FDF urges government to back £50bn growth plan for UK’s largest manufacturing sector
The Food and Drink Federation (FDF) is calling on government to partner with Britain’s largest manufacturing sector to unlock an ambitious vision for growth and competitiveness by 2035. The plan would double annual investment, grow exports to £35bn, and position the UK as a global hub for food and drink innovation.
From the bakers and cereal makers of the Midlands, to the soft drink producers of the South West, to Scotland’s oat millers, and soup makers in the South East, the UK’s 12,000 food and drink manufacturers are the backbone of the UK economy. However, they’re also facing significant challenges. With rising costs, regulatory pressures and uncertainty, weak consumer demand, and increasing competition from abroad, business confidence in the sector fell to -60% in Q3 2025. Nonetheless, the sector is determined to seize untapped growth.
Backed by many of the nation’s most well-known and loved food brands, including Associated British Foods, Carlsberg Britvic, Danone, Mondelēz International, Nestlé UK, Nomad Foods, Premier Foods, Princes Group, Suntory Beverage and Food, and Tate & Lyle Sugars, food and drink manufacturers are laying out their five Growth Ambitions to support the resilience and long-term success of the sector:
- Doubling annual business investment from £5.8bn to £12bn
- Growing exports to £35bn
- Generating over £50bn in gross value-added (GVA) for the UK economy by unlocking a £14bn opportunity in technology adoption
- Make the UK the global hub for healthier product innovation and food and drink R&D
- Contribute to a 50% reduction in emissions across the agrifood supply chain and drive investment in the circular economy
With the sector tasked with finding solutions to some of society’s biggest challenges, from healthier diets and sustainability, to harnessing new technology and increasing trade, the common thread to unlocking growth in all of these areas is renewed investment.
In setting out a clear, actionable plan, FDF is highlighting at its annual Investment Summit today how a strong government-industry partnership can unlock growth and investment in the UK’s largest manufacturing sector.
From promoting British exports and strengthening supply chain resilience, to supporting investment in healthier products and innovative ingredients, there’s a big opportunity for UK food and drink to lead on the global stage. Manufacturers are coming to the table with a host of ways government can help industry achieve this, including:
- Broadening R&D tax credit eligibility to include healthier product innovation
- Relaxing outdated and restrictive import rules that stop food manufacturers from bringing in food samples for research and development
- Opening up existing funding in robotics and technology so food and drink manufacturers can access it too
- Matching the devolved nations’ export support and promotion to help small businesses sell their products abroad
- Offering tax relief to help scale-up innovation in cutting-edge precision fermentation, which is creating the next generation of ingredients
- Supporting the transition to a higher skilled workforce by introducing short courses that are critical to the sector within the Growth and Skills Levy
The food and drink manufacturing sector stands ready to deliver growth, resilience, and innovation at scale – but it requires clear, coordinated government action to unlock investment and secure the UK’s competitiveness.
Secretary of State for the Environment, Emma Reynolds, said:
"The food and drink sector is at the heart of Britain's economy, contributing £37 billion and employing nearly half a million people across the country. We're backing this vital industry with action.
“We've launched our Good Food Cycle in partnership with industry to create the conditions for the food sector to thrive and grow sustainably, including investment in innovation and productivity, and are negotiating an SPS agreement with the EU to cut red tape and costs.
“Kickstarting growth is the government’s number one mission, and we’re determined to make the UK the best place in Europe to make and export food and drink."
Karen Betts, Chief Executive, The Food and Drink Federation (FDF), said:
“Food and drink manufacturing is the backbone of the UK’s ‘everyday economy’. We contribute £37 billion to the economy, employ half a million people, and export nearly £25 billion of British products loved around the world. But our industry can and should do so much more. We need to grow our investment in technology, environmental sustainability, and healthier products, to better serve the UK’s growing population and maintain our competitiveness. But to do that, we need a stronger partnership with the whole of government, with clear, agreed aims, which create the conditions and the confidence for companies to invest.
“Our companies believe in the UK as a great place to do business. But right now there’s work to be done if we want the UK to be the best place in the world to start, grow, and invest in food manufacturing. Our ten-year ambition lays down a challenge which is bold and achievable, will unlock investment and deliver prosperity for communities right across the UK.”
Minister for Consumer Goods, Kate Dearden, said:
“As the UK’s largest manufacturing sector, our food and drink industry is key to economic growth. Not only does it support key facilities and supply chains, but also hundreds of thousands of jobs across the country.
“Through our Trade Strategy we are removing barriers and creating exciting new export opportunities for the sector, helping to boost productivity, investment and jobs as part of our Plan for Change."
-Ends-
Read the FDF Ambition for Growth
About FDF
The Food and Drink Federation (FDF) gives a voice to the food and drink manufacturing industry – the UK’s largest manufacturing sector. We contribute over £38 billion to the country's economy, supporting half a million jobs and driving growth at home and abroad. For more information on the FDF and the industry we represent visit www.fdf.org.uk.
For further enquires please contact the FDF Press Office or contact 020 7420 7140.