Data from the Food and Drink Federation (FDF) shows UK export growth was driven by new global trade opportunities, with non-EU export growth leading EU growth.
According to the latest FDF Trade Snapshot, food export volumes were up by 7.2% in the first half of 2025. In the first six months of the year, the UK exported 4.5 billion kg and 590 million litres of food and drink, respectively, to more than 200 countries. This increase follows a decline in food and drink exports last year.
FDF is now calling on Government to work with industry on “ambitious targets” for continued growth, given food and drink export volumes are still 13% lower than 2023 levels.
The Trade Snapshot revealed that trade with the UK’s largest partner, the EU, showed steady growth of 4.2% in value terms compared to 2024. However, export growth was largely driven by trade with non-EU countries, which increased by 10.6% compared to the first half of 2024.
FDF stated that the US had a “significant impact” on the trade outlook in the first half of 2025, with exports of food and drink to the US increasing by 18.9% to £1.4 billion. This growth continued even after the additional 10% tariff took effect, which the FDF said reflected the UK’s “comparatively better deal” in some categories of food and drink than some other nations.
The report also showed that two years on from the signing of a trade deal with Australia-New Zealand, exports to New Zealand increased by 19.7% in H1. India also saw 11.6% growth and the new trade deal with India, signed in July 2025 and expected to come into force in 2026, will help build on this trend.
SPS agreement
A new SPS agreement with the EU will also help remove significant barriers to trade, including complicated and expensive checks and certification. Until the new agreement comes in, FDF said “Government can work to reduce border costs and avoid any unnecessary burden on businesses by providing a clear roadmap for businesses, with guidance and phased transition periods”.
Opportunities for growth
FDF is added that it is urging Government to partner with industry to seize this trade growth and ensure it continues, turning these promising signs into a longer-term trend. Stating: “We want to work with government to set ambitious targets to grow overseas exports, and on a plan to maximise new global trade opportunities, while providing businesses with the support and guidance they need to take advantage of these – particularly smaller businesses who might be new to selling abroad. This is particularly important given the overall volatility of trade at the moment, and it would insulate UK manufacturers from any downturn.”
As an example, FDF said that Government can help businesses trade with countries most impacted by US tariffs and where the UK is already seeing strong growth, such as Mexico, Canada and China, due to retaliatory measures introduced by these countries that have led to “notable declines” in food and drink exports from the US.
The Trade Snapshot showed that US tariffs will continue to impact in the second half of the year and FDF said it is vital for Government to work to reduce tariffs for products where the UK has ended up with a higher rate than the EU, so that UK manufacturers can remain competitive.
Across the rest of the world, a comprehensive trade agreement with the Gulf Cooperation Council (GCC) could also provide new customers for UK suppliers, said FDF, with UK food and drink already seeing high demand in the region. Meanwhile, with exports to Türkiye up 68.6% in H1, progressing an updated Free Trade Agreement could boost this further.
“We want to work with Government to create a clear and ambitious target to boost the UK’s overseas food and drink sales.”
Balwinder Dhoot, FDF
Balwinder Dhoot, director of growth and sustainability at FDF commented: “It’s positive to see an increase in export volumes compared with last year, and now we need to go further. Government and industry can work together to use this as a springboard to turbocharge export growth.
“We want to work with Government to create a clear and ambitious target to boost the UK’s overseas food and drink sales, with a long-term plan to help us hit it. This could include improving access to global markets like Türkiye and Mexico, ensuring the smooth implementation of an EU SPS agreement, bringing down US tariffs where they’re higher than those paid by the EU, and supporting businesses that want to trade with new markets. This would help give industry a much-needed boost, helping businesses to sell more world-class British food and drink around the globe.”
