British food manufacturing industry lacks confidence

Britain’s food and drink sector has grown hugely in the last decade, but a new report has revealed that trade barriers and inflationary pressures are still affecting confidence. Let’s look at this in more detail.

Considerable growth

The Food & Drink Federation Powered Communities report revealed that the UK food manufacturing industry, including firms using vacuum conveyor services from companies such as https://www.aptech.uk.com/pneumatic-conveying-systems/vacuum-conveying-systems/, contributed a massive £37bn to Britain’s economy. It also continues to provide almost half a million jobs and has grown 17.9% in the last ten years. The sector now accounts for 24.2% of the total manufacturing turnover in the UK.

Employment within the sector is also growing, with 41,000 new jobs created since 2018. The number of manufacturing businesses also grew by 14% from 2019 to 2024.

Future challenges

Despite the growth, the report revealed that manufacturers’ confidence has considerably dipped. It fell to 47% in the last quarter of 2024 due to trade barriers, inflationary pressures, and looming EPR – extended producer responsibility – fees for packaging.

FDF director Jim Blight said the industry was facing a pivotal moment and called on the government to safeguard the future of this vital industry. He said the FDF had produced 40 steps that could be taken by the government to get rid of unnecessary roadblocks and allow growth that could benefit all UK communities. Some of the areas needing to be addressed, according to the FDF, are access to superior skilled talent, a drop in export volumes for food and drink, and lower-than-needed investment in innovation.

Within the 40 steps being called for, there are six main tasks being put forward from the industry. These include the sector securing its fair share of R&D spend to support investment in the development of new products and healthier choices, and the co-creation of a skills and workforce plan alongside Skills England. The FDF also wants to see a simplified research and development tax credits system, the ring fencing of EPR costs, the simplification of regulations, and a better approach to trade relations with the EU.

About Author