COUNTRY PROFILE
Discover more about the United Kingdom market including overviews about the retail, foodservice, and food-processing sectors. Events, resources, and more are linked throughout the profile.
2nd
The UK is 2nd largest market for the export of U.S. processed food in Europe
$3.8 billion
In 2024, the UK imported $3.8 billion worth of agriculture and related products from the U.S>
USDA’s Office of Agricultural Affairs, (OAA), in London, hereinafter referred to as “FAS Post London” reports that the UK food and drink industry has faced multiple challenges in recent years, including COVID-19, cost-of-living, and adverse weather conditions. A shortage in domestic production is expected to increase reliance on imports, putting pressure on supply chains and increasing costs for essential food products. In 2024, the UK imported $3.8 billion worth of agriculture and related products from the United States, a 20% increase from the previous year and a new record high. Health, wellness, and the environment are key factors for British consumers, who expect informative and environmentally responsible packaging.
The UK is a top market for the export of U.S. processed foods, ranking second in Europe and ninth nationally in 2024 at US$926.7 million, an increase of 13% from 2023.
Top processed food exports to the UK in 2024 included:
Condiments, Sauces, Jams, and Jellies
$114 billion
Retail packaged food sales in the UK were estimated to reach US$114 billion in 2024
82%
The top six food retailers account for 82% of the UK market
$136.7 billion
By 2029, the value of the UK retail packaged food market was anticipated to reach US$136.7 billion
According to Euromonitor, retail sales in the packaged food market in the UK were estimated to reach US$114 billion in 2024. The UK is now the seventh largest package food market in the world and the third largest in all of Europe. By the year 2029, the retail sales in the packaged food market in the UK is expected to reach US$136.7 billion, a growth rate of 14.4%.
FAS Post London reports that the UK food retail sector is saturated, highly consolidated, and competitive. The top six retail outfits together account for 82% of the market. Discounters continue to gain market share and increasingly where consumers conduct their main shop. Independent stores face strong competition from the top grocery stores and online retailers. Online sales account for 13.1% of all grocery sales, with 59% of consumers conducting some grocery shopping online. UK consumers are willing to try foods from other countries but expect quality products at a competitive price.
FAS Post London reports that products in the market that have good sales potential include processed products; dried and processed fruit; nuts; fish and seafood; meat; drinks; and food ingredients.
FAS Post London reports that in 2024, the food-to-go sector in the UK has emerged as a significant driver of growth within the broader foodservice industry, responding to changing consumer preferences for convenience and quick meal options. Demand for takeaway and on-the-go meals continues to rise as more individuals manage busier schedules. In 2024, the European Union continues to be a key competitor to the U.S. in sourcing the HRI sector, with 24% of food consumed in the UK sourced from the EU.
FAS Post London reports that the best product prospects for U.S. exporters of foodservice products in the market that have good sales potential: processed products; dried and processed fruit; nuts; fish and seafood; meat; drinks; and food ingredients.
40%
The UK imports over 40% of food products to meet consumer demand
97%
97% of the 12,460 food and drink manufacturing businesses in the United Kingdom were small to medium-sized enterprises
FAS Post London reports that the UK food ingredients sector is a thriving and competitive market, driven by changing consumer demands, technological advancements, and an emphasis on quality and safety. Current trends include innovation, sustainable packaging, food with health benefits, and plant-based products. The UK climate limits growing seasons and products that can be grown, resulting in the UK importing over 40% of food products to meet consumer demand.
The largest food manufacturing sectors in order of importance are meat processing, dairy products, bakery products, animal feeds, and grains. The largest drink manufacturing sectors are soft drinks, spirits, beer, and cider.
FAS Post London reports that products present in the market, which have good sales potential, include U.S. products which can be found in high-quality, innovative, health-conscious, planet conscious, and plant-based food ingredient products. Also, wheat products and rice; dry beans and legumes; dried fruit and nuts; specialty seeds; natural colors, flavors, additives for processed food and drink manufacturing; gums and resins; soybeans; and distillers dried grains.
