News article
5 June 2019
UK food and drink exports: Biggest first quarter on record
Back to list of articles
- Q1 2019 exports of food and drink increased by 10.7% (y-o-y) to £5.8bn, almost
twice the
growth rate of exports in Q1 2018 (+6.3%) and the biggest first quarter sales
value on record.
- Export growth to non-EU markets (+12.2%) outpaced growth to EU markets (+9.9%).
This
was also the case for sales of branded goods.
- Growth of more than 20% was recorded in six of the UK's top 20 export markets:
the
Netherlands, China, Sweden, Japan, Taiwan and Saudi Arabia.
- However, growth may slow over the rest of 2019 with foreign buyers signalling
they are no
longer willing to buy from UK exporters due to ongoing Brexit uncertainty.
The Food and Drink Federation (FDF) has today published analysis showing that in the first
quarter of 2019 food and drink exports increased by 10.7% (y-o-y) to £5.8bn,
almost twice the growth
rate of Q1 2018 (+6.3%) and the biggest first quarter sales value on record.
Within that, Q1 2019
food and drink export growth to non-EU markets (+12.2%) outpaced growth to EU
markets (+9.9%).
This was also the case for exports of branded goods.
Growth of more than 20% was recorded in six of the UK's top 20 food and drink
export markets,
with Japan recording the highest growth rate at 52.5%. Exports of all of the
top
10 products increased
by value in Q1 2019, the strongest being salmon with growth of 40.9%.
Over the past 10 years, UK branded goods exports have increased by 110%. In Q1
2019, exports
to the Netherlands (13.5%) grew the quickest out of the top five markets for
branded goods. FDF's
industry ambition is to grow exports of branded food and non-alcoholic drink by
a third, from a 2014
baseline, to reach £6bn by 2020.
Brexit uncertainty and the Food and Drink Sector Deal
While Q1 exports have shown positive results, feedback received by FDF from
businesses at
recent trade fairs shows that key buyers in some of the top 20 markets are no
longer willing to buy
from UK exporters due to ongoing Brexit uncertainty. This could have a
significant impact on food
and drink export figures later in 2019.
In January 2018, the Food and Drink Sector Council was established as a formal
industry
partnership with Government created to improve the productivity and
sustainability of the UK food
and drink industry. Exports are among the Council's key priority areas, with
working groups set up to
drive activities and policy recommendations in these areas.
The Food and Drink Sector Council Exports Working Group, led by Graham Hutcheon,
Managing
Director, Group Operations, Edrington, aims to drive a step-change in food and
drink exports through
a range of activities. This includes supporting the successful launch of a Food and Drink
Sector Deal.
Saudi Arabia moves into top 20 exports markets
Through the Food and Drink Sector Deal, five target markets (China, the Gulf
region, the USA,
Japan, and India) have been identified as offering significant growth potential
for UK food and drink.
Sales to Saudi Arabia rose by 198% from Q1 2009 to Q1 2019. Between January and
March
2019, exports grew by 28.6%, moving the country into the UK's top 20 exports
markets. Saudi Arabia
was also the 11th biggest buyer of UK branded goods, recording growth of 82%,
driven by exports of
breakfast cereals, chocolate and sweet biscuits.
The top five UK products sold to Saudi Arabia in Q1 were oats, breakfast
cereals, chocolate,
sweet biscuits and eggs. Three-digit growth was recorded in nine of the top 20
UK export products
sold to Saudi Arabia, including sugar (+3,782%).
The full exports report, including supporting information about Q1 2019 food and
drink exports,
and exports reports from previous quarters are available on our website along with supporting
company case studies.
FDF's Quarterly Business Confidence surveys, covering the latest businesses
conditions, views
on the wider economy, and top opportunities and risks for the food and drink
manufacturing sector,
are available on our website.
Ian Wright CBE, Chief Executive, Food and Drink Federation, said:
“The food and drink industry continues to out-perform expectations, delivering
another
quarter of exceptional exports growth despite the damaging uncertainty with
which businesses have
to contend. The rapid growth to Saudi Arabia, a key target market in FDF's Food
and Drink Sector
Deal proposals, is just one example of this strength. With the right support in
place our industry could
deliver so much more. We urge Government to co-invest in our Sector Deal
proposals and help us to
provide the support our industry urgently needs to further enhance this growth.”
For more information, please contact Ella Stanbrook, Corporate Affairs Executive
(Media), on 020
7420 7131, ella.stanbrook@fdf.org.uk
Notes for editors:
- The Food and Drink Federation (FDF) is the voice of the food and drink
manufacturing
industry – the UK's largest manufacturing sector. For more information about
FDF
and the industry
we represent visit www.fdf.org.uk
- 'Branded' goods refer to manufactured products that have had their value
increased through
production. FDF's focus in terms of branded goods is on food and non-alcoholic
drink.
- Exports report and full exports data.
- Supporting case studies.
- The latest FDF Food & Drink Business Confidence Report.
More Information
Back to list of articles