is leading to healthier, tastier, and more sustainable products. The industry isn't resting on its laurels; it's constantly evolving to meet consumer demands and embrace new technologies.

And the potential for even more growth is tantalizing. The FDF has identified a mouthwatering £14 billion productivity opportunity just waiting to be unlocked through further investment in automation, digital wizardry, and the power of AI. Imagine the possibilities!

However, like any good recipe, there are potential pitfalls. The latest FDF State of Industry report sounds a note of caution, revealing a dip in business confidence to a chilly -47% in the final quarter of 2024. The culprits? Rising costs, trade barriers throwing a spanner in the works, and the looming Extended Producer Responsibility (EPR) fees for packaging – a hefty cost that could impact investment.

To keep this vital sector thriving, the FDF is making a clear call to government: it's time for decisive action. They're urging for a helping hand to address the roadblocks hindering growth, including a fairer share of R&D funding to fuel innovation, a collaborative plan to tackle skills shortages, and a simplification of the R&D tax credit system to encourage technological adoption. They're also lobbying hard to ensure that the significant EPR fees are genuinely reinvested in improving recycling infrastructure, rather than disappearing into general funds. Furthermore, a more strategic approach to EU trade is crucial to revive those dwindling export numbers. Finally, a plea for simpler regulations and less red tape aims to free up businesses, particularly the 12,000 SMEs, to focus on what they do best: growing and producing fantastic food and drink.

As the FDF aptly puts it, this industry is the bedrock of our food system, ensuring we have access to high-quality, affordable sustenance. It's a major player in the UK's manufacturing landscape, offering rewarding careers, attracting investment, and fostering international trade. Food and drink manufacturing has a unique ability to positively impact every community across the nation.

The FDF has even laid out its "Ingredients for Growth," a recipe book of over 40 actions that government and industry can cook up together to make the UK the most competitive and dynamic food and drink sector in Europe. Their six key asks are a clear roadmap for ensuring this vital industry continues to flourish, feeding our nation and fueling our economy for decades to come. It's time for government to take note and ensure this foundational sector gets the support it needs to keep delivering the goods – literally.