UK food and drink exports fell to £5.7 billion in the first quarter of 2026, a 4.8% decline in value, and saw an 8.9% volume decline year-on-year, dropping to 2 billion kg.

According to FDF this is the lowest Q1 export volume in the past decade, excluding during the pandemic, and the third lowest since 2000. FDF said that the decline is a “clear signal that UK manufacturers are losing ground to global competitors”.

Meanwhile, the report found that imports of food and drink to the UK gained ground, growing by 2.6% in the beginning of 2026 to £16.3 billion, widening the gap between the UK’s food and drink exports and imports.

Tariffs have led to a slump in UK US exports

Export decline was primarily driven by a drop in exports beyond the EU, found FDF, which fell by 11.5% compared to Q1 2025, with US exports to the US falling by more than a quarter (27.9%) in value terms, showing the impact of the additional tariffs imposed by the US in April 2025.

At the same time, US imports to the UK increased by 11.5% to £419.5 million, which showed US food and drink manufacturers are strengthening their position in the UK market, said FDF. The UK’s food and drink export surplus with the US has fallen 69.3%, from £359 million to £110 million in Q1 20265 – its lowest level since Brexit. This trend is likely to persist, according to FDF, as the US is set to benefit from proposed tariff suspensions announced by the UK Government this year, which would make it cheaper for US businesses to export products such as chocolate, biscuits, jams and spreads to the UK.

The Trade Snapshot also showed that exports were down to markets where the UK has recently signed trade deals. For example, food and drink exports to Comprehensive and Progressive Trans-Pacific Partnership members (CPTPP) fell by 11.3%, and UK exports to India were down 16.6% in volume terms, which FDF said shows the “importance of manufacturers being supported to reap the benefits of these deals”.

Exports to the EU continue to decline

EU exports fell by 6.9% in volume terms in Q1 2026 compared to Q1 2025, continuing the downward trend that has been seen since 2019, “reflecting the added cost and complexity of trading with our closest trade partner” since Brexit. FDF highlighted that exports fell in value terms to the UK’s two largest overall export markets – Ireland (-6.3%) and France (-5.8%), compared to Q1 2025.

The Sanitary and Phytosanitary (SPS) agreement aims to remove some of this additional trade friction when trading with the EU. FDF stated that “it is vital that businesses are given as much clarity as possible, and as soon as possible”, so that they can benefit from the agreement in the long-term, and begin to revitalise food exports to the EU.

UK manufacturers are struggling to keep pace

In terms of non-EU imports, Q1 2026 saw growth of 4.2% in value terms, compared to 2025, while EU imports grew by 1.9% over the period. The report shows that the cost of importing ingredients and raw materials has increase, for example, the cost of plastic packaging is 38c.6% higher than it was in 2020. Combined with rising energy prices, and ongoing regulatory pressures, this is adding persistent pressure to the cost of producing food in the UK, according to FDF.

Falling exports, rising imports and high production costs mean that British food and drink manufacturers are struggling to keep up with global competition at home and abroad. FDF said this presents a “growing threat” to the long-term resilience of the sector.

Karen Betts, chief executive of the FDF, commented: “Food and drink businesses are part of the fabric of every community in the UK, and it’s concerning to see them struggling to compete overseas. The UK produces world-class food and drink, drawing on our heritage and our reputation for innovation, but we have to be able to remain competitive overseas against local products. The costs of producing food and drink in the UK are higher than in many competitor economies, from energy to employment, and constantly changing regulation only adds to these.”

“The Government’s current proposals to remove tariffs on imported food risk making a bad situation worse.”

Betts continued: “There is plenty Government can do to improve the competitiveness of our food and drink exporters, many of which are SMEs, from helping companies to access the benefits of trade deals to lowering the cost of doing business in the UK.

“The Government’s current proposals to remove tariffs on imported food risk making a bad situation worse. It is very undermining of UK businesses and of the people they employ, and it undermines the UK’s food security in the longer term. Government should suspend tariffs on ingredients rather than manufactured products, to lower the cost of producing food here in the UK and to help businesses keep prices down for consumers.”