Exporter Guide Annual - London - United Kingdom - UK2024-0026
Exporter Guide Annual - London - United Kingdom - UK2024-0026
Exporter Guide Annual - London - United Kingdom - UK2024-0026
Post: London
Report Highlights:
The UK food and drink industry has faced multiple challenges in recent years, including COVID-19,
cost-of-living, and adverse weather conditions. Wet weather in the UK has resulted in a significant
decrease in harvests, particularly for crops like wheat, barley, and oilseed rape. This shortage in
domestic production is expected to increase reliance on imports, putting pressure on supply chains and
increasing costs for essential food products. In 2023, the UK imported $3.2 billion worth of agriculture
and related products from the United States, a 7.1 percent increase from the previous year. Health,
wellness, and the environment are key factors for British consumers, who expect informative and
environmentally responsible packaging.
THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY
STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY
Executive Summary: According to the CIA World was valued at $41 billion with an annual turnover of $168
Factbook, the United Kingdom (UK) is an upper middle- billion, up 8 and 14.4 percent, respectively.
income country, with a GDP of $3.1 trillion. The country
is a leading trading power and financial center with the Food Service Industry: In 2023, total foodservice
third largest economy in Europe. Agriculture is intensive, food and drink sales amounted to $99 billion. The
highly mechanized, and efficient by European standards, industry has faced many challenges including the cost-
but accounts for less than one percent of the gross of-living crisis and soaring inflation rates. The
domestic product (GDP). UK agriculture produces about industry is consumer-oriented with a significant
58 percent of the country’s food needs. The UK is also investment in research and development. U.S.
heavily reliant on imports to meet the varied demands of foodservice chains are popular.
the UK consumer, who expects year-round availability of
all food products. Quick Facts CY 2023 ($1=£0.79 £1 = 1.26)
Total Imports of Consumer-Oriented Products:
Imports of Consumer-Oriented Products $62.0 billion
According to Trade Data Monitor (TDM), in 2023, the UK’s Top Consumer-Oriented Growth Products
UK imported consumer-oriented agricultural products 1) Eggs 6) Chocolate
totaled $62 billion, with the United States’ market 2) Chewing Gum 7) Fresh Vegetables
share at just under two percent or $1.18 billion. 3) Processed Vegetables 8) Condiments/Sauces
4) Pork and Pork Products 9) Coffee
Netherlan
ds - 12% 5) Bakery Goods 10) Non-alcoholic Bev.
Food Industry by Channels (USD billion) 2023
UK Retail Food Industry 279
France -
10% UK Food Service - HRI 99
UK Food Processing 168
U.S. Food and Agriculture Exports 3.2
Italy -
8%
Other - Top 10 Host Country Retailers
52%
1) Tesco 6) Lidl
2) Sainsbury‘s 7) Cooperative
Spain - 3) Asda 8) Waitrose
8% 4) Aldi 9) Iceland
Germany 5) Morrisons 10) Marks & Spencer
USA - 2% - 8%
GDP/Population
Population (2023) (millions): 68.1 GDP (trillions): $3.1
GDP per capita: $46,800
Food Retail Industry: The food retail sector is saturated,
Sources: CIA World Factbook, TDM, Kantar
highly consolidated, and competitive. The top four
Worldpanel, UK Government Statistics
retailers (see chart) together account for 66 percent of the
market, with Aldi overtaking Morrisons in 2022.
Independent stores face strong competition from the top
grocery stores and online retailers. Online sales are
Strength Weakness
expected to increase and be the second fastest-growing
UK is one of the largest U.S. products face
channel post-2024, as popularity grows for at-home
markets in Europe with competition from tariff-free
deliveries. UK consumers are willing to try foods from
one of the highest per products from the EU and
other countries but expect quality products at a
capita incomes globally Free Trade Agreement
competitive price.
(FTA) partners.
Food Processing Industry: According to the latest Food Opportunity Challenge
and Drink Federation, the food and drink sector is the Demand for sustainable, Higher cost-of-living caused
single largest employer in the UK manufacturing sector. healthy, free-from, consumers to spend less on
In 2022, around 456,000 people across the UK were vegetarian, and non-essential items and
employed in jobs associated with food and drink convenience products are switch to more private-label
manufacturing, an increase of 0.1 percent from 2021.In growing. products.
