The Food & Drink Exporters Association (FDEA) has produced two new Actionable Insight Reports for UK food and drink exporters. One on global trends and markets, the other on export operations.
FDEA director, Nicola Thomas told Food Management Today: “We polled circa 30 experts in our network , a mixture of our in-country partners, operating in circa 25 global markets, international trade experts in the fields of supply chain, compliance, labelling and certification plus additional specialists such as IGD, RangeMe and OneTribe.
“We asked them to outline trends, opportunities and challenges in their market/ area of expertise and to comment on how UK brands can position themselves to win.”
Whilst the whole reports are only being circulated for free to FDEA members, the Association has shared some of the key findings with Food Management Today.
Trends and markets
- Retail grocery growth is being driven by Asia which will generate 41% of global sales by 2027
- Shopper channels multiplying as they seek value: growth of discounters and online. Brands will need to follow the shopper into these channels
- Categories universally on the up : plant-based, snacking, non-alcoholic drinks, health and wellness (food as medicine), dairy, private label
- Market-specific opportunities: indulgent fusion (China); meal kits (Australia and Japan); celebration cakes and chilled desserts (Nordics); food-to-go (India)
- Premium products: small luxuries endure – treats in certain categories rather than universal demand
- British brands are under-represented compared to our competitors in territories such as the ASEAN region and India
- Brand Britain positioning helps differentiate from our competitors: provenance, quality, tradition are values which count for buyers and consumers
- Digital marketing strategies pivotal to influencing consumers (driven by brand owner rather than distributors)
- Sustainability: packaging – materials and reduction, reducing carbon footprint, demonstrating commitment to consumers and buyers.
Export Operations
- Labelling: global / regional diversity of nutritional and sustainability claims are a minefield!
- IP: lack of provision for IP in distributor agreements; early trade mark searches and filings, especially in Asia
- Packaging: focus on recyclability rather than material; communicate sustainability credentials on pack; use packaging to inform target market selection
- Trade Shows: don’t leave it too late to commit! Visitors increasingly pre-planning their meetings so look to engage well ahead
- Communications: localisation wins customers (website and social media)
- Supply chain: align your ESG strategy with supply chain strategy
- Regulatory: food security, safety and integrity – emphasise your / the UK’s credentials to buyers
- Kosher and Halal Certification: increasingly important levers to open up new markets and reach new consumers
- Distributor agreements: make sure you ask ‘What if’ type questions which often get overlooked in the excitement of ‘doing the deal’
- Compliance: Review your selling price in view of current supply chain volatility i.e. correct Incoterms, transport costs, customs costs and potential duties and taxes.
FDEA’s response
Commenting on the key findings director Nicola Young said the FDEA will be holding: “A series of category deep dives: the first one on 28th March looks at the global confectionery market ahead of ISM to help the exhibitors on our British pavilion and UK visitors maximise the opportunity.
“Our in-country partners have wide experience of helping UK brands to enter markets and build sales on the ground. We run regular market insight sessions in Asia, Australia and France, which are highly practical and include getting and managing retailer listings and the China GACC registration process.”
She added: “Do what you do best, and outsource the rest. Brexit and Covid changed the role of export sales teams and many found themselves having to get to grips wit, for example, compliance, supply chain, documentation, tariffs and duties on top of their day jobs and outside their area of expertise. By tapping into our network of international trade experts, exporters can get back to focusing on sales, optimise their limited resources and avoid costly mistakes.”
She explained that FDEA has: “Regular online member ‘power hour’ meet ups where work on issues together, swap knowledge and contacts. For example in a recent session we covered IP planning, the latest changes in FDA regs in the US, leveraging Halal certification to reach 1.8 billion new consumers and; international trade show planning for 2024.”
Commenting on digitalisation and ESG, Thomas said: “We are breaking these megatrends down into bite-sized chunks to help exporters harness digitalisation and develop sustainable and socially responsible export value chains, including packaging, logistics and brand messaging.”
