Almost two-thirds (63%) of UK manufacturers believe the opportunities for 2025 outweigh the risks – representing a (albeit marginal) 1% rise from the previous year. This is despite only 37% expecting an improvement in the UK’s economic conditions.
The report shows that 68% of manufacturers plan to tackle rising costs by boosting productivity, with 29% looking to technology, cloud and artificial intelligence to succeed in 2025.
Meanwhile, others are exploring expanded product offerings and new revenue streams as ways to mitigate costs. Nearly half (47%) see expanding their product portfolio as a key 2025 growth strategy, followed by exporting to new countries (37%).
Looking specifically at food and drink in the UK and Ireland, Aptean’s latest trends report found similar trends among companies, with many looking to improve efficiencies with tech investment.
Changing consumer preferences
The software company’s report showed F&B companies are most worried about keeping pace with customers in 2025, with 33% citing changing preferences as a significant concern – placing it above sustainability, cybersecurity and inflation.
There has also been mounting concerns around changing regulation and legislation, with 30% describing the pressure as ‘significant’ – a climb of 16% compared to 2024.
These worries have fuelled interest into performance and efficiency analysis among the sector, with 65% of food and beverage companies saying that quickly obtaining and analysing data on these two areas is their top strategic priority for 2025. However, while data analysis is the top priority overall, smaller firms (£10-19m revenue) are said to be more focused on using tech to drive inventory improvements.
The report also showed that 51% of F&B firms want to invest in software to measure and improve overall equipment effectiveness in the next 12-24 months, and 41% plan to invest in enterprise asset management solutions.
Meanwhile, Aptean is forecasting an uplift in the use of business intelligence (BI) tools to better understand customer demand, with its report showing almost half (46%) plan to invest in BI software.
The company’s findings also highlighted keen interest in artificial intelligence (AI) among F&B firms, with 54% saying they are in process of implementing AI – more than double compared to 12 months ago. Twenty-eight percent said they are already using AI, compared to just 6% at the end of 2023.
Food and drink companies cited the automation of routine tasks (35%) and better customer insights (33%) as key benefits for AI rollout. Fewer (23%) referenced more accurate data analysis as a benefit, which Aptean pinpoints as an untapped market for the future, as producers look to enhance performance and efficiencies further.
While manufacturers look to mitigate against price hikes with NPD and tech investment, Make UK’s findings also revealed that many in manufacturing (as a whole) will pass their increased costs onto consumers.
If costs are passed on there could be significant implications for inflation in the year ahead. Increased costs on consumers could also risk a drop in demand, in particular for sectors where price sensitivity to demand is relatively high. As the UK’s largest manufacturing sector if demand for UK food and drink falls Britain’s manufacturing output would take a big hit.
To navigate this year, manufacturers will need to strike a careful balance between managing their financial pressures and making the most of growth opportunities.
For more insights, read our 2025 food and drink trends report, available here.