2022, the food and drink manufacturing sector’s output
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SECTION I. MARKET SUMMARY
The UK food and drink industry has faced several challenges in recent years, starting with the disruption
of the COVID-19 pandemic, followed by the escalating cost of living crisis, and now compounded by
the unprecedented wet weather that has plagued the UK. This year, the UK has experienced one of the
wettest winters on record, leaving fields waterlogged and unsuitable for planting new crops.
The impact on harvests is significant, with predictions of a nearly 20 percent decrease across the board.
This is particularly concerning for major crops like wheat, barley, and oilseed rape, with the Agriculture
and Horticulture Development Board (AHDB) forecasting declines of 26.5 percent, 33.1 percent, and
37.6 percent respectively compared to 2023.
This shortfall in domestic production will inevitably lead to increased reliance on imports, putting
further pressure on already stretched supply chains and driving up prices for essential food products like
bread, bakery goods, beer, and biscuits. As the UK copes with these challenges, the food and drink
industry face rising input costs, potential shortages, and heightened consumer sensitivity to affordability.
In 2023, the United Kingdom imported 3.2 billion in agriculture and related products from the United
States, a 7.1 percent increase over 2022. Based on USDA data obtained from the Global Agricultural
Trade System (GATS). U.S. exports of agriculture and related products to the UK were the highest since
records began in 1970. UK imports of U.S. agricultural related products (forestry, biodiesel, and
seafood) exceeded $1.29 billion surpassing consumer-oriented food and beverage products as the most
important UK market sector for U.S. agriculture. In 2023, UK imports of wood pellets for renewable
energy exceeded $1.25 billion and UK imports of U.S. consumer-oriented products exceeded $1.0
billion. From January to March 2024, early indications show that imports of agricultural and related
products from the United States have increased 28.8 percent over the same period in 2023. This could be
due to several factors, including the suspension of tariffs on some products as well as bad crops in the
UK and the need to import more.
UK Demographics:
In June 2022, according to the latest information from the UK Office for National Statistics (ONS), the
population of the UK was estimated at 67.6 million, up 500,000 from the previous year. Migration is a
main driver of the UK’s population growth, which has seen increases of Ukrainian refugees in the past
two years. According to latest ONS 2022 data, the Southeast of England and London are the most
populated, home to over a quarter (18.1 million) of the UK population. The UK has an ageing
population with projected figures suggesting there will be an additional 7.5 million people aged 65 years
and over in the UK over the next 50 years. The population is ethnically diverse. In 2023, Statista
estimates showed that 87.2 percent of the UK population was listed as white with 12.8 percent (8 million
people) belonging to mixed, non-white, and other ethnic groups. There are many ethnic groups in the
UK including large populations from Asia, the Caribbean, and Africa. The UK has a wide variety of
ethnic restaurants, particularly in London and other major cities in the country.
Latest Trends:
Sustainability: Consumer purchasing, and retailer trends are towards more sustainable and sustainably
produced food products. Consumers are increasingly conscious of the food they eat and the effect it has
on the environment. Consumers have noted that they want to feel that they are reducing greenhouse
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gases and reducing deforestation through their food choices. UK retailers have also adopted a variety of
requirements to meet sustainability and climate change targets by requiring products sold in stores to
meet private sustainability standards.
Packaging Regulations: In April 2022, a new Plastic Packaging Tax applies to plastic packaging
manufactured in, or imported into the UK, that does not contain at least 30 percent recycled plastic.
Several UK retailers joined together to sign up to the UK Plastics Pact, a voluntary initiative who work
closely with government and businesses with targets to reduce the use of plastics. Current targets include
that by 2025, 70 percent of plastic packaging will be recyclable and that most of the fresh fruit and
vegetables will be sold loose. Further information on Plastic Packing Tax can be found here and further
information on the UK Plastics Pact is found here.
• Slow population growth: CIA World Factbook 2023 figures show that population growth in the
UK is 0.49 percent and is comparable with many of the smaller European countries. Main
differences include Ireland with a growth rate of 0.91 percent, and Luxemburg with a growth rate
of 1.58 percent while Italy’s, and Germany’s population is currently in decline.
• Aging population: 11.9 million aged over 65 – 18.6 percent of population and 1.7 million over
85 years old – 2.4 percent of population (ONS)
• Number of household units growing: 28.4 million in 2023, increase of six percent over the last
10 years and 19.5 million families, an increase of six percent from 2013 (ONS)
• Smaller households: average UK household size is 2.36
• Personal disposable income decreased in 2023: due to higher cost-of-living expenses
• International consumer tastes: e.g., Chinese, Indian, Italian, Thai, Mexican
• Reduction in formal meal occasions: leading to an increase in “snacking” and “grazing”
• Increasing public debate centered on food: incorporating safety, environmental, ethical
(animal welfare), social and economic issues
• Increased retail concentration: increased market share of discount supermarkets.
