The Institute of Grocery Distribution (IGD) has published its latest Viewpoint Special Report, ‘Driving growth through a thriving food system’, urging the UK to drive economic growth and ensure a “reliable, sustainable food supply” for its expanding population.

IGD highlighted that businesses across the food system play a “vital role” in feeding the nation and underpinning the UK economy, contributing 7% of national Gross Value Added (GVA) and employing more than four million people.

By investing in the expansion of horticulture and poultry production, IGD said the UK could gain an additional £1.3 billion in annual production value, injecting up to £5 billion of investment into the economy by 2030. It also suggested that this could create an additional 60,000 new jobs.

The poultry and horticulture sectors have been identified as top priority sectors because, according to IGS, they best meet the criteria for impactful, scalable and sustainable expansion.

British horticulture, despite a 5.1% rise in value between 2015 and 2024, mainly due to higher input costs and increased consumer prices, has seen a “worrying volume decline” of -1.9% over the same period. Domestic fruit and vegetable output has dropped by 600,000 tonnes (16%) since 2015, pressured by water scarcity, energy volatility, labour shortages and inconsistent planning approvals.

However, IGD said that with the right support and reforms, horticulture holds “clear potential” for revitalisation and future growth, offering the opportunity to “reverse recent declines and strengthen food security”.

In contrast, IGD labelled the poultry industry a “strong growth story”, contributing £7.5 billion to the UK economy and supporting around 110,000 jobs. From 2015 to 2024, UK chicken meat production has increased by 2.7% annually, rising from 1.4 million tonnes to 1.8 million tonnes. With consumer demand continuing to climb, the sector is “poised for even greater expansion”, with the potential for 5.8% growth between 2024 and 2030, which IGD said “firmly positioned poultry at the heart of the UK’s protein supply”.

More locally produced food

The report detailed how economic growth was the “key to reversing stagnant incomes and improving living standards”.

It said that economic growth isn’t just beneficial at a macro, national level, it directly benefits every household. Boosting domestic horticulture and poultry will “help control food inflation and protect consumers from unpredictable swings” in global food prices, found IGD, and it will shorten supply chains, reduce reliance on unstable import markets, and lower the UK’s food-related emissions.

As a result, this means more locally grown fruit and vegetables, poultry meeting assured British quality standards, unlocking 60,000 new job opportunities and revitalising local economies and communities, said IGD.

To unlock the potential for UK poultry and horticulture, IGD urges for targeted Government action in key areas:

• Embed a national spatial plan in the National Planning Policy Framework to pre-identify optimal locations for poultry shed expansion based on infrastructure, environmental impact and market access. Allow for permitted development for pre-identified sites.
• Introduce fast-track planning for Controlled Environment Agriculture (CEA) under the Land Use Framework and ensure Grade I and II agricultural land is prioritised for high-value horticulture.
• Publish a Defra-led national water infrastructure strategy prioritising horticulture, with streamlined planning to cut reservoir approval times to under 12 months.
• Extend Seasonal Worker Scheme visas from 6 to 9 months for tomatoes, peppers and cucumber growers.

Matthew Stoughton-Harris, head of resilience at IGD, commented: “The UK food system is more than a contributor to growth – it’s a catalyst for resilience and renewal. Its reach into every community, its role in employment, and its potential to address national challenges make it uniquely positioned to support purposeful economic recovery.

“But growth must be targeted. Unlocking opportunities in sectors that align with health, sustainability, and productivity goals will help the food system grow not only bigger, but better.

“We urge the Government to act now on enabling the full potential of poultry and horticulture as national growth drivers. Draw on cross-sector expertise to create a joint, actionable strategy with clear responsibilities and timelines. Only with a unified national strategy can we unlock the full potential of these critical sectors.”