The warnings from industry body British Berry Growers’ new report come despite a record-breaking year for the industry in 2024, reaching a total market value of £2bn for the first time.
Growth was fuelled by rising consumer demand, with berry sales volumes increasing by 4.3% in the past year and market penetration (the percentage of consumers buying berries) now reaching 85.3%.
Despite reaching this £2bn milestone, the rate at which the industry has grown significantly decelerated in recent years – the Compound Annual Growth Rate (CAGR) in the volume of berry sales dropped from 7.8% between 2012 and 2019, to just 1.3% between 2019 and 2023.
Nick Marston, chairman of British Berry Growers, said: “We are immensely proud of reaching this milestone, and of the industry’s resilience in the face of challenging operating conditions.
‘Tangible risks’
“But it is also clear that there are very tangible risks which threaten the industry’s future. In particular, it’s clear that retailers have a significant role to play in the industry’s recovery.
According to British Berry Growers, the industry’s recovery is not being sufficiently supported by fairer retailer returns.
Though the average retail price of berries rose by 14.5% between 2020 and 2023, the average price paid to growers by retailers only increased by 11.2% in the same period – less than half of the non-wage operating cost increases of 37% on average.
The report found that 71% of growers surveyed experienced operating cost increases in excess of 20% between 2020 and 2023. For the vast majority – 85% growers – revenue returns did not keep pace with the operating cost increases.
‘Struggling to expand production’
“Without their support, growers will struggle to expand production and meet the ever-growing demand for fresh British berries,” said Marston. “This would be a tragedy when the ongoing growth of the overall retail market gives a huge opportunity to increase our UK home production and self-sufficiency.”
British growers are also having to compete with more berries being imported from other markets. Despite the overall market growth for British and imported berries in the UK, the share of British berries dropped by 2.54%, while the volume of imported berries increased by 15.11%.
“As we start 2025, it is clear that collaborative action is essential to ensure the survival and continued growth of the British berry industry,” Marston continued.
“Retailers, policymakers, and industry stakeholders must come together to support British growers, through fairer pricing and extended access to a seasonal workforce, to ensure the future of one of the UK’s most important agricultural sectors.”