• Larger population living in urban areas than rural areas
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Import conditions do vary between the UK and A free trade agreement between the UK and the EU
Europe, however, are similar. Therefore, this means EU competitors do not pay import duties on
makes the UK a good country for U.S. exporters goods to the UK. U.S. exporters are subject to 0-25
to explore before looking at the rest of Europe. percent import duty, depending on the product.
The United States is a popular destination for Popularity of specialty products from EU countries is
UK tourists. Familiarity with U.S. products is high, such as French cheeses, Spanish citrus, and
widespread. Italian pasta.
The UK market offers good opportunities for U.S. exporters of consumer-orientated products. U.S.
suppliers interested in exporting to the UK should consider the following:
Basic market research. Know the market sector you want to enter: retail, foodservice, or food
processing
Make sure the product follows UK food law, packaging, and labeling requirements
If required, obtain animal product health certificates
Know what the import duty and excise tax is for your product
Be aware of UK animal welfare standards
Include a promotion/advertising budget into your overall export plan
Highlight product selling points, such as sustainability, organic, plant-based etc.
Participate in food, beverage, and industry trade shows
Food Safety: As a result of food scares over the past two decades, the UK food supply chain is now
heavily scrutinized, meaning that UK retailers, foodservice operators and manufacturers are
uncompromising on traceability and quality assurances. UK buyers often require technical
specifications above the level mandated by government legislation.
Animal Welfare and Sustainability: Largely driven by the news coverage, U.S. food and
agriculture is perceived as having lower animal welfare and environmental standards than their
British counterparts with several supermarket chains preferring to support/stock British products.
Products Derived From “Genetic Modification” (GMOs) Products that contain genetically
engineered (GE) ingredients can only be sold in the UK if the GE trait has either received approval
by the EU prior to January 2021 or more recently has been authorized for the market in Great Britain
(England, Scotland, and Wales), having been subject to the UK’s own risk analysis process. In
Northern Ireland, EU Food Law on GE products continues to apply under the current terms of the
Protocol on Ireland/Northern Ireland, as amended by the Windsor Framework. The UK is currently
reviewing applications received through the Regulated Product Applications and as changes are
made information will be provided in the register which provides information on the GMOs
authorized for import and use in GM food and feed in Great Britain. Products with permitted GE
ingredients can be sold and require appropriate labeling. Guidance for this can be found here:
Labeling of Genetically Modified Foods. A guide to regulations can be found here. In the British
market, imports of U.S. candy, snacks, cookies, and other high-demand products have less
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sensitivity when it comes to containing GE ingredients. However, in the mainstream UK market, GE
ingredients are not routinely incorporated into grocery products. Many supermarket and foodservice
chains, as well as manufacturers, have taken a non-GE approach, and it will depend on consumer
demand and the route to market for your product as to whether it will be accepted, since the presence
of GE ingredients above 0.9 percent will trigger a labeling requirement.
Organic: The Soil Association Organic Market Report 2024 highlights that in 2023, UK sales of
organic food and drink increased for their twelfth year despite the cost-of-living crisis. In 2023, total
annual sales of organic products reached $4.0 billion (£3.2 billion), an increase of two percent on the
previous year. In 2023, sales of organic products in supermarkets increased by 2.7 percent and are
now worth over $2.5 billion (£2 billion). Independent retailers saw sales increase by 10 percent to
over $599 million (£475 million), however, food service which experienced exceptional growth in
2022 of 156 percent remained stable in 2023. Sainsbury’s is the largest retailer of organic products,
with online retailers Ocado and Amazon also seeing good growth.
Health: Consumers are looking for food to improve their health, which is driving sales of premium,
less processed food, functional food, fresh fruit, fruit juices and low-fat or low sugar processed food.
Sales of vegetarian and plant-based products have increased significantly.
On January 31, 2024, the Border Target Operating Model, the UK’s new approach to Safety and
Security controls and Sanitary and Phytosanitary (SPS) controls at the border, came into effect and will
be applicable equally to goods from the EU and goods from the rest of the world. This will include the
requirement for pre-notification of SPS goods from the EU, and a requirement for certificates for animal
and animal products, plant and plant products, and other products of high risk. This is already the case
for imports from the United States and other third countries.
