According to the Food and Drink Federation (FDF) 2024 Trade Snapshot, food export volumes have fallen by more than a third since 2019.
Food export volumes to the EU declined by 34.1% since 2019, with FDF stating that this reflected a “longer-term trend”.
UK global food and drink export volumes were down 19.8% on average between 2020 and 2024, compared to between 2015 and 2019.
The Trade Snapshot found that a downturn in food export volumes was not part of a global trend, but “unique to the UK’s post-Brexit arrangements”, as other European countries such as the Netherlands, Germany and Italy all saw their export volumes increase since 2020.
A “concerning gap” between imports and exports
The report also showed that food and drink imports from the EU to the UK grew 3.3% last year to £44.7 billion compared to 2023, as European businesses benefitted from a more advantageous trading environment, even after new border checks for EU food and drink products were introduced in April 2024.
Imports to the UK are subject to fewer checks compared to UK businesses exporting equivalent products to Europe, helping to drive this growth. As a result, the report found UK food and drink exports reached their highest ever level in 2024, worth £63.1 billion. However, it also noted that UK exporters were struggling to meet EU requirements.
FDF said there was a “concerning gap” between UK imports and exports, calling for a strategic approach to help reverse this trend. It recognised a need to introduce a balanced SPS agreement while helping businesses to contend with trade regulations by simplifying paperwork and reducing border fees.
Balwinder Dhoot, FDF director of industry growth and sustainability, said: “These latest figures show the stark reality for the UK’s 12,500 food and drink businesses that are struggling to deal with the complexity and bureaucracy that comes when trading with Europe. Government must prioritise working with the EU, and our industry, to remove as many of these barriers as possible.
“It is important that we don’t just get a quick fix, but the right fit for the UK when it comes to our relationship with the EU. We stand ready to work with Government to develop a trade deal that will drive growth in our sector.”
Food export volumes increase
The Trade Snapshot highlighted that the EU remained the UK’s most important food and drink trade partner, accounting for 61.8% of exports and 75.6% of imports in 2024. However, across the rest of the globe, food export volumes increased 5.7% year-on-year as the UK saw the benefits of recent new trade agreements.
Two years after entry, further promotion of a new free trade agreement (FTA) with Australia resulted in the value of exports to the country increasing 9.1% to £429.5 million.
Ireland and France remained the UK’s biggest individual export markets, with the USA taking up the third spot. Growth in the USA export market was “particularly strong”, up more than 11.8% compared to 2023.
Turkey was also highlighted as a “major export market opportunity”, seeing growth of 23.4% in 2024.
Nicola Thomas, director of UK Food and Drink Exporters Association (FDEA), commented: “Against a backdrop of global geopolitical and economic uncertainty, it is encouraging to note several new countries are potentially opening up for UK food and drink exporters as FTAs come into play.
“Here at the FDEA, we are increasingly seeing that leveraging the knowledge, expertise and experience of industry peers, international trade specialists and in-market experts has never been more important to help navigate both the opportunities and challenges that lie ahead.”
According to FDF, the UK can “harness the opportunity” that joining the CPTPP in December 2024 presents and achieve an “ambitious” trade agreement with the Gulf Cooperation Council (GCC) to continue to drive growth in emerging markets and protect its food security.
