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Delivering sustainable growth through exports

Food and drink exports are one of the key drivers of growth for our industry.

With domestic markets growing more steadily, manufacturing companies have been working hard to develop new opportunities. These have arisen through taking established British products into new export destinations and also building on the overseas interest in our innovation in sectors such as health and wellbeing.

• Breaking into new markets
• Top 10 food and drink export destinations
• Our spread of growth
• Increases in commodity sectors
• Export case studies

Our exports have continued to grow throughout 2011, after breaking through the £10 billion barrier during the previous year, and the pace shows no signs of slowing with many burgeoning new markets and product sectors. In 2011 our food and non-alcoholic drink exports totalled £12.1 billion - an increase of 11.4% on the previous year.

With an export strategy and action plan in place, which has been the result of Government and industry partnership, exports is the sector where our industry will be focusing much of its attention over the coming decade.

“During my time as FDF President I have been able to witness the industry confirm its role as a key advanced manufacturing industry, trusted partner of Government and a strong driver of economic growth.”
“Exports are key to the industry's ambition of 20% growth by 2020 and will sit along side continued demand from the domestic market. I have been heartened to hear reports of companies of all sizes that have been able to secure lucrative contracts and take their products forward in to new and established markets. British products are in high demand so let's make sure we get them in to international shopping baskets.”
FDF President, Jim Moseley

“Our food industry should be congratulated for its continued success. It's a vital part of the British economy and can play a key part in the UK's economic recovery."
“ I want to make sure food businesses get the right support to exploit the potential for export led growth, which I believe can be achieved through the Government's export action plan.”
Food and Farming Minister, Jim Paice

“Food and drink is the biggest manufacturing sector in the UK, employing around 400,000 people. It is also a major export success story. The UK leads the world in product development, proving that firms can be innovative even in the most traditional of industries. There are consumers in both our traditional export markets and in emerging economies that are eager to buy British produce. However, in this industry as elsewhere, not enough UK firms export. Working with existing networks, we need to encourage more firms to ask themselves the question: “What would exporting do for my business?”
Lord Green of Hurstpierpoint, Minister of State for Trade and Investment

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Breaking into new markets

The UK's main trade partners have traditionally been the Western developed nations. Ireland remains our largest export market, accounting for sales of £2.9 billion, but we are still making significant gains in our key EU territories of France, Germany and the Netherlands, all countries that have their own well developed strategies for exporting.

Whilst retaining their strong EU focus, in recent years our manufacturers have broadened their search for export destinations into the emerging markets of Eastern Europe and China. All of these countries are large importers but currently account for only a small percentage of UK exports. Growth in private consumption and changing diets in favour of Westernised products have opened up opportunities for ambitious UK companies.

In 2011 China entered our top 20 export growth destinations for the first time with a 55% increase on 2010 figures. Exports to Poland rose by 50%; the Czech republic by almost 44% and Latvia saw an increase of almost 50%, building on a 32% increase from 2009-2010. Northern Europe also performed strongly with the Netherlands and Belgium recording almost 30% increases each and Denmark and Sweden 21% and 18% rises respectively.

Top 10 food and drink export destinations

Established non-EU export markets such as the US and Japan have fluctuated over recent years but still remain strong with growth in exports to the US increasing by 25% between 2010-2011.

The total EU share of this year's £12 billion increase was £9.4 billion, a rise of over 11.3%. Non EU accounted for £2.7 billion, recording a similar percentage increase (11.8%) to the EU.

Our spread of growth

Interesting percentage rises were recorded in many key product sectors. The highest rise was seen in the butter and spreads sector with a surge of almost 62%. This consolidated a 40% rise the previous year where triple figure percentage increases were seen amongst some EU customers.

Strong increases were seen in sectors including beef (32%); fish fillets (32%); fresh fish (21.4%); milk and cream - not concentrated or sweetened (20%); cheese (18%); chocolate (16%) and sweet biscuits (13.5%).

Non-alcoholic drinks also performed well with increases in coffee (28%); waters (19.4%) and soft drinks (14.6%).

There was an increase of 9.7% in prepared foods, many of which are produced by FDF members, that include sauces; condiments; ice creams and crisps.

Sugar and sugar confectionery also recorded a fall of almost 15% - mainly due to a sharp decrease in sugar exports but added value sugar confectionery rose by almost 11%.

Some sectors recovered well from dips in recent years. These included breakfast cereals, where there has been contraction in EU markets, but companies have broadened their export activity to give greater emphasis to non EU customers and this has resulted in a continuation of the increases recorded in 2010.

Increases in commodity sectors

(*) Inc. fats & oils, preserved fruit/veg, fruit juice, soups, sauces & condiments, ice cream, vinegar, animal feeds and other miscellaneous products

Source: HMRC Trade Info

View all Top export sector statistics.

Export case studies

Burton's Biscuit Company; In 2010, around 13% of the company's turn over came from over seas markets. This in creased by over in 2011 and the company is on track to triple its international sales by 2014.

Chokolit; The business has seen its exports increase rapidly over the last few years, increasing in 2011 to 25%.

Dorset Cereals; Their exports have continued to increase, doubling in the last five years to £5 million.

Eat Natural; About 22% of Eat Natural's turnover in 2011 was exports, a proportion that has increased by over 40% since 2010. Eat Natural anticipates this trend continuing in the future.

Geeta's Foods; A 20% increase in Geeta's annual turnover is due to a continued increase in exports in recent years.

Honeybuns; 4% of turnover was due to Honeybuns' exports sales - a figure that has steadily increased since it began exporting in 2006.

Mackie's of Scotland; 10% of Mackie's £2.5m turnover last year was due to export sales and the company is now set to target the biggest grocery retail market in the word - the USA.

Nestlé UK; Over the past five years Nestlé has invested £100 million in the factory (Tutbury) to produce new generation of beverages.

View all the UK food and drink industry export case studies.

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More information

• Export case studies
• Download the exports brochure - pdf | 1.25Mb
• UK Food and Drink Export Performance report - (2011) - pdf | 112kb