The Food and Drink Federation (FDF) has called on Government to partner with the UK food manufacturing sector to grow exports and double annual investment.
FDF urged Government to “unlock an ambition vision for growth and competitiveness” by 2035, stating that the plan would double annual investment, grow exports to £35 billion and “position the UK as a global hub for food and drink innovation”.
The trade association highlighted that UK manufacturers had been facing “significant challenges” amid rising costs, regulatory pressures and uncertainty, including weak consumer demand and increasing competition from abroad, which resulted in business confidence in the sector falling to -60% in Q3 2025.
Backed by brands such as Associated British Foods, Danone, Mondelēz International, Nestlé UK, Nomad Foods, Premier Foods, Princes Group, Suntory Beverage and Food, and Tate & Lyle Sugars, food and drink manufacturers have laid out their five Growth Ambitions, aiming to support the resilience and long-term success of the sector:
- Doubling annual business investment from £5.8 billion to £12 billion
- Growing exports to £35 billion
- Generating over £50 billion in gross value-added (GVA) for the UK economy by unlocking a £14 billion opportunity in technology adoption
- Make the UK the global hub for healthier product innovation and food and drink R&D
- Contribute to a 50% reduction in emissions across the agrifood supply chain and drive investment in the circular economy
From promoting British exports and strengthening supply chain resilience, to supporting investment in healthier products and innovative ingredients, FDF said that there is a “big opportunity” for UK food and drink to “lead on the global stage”.
Manufacturers suggested Government can help industry achieve this by:
- Broadening R&D tax credit eligibility to include healthier product innovation
- Relaxing “outdated and restrictive” import rules that stop food manufacturers from bringing in food samples for research and development
- Opening up existing funding in robotics and technology so food and drink manufacturers can access it too
- Matching the devolved nations’ export support and promotion to help small businesses sell their products abroad
- Offering tax relief to help scale-up innovation in cutting-edge precision fermentation, which is creating the next generation of ingredients
- Supporting the transition to a higher skilled workforce by introducing short courses that are critical to the sector within the Growth and Skills Levy
Secretary of State for the Environment, Emma Reynolds, said: “The food and drink sector is at the heart of Britain’s economy, contributing £37 billion and employing nearly half a million people across the country. We’re backing this vital industry with action.
“We’ve launched our Good Food Cycle in partnership with industry to create the conditions for the food sector to thrive and grow sustainably, including investment in innovation and productivity, and are negotiating an SPS agreement with the EU to cut red tape and costs.
“Kickstarting growth is the Government’s number one mission, and we’re determined to make the UK the best place in Europe to make and export food and drink.”
“Right now there’s work to be done if we want the UK to be the best place in the world to start, grow, and invest in food manufacturing.”
Karen Betts, chief executive of the Food and Drink Federation (FDF), said: “Food and drink manufacturing is the backbone of the UK’s ‘everyday economy’. We contribute £37 billion to the economy, employ half a million people, and export nearly £25 billion of British products loved around the world.
“But our industry can and should do so much more. We need to grow our investment in technology, environmental sustainability, and healthier products, to better serve the UK’s growing population and maintain our competitiveness. But to do that, we need a stronger partnership with the whole of Government, with clear, agreed aims, which create the conditions and the confidence for companies to invest.
“Our companies believe in the UK as a great place to do business. But right now there’s work to be done if we want the UK to be the best place in the world to start, grow, and invest in food manufacturing. Our ten-year ambition lays down a challenge which is bold and achievable, will unlock investment and deliver prosperity for communities right across the UK.”
Minister for Consumer Goods, Kate Dearden, said: “As the UK’s largest manufacturing sector, our food and drink industry is key to economic growth. Not only does it support key facilities and supply chains, but also hundreds of thousands of jobs across the country.
“Through our Trade Strategy we are removing barriers and creating exciting new export opportunities for the sector, helping to boost productivity, investment and jobs as part of our Plan for Change.”
