As UK food and drink exports continue to flatline, new data shows opportunities to turn the tide

• New data from The Food and Drink Federation (FDF) reveals that global food exports continue to struggle to return to pre-pandemic levels, currently down a fifth in volume terms (20.4%) in the first quarter of the year, compared to 2020 levels.
• The FDF Q1 Trade Snapshot highlights that there are opportunities to help reverse this trend, indicating the positive impact of new trade deals.
• While trade negotiations suggest potential positivity ahead, FDF warns that the work is not done, and government must continue to prioritise British competitiveness in ongoing trade negotiations.

The Food and Drink Federation’s (FDF) latest Trade Snapshot reveals the continued struggle to recover lost exports since the COVID pandemic. While export volumes were relatively steady in Q1 compared to 2024, looking at the longer-term trend, significant growth is needed to return to pre-pandemic levels. UK global food export volumes are down nearly a fifth (20.4%) and non-alcoholic drinks are down 9.2% compared to 2020.

However, the report shows that there are opportunities to raise the level of UK’s exports, highlighting the positive impact of recent trade negotiations for food and drink manufacturers. The value of food and drink exports to non-EU countries were up 10.5% in Q1, as food producers take advantage of improved access to growing global markets. For example, since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) came into force in December 2024, UK exports of soft drinks to Malaysia have more than doubled (103%), while exports of sweets have grown by 48%.

Export volumes of food and non-alcoholic drinks to the EU – the UK’s biggest and most important trade partner – were down by 3.7% and 1.7%, respectively compared Q1 2024. The recently announced negotiations on a UK/EU Sanitary and Phytosanitary (SPS) agreement with the EU is expected to have a positive impact, and could boost UK-EU exports by almost a quarter (22.5%)¹. However, this won’t affect exports until 2027 at the earliest.

The report also highlights the potential value of recent negotiations with the US and India for UK trade. Exports to India have surged over the past decade, up 156%. With the new Free Trade Agreement expected to boost exports even further, soft drinks, biscuits and chocolate present particular opportunities for UK manufacturers. Meanwhile, imports from India, such as rice, spices, tea, and pulses, grew a fifth (20%) in Q1 2025. US imports were up by nearly a tenth (8.9%), with particular growth in soybeans, corn, and almonds.

While there are encouraging signs of an improved global trade outlook ahead, FDF warns that there’s more work to be done. It’s vital that government continues to build closer trade relationships with trade partners, near and far, and prioritises British competitiveness in ongoing negotiations.

Balwinder Dhoot, Director of Industry Growth and Sustainability, FDF said:

“As the UK’s biggest and most important trade partner, the negotiations on a Sanitary and Phytosanitary (SPS) agreement with the EU is a positive step towards reversing a concerning decline in exports from the UK. But it’s far from a silver bullet. It’s vital that through these negotiations the UK secures the ability to influence EU regulatory decisions that will impact British businesses.

“This new data demonstrates that there are also plenty of opportunities for UK food and drink beyond the EU, meaning government should keep its foot on the gas when it comes to improving the UK’s trade relationships across other global markets. Removing trade barriers and helping more businesses expand into new markets abroad presents a crucial growth opportunity, while diversifying our import markets is vital to protecting the UK’s food security.”

The report highlights several opportunities for government to maintain momentum by removing barriers to trade across the globe. For example, the United Arab Emirates (UAE), entered the UK’s top ten export markets for the first time last quarter while UK imports from Turkey were up 8.4% in Q1 2025. Pushing tariff reductions over the line faster, will help promote further growth within these emerging markets.

Additionally, while recent improvements to the overall trading relationship with the US were welcome, UK food and drink exports to the US increased by almost a quarter (23%) at the start of 2025 – a significant rise as businesses brace for the impact of increased tariffs. The removal of 10% export tariffs that continue to apply to our sector, and a reduction on import tariffs for products that are not produced in the UK, should remain priorities for ongoing negotiations.

-Ends-

Notes to Editors

1. Source: Aston Business School, Enhancing the Brexit Deal: Exploring the Impact of a UK–EU Veterinary Agreement on Agri-food Trade, April 2024

Read the Q1 Trade Snapshot report.

Read FDF’s response to new trade agreements with the EU, India and the US.

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, download our manifesto here or visit www.fdf.org.uk.  

For further enquires please contact the FDF Press Office or contact 020 7420 7140