UK food and drink exports continue to spiral downwards

Food and drink exports have continued to decline in Q3, according to the latest Food & Drink Federation (FDF) data.

Although the value of food and non-alcoholic drink exports saw a humble uptick of 1.2%, the fall in volume was significant at 16.3%.

The decline has been knocked by a significant fall in alcohol export volumes which have been falling since 2022. In the year to date, the UK exported 265.1m litres of pure alcohol, a 40.6% drop between 2022-2024.

Trade with EU

The EU remains the UK’s biggest trading partner for food and beverages; while exports to Ireland and Germany increased by 3% and 1.4% respectively, they were the outliers. Overall, exports to the EU fell by 5.3% in the first nine months of the year, with the FDF highlighting ‘persistent administrative burdens’ as a big contributor to this decline.

Trade with US

The US is the nation’s third largest customer, with more than 10% of UK food and drink exports heading that way. This year, Americans enjoyed 460m cups of tea and 436m biscuits exported from Britain.

The UK has a big trade surplus with the US. So while the UK received £1bn of food and drink from the States - including nuts, condiments, wine and vodka - we exported much more (£1.6bn of products) across the pond.

This surplus is potentially one of the reasons Trump is looking to introduce blanket tariffs as he attempts to level the playing field.

Exports to the US from the UK have dropped 7.9% this year. As such, the FDF has flagged that ‘any opportunity’ to reduce friction at borders and avoid tariff increases will help the UK maintain and grow trade with this market.

Trade with CPTPP

This month saw the UK officially join the Comprehensive and Progressive agreement for Trans-Pacific Partnership (CPTPP) – a trade agreement of 12 nations, predominantly in the Asia-Pacific region.

CPTPP countries are the UK’s second biggest supplier of ingredients to the UK after the EU, with imports from the bloc rising 9.7% so far this year.

It’s estimated that this trading bloc will account for 15% of global GDP for the UK – the equivalent to £12 trillion.

This agreement means the UK now has tariff-free access when trading many products with Malaysia, improved export terms for several markets, and quicker border processes.

Manufacturers in the UK can import products like soy sauce, sesame oil, and cocoa butter tariff-free and benefit from more generous Rules of Origin, including cumulation provisions. This means that producers can use ingredients sourced from any of the CPTPP nations and their product can still be traded without tariffs among the bloc.

SMEs need more support

Commenting on the FDF’s trade snapshot, Balwinder Dhoot, director of industry growth and sustainability at the federation, said the figures highlight the challenges that the UK food and drink industry faces, in particular the 12,000 SMEs who are struggling with administrative overload.

“Providing more support for these businesses will help the UK strengthen its international trade and maintain its position on the global stage,” Dhoot said.

But he also flagged that there are many exciting opportunities beyond Europe, specifically flagging the US and CPTPP bloc.

“With millions of American consumers continuing to enjoy the iconic British tea and biscuits, it’s important that we maintain our positive trading relationship with this high value market.

“Meanwhile, in joining the Comprehensive and Progressive agreement for Trans-Pacific Partnership, CPTPP, we’ve strengthened our relationship with 11 new countries. By gaining these better terms for trading and removing friction at borders, food and drink manufacturers can access more markets and create more resilient supply chains.”