Northern Ireland (NI) is subject to separate arrangements under the Protocol on Ireland/Northern Ireland
(the Protocol) that accompanied the agreement between the UK and the EU addressing the UK’s
withdrawal from the EU. Checks on goods moving from Great Britain (GB) into Northern Ireland (NI)
began on January 1, 2021, although certain food products received grace periods before checks came
into force. On February 27, 2023, the UK and the EU jointly announced the Windsor Framework to
address issues regarding the Protocol. The introduction of new trade easements for goods moving from
GB to NI under the Windsor Framework began on October 1, 2023, and will continue to be
implemented through 2025. When fully implemented, the Windsor Framework will apply UK
regulations regarding food safety, value-added tax, and excise rates. It will also retain Northern Ireland’s
place in the UK internal market and access to the EU market. As such, NI continues to follow EU food
laws. GB now has regulatory autonomy, although in practice it is currently enforcing EU law that it has
rolled over into domestic law.
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U.S. exporters should ensure that UK importers are apprised of the latest requirements by checking with
their local Trading Standards Office, the Food Standards Agency, or Port Health Authority. FAS/USDA
London has two Food and Agricultural Import Regulations and Standards reports – a Country report,
and an Export Certificate report, that provide certificate requirement information for animal products
and high risk products not of animal origin, as well as guidance on labeling and ingredient requirements.
U.S. beef, poultry, and dairy products face significant barriers to entry into the UK. To obtain the
necessary export certification from USDA’s Food Safety Inspection Service (FSIS), U.S. poultry must
not be treated with pathogen reduction treatments. As this practice is approved by the FDA and is
widespread in the United States, an effective import ban is in place. U.S beef and poultry must also be
slaughtered and processed in a UK approved establishment. All U.S. beef products must come from
Non-Hormone Treated Cattle. Information from USDA’s Food Safety and Inspection Service can be
found here.
Dairy products must come from a UK approved establishment. For dairy, the approval of plants is
managed by FDA (but the export license is issued by the Animal Plant Health Inspection Service and
Agricultural Marketing Service). All animal and animal products require an import license, be it Product
of Animal Origin (POAO), milk and milk products, etc. Further information can be obtained from the
Animal Health Import Team.
Organic: The United States has an organic equivalence arrangement with the UK. This means that
organic products certified to either the USDA or UK organic standards may be labeled and sold as
organic in both countries if the products meet the terms of the arrangement. Label guidance for organic
foods can be found at: Trading and labelling organic food and Importing organic food to the UK. UK
competent authority is Department for Environment, Food & Rural Affairs (Defra). The U.S. competent
authority is the National Organic Program and Agricultural Marketing Service/USDA .
In 2024, the UK retail food and drink sector continues to face many challenges. Inflation has fallen
significantly since it hit 11.2 percent in October 2022, however, with prices not falling, inflation remains
a major challenge, impacting both consumer spending and business costs.
As grocery prices continue to rise, sales continue to grow for value-oriented products. Online,
convenience stores and discounter stores all remain popular avenues for shopping. Consumers are
increasingly focused on sustainability, supporting brands committed to ethical sourcing and
environmentally friendly packaging.
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Shoppers are increasingly prioritizing their well-being, actively seeking out healthier alternatives. This
shift has increased the consumption of fruit, vegetables, and plant-based products. However, challenges
remain, including labor shortages, supply chain disruptions, and the ongoing cost of living crisis.
Retailers continue to adapt to these pressures, embracing innovation, and prioritizing customer loyalty
through their loyalty programs.
According to Mintel, the UK food and grocery market is currently valued at $273 billion (£217.2 billion)
and is forecast to reach $304 billion (£241.3 billion) by 2028. In 2023, according to ONS average UK
households spent 11.8 percent of their annual budgets on food and non-alcoholic drinks, whereas the
lowest 20 percent of households it amounted to14.8 percent of their income. Another three percent was
spent on alcohol. The average person spent $2,693 (£2,137) on groceries including alcohol and $585.75
(£464.88) on eating out in 2023. The amount spent on food and drink eaten at home has increased,
whereas the amount spent eating out has decreased by 38.2 percent since 2019, this is due to increased
cost of living and increased food prices with consumers having less disposable income for eating out.
Food and grocery is the next largest area of expenditure after housing, fuel, and energy.
According to Whole Foods Market UK, predicted food trends for 2024 include: mushrooms and
legumes as plant based alternatives; buckwheat, a superfood and an excellent source of protein; plant
based seafood bringing flavor and texture to rival the real thing; spicy foods such as sauces and chili
oils; and gourmet noodles.
Kantar’s latest statistics show that five supermarket chains dominate UK food retailing, accounting for
74.4 percent of the market. Aldi, a discount supermarket has maintained its market share having
overtaken Morrisons to take fourth position in 2021. The discounters Aldi and Lidl have a combined
market share of 18.1 percent with this growing year-on-year. Tesco is the market leader, with 27.6
percent market share, followed by Sainsbury’s with 15.1 percent, Asda with 13.1 percent, Aldi with 10
percent and Morrison’s has 8.6 percent. Other UK supermarket chains include Lidl, The Cooperative,
Waitrose, Iceland, and Marks and Spencer.
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Health, wellness, and the environment continue to be key purchasing factors for British consumers.
Consumers expect packaging to be informative and environmentally responsible. For more information
on the retail sector, please see the latest UK Retail Report.
The UK foodservice market has witnessed significant changes in recent years, driven by several factors
including changing consumer preferences, technological advancements, and the impact of the COVID-
19 pandemic. Consumers are increasingly looking for quick and easy dining options that cater to their
busy lifestyles. This has led to a rise in the popularity of fast-casual restaurants, and meal delivery
services. The pandemic accelerated the adoption of digital technologies, with many restaurants
implementing online ordering, contactless payment systems, and mobile apps to enhance customer
convenience and safety. There has also been a growing emphasis on sustainability and ethical sourcing,
with consumers becoming increasingly conscious of the environmental and social impact of their food
choices. Independent restaurants have also proved popular, offering unique and innovative dining
experiences that cater to the diverse tastes of consumers.
In April 2024, foodservice price inflation dipped below 10 percent, marking a significant milestone after
two years of relentless increases. This provides hope for the sector, which has been struggling with
escalating costs across the board, from raw ingredients to energy and labor. While the easing inflation is
good, it is important to mention that this remains more than double the overall retail inflation rate. For
more information, please see the latest Food Service - Hotel Restaurant and Institutional Industry report.
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Genetically modified products that are not approved in the UK
According to 2023 USDA BICO data, in 2023, the largest export growth by value was in U.S. beef and
beef products and soybean meal up 557 percent and 508 percent respectively. The largest declines were
animal fats and cotton with exports decreasing by 93 and 77 percent respectively. The growth of U.S.
exports of ethanol is likely due to the UK increasing its fuel ethanol blend to E10, driving increased
demand for the product. For the first time in several years, U.S. agricultural exports of consumer-
oriented food and beverage products have dropped below $1 billion, this can be attributed to the strength
of the U.S. dollar, and cost of living crisis in the UK. Exports in 2023, amounted to 950 million,
however, remain an important sector for the UK.
If you have any questions or comments about this report, require a listing of UK importers or need
assistance exporting to the United Kingdom, please contact the USDA office in London.
Please review and follow FAS London’s social media sites: Twitter: @USagricultureUK, Instagram:
@SavortheStates, Website: www.savorthestates.org and LinkedIn account.
Department for Environment, Food & Rural Affairs – Government Agency for Agriculture.
Tel: +44 20 7238 6951 E-mail: [email protected] Website: www.defra.gov.uk
Food Standards Agency - Government Association on UK food safety standards and policies
Tel: +44 330 332 7149 Email: [email protected] Website: www.food.gov.uk
UK Trade Associations
Institute of Grocery Distribution - Food and grocery chain trade association.
Tel: +44 1923 857141 E-mail: [email protected] Web: www.igd.com
Food and Drink Federation - Trade association for UK food and drink manufacturing industry.
Tel: +44 20 7836 2460 E-mail: [email protected] Website: www.fdf.org.uk
Fresh Produce Consortium - UK trade association for the fresh produce industry
Tel: +44 1733 237117 E-mail: [email protected] Website: www.freshproduce.org.uk
Health Food Manufacturer’s Association - Association for health products industry.
Tel: +44 20 8481 7100 E-mail: [email protected] Website: www.hfma.co.uk
British Frozen Food Federation - Trade association for all aspects of the frozen food industry.
Tel: +44 1400 283 090, E-mail: [email protected] Website: www.bfff.co.uk
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Appendix 1
Top Imports from the United States of Most Popular Products, 2023
For more detailed U.S. trade statistics check: USDA’s Global Agricultural Trade System (GATS).
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