UK Food & Drink Exports Show Worrying Decline

In a clear signal that UK manufacturers are losing ground to global competitors, the Food and Drink Federation’s (FDF) latest Trade Snapshot report displays worrying signs of a downturn in the UK’s food and drink exports. In Q1 2026, food and drink exports fell by 4.8%, to £5.7bn. In volume terms, exports saw a 8.9% decline year-on-year, at 2.0bn kg. This is the lowest Q1 export volume seen in the past decade, excluding at the height of the pandemic1, and the third lowest since 2000.

Meanwhile, imports of food and drink to the UK gained ground, growing by 2.6% in the beginning of 2026 to £16.3bn, widening the gap between the UK’s food and drink exports and imports.

Non-EU Exports Slump, As US Tariffs Bite

Export decline was driven primarily by a drop in exports beyond the EU, which fell over a tenth (11.5%) compared to Q1 2025. Notably, UK exports to the US fell by over a quarter (27.9%) in value terms, showing the impact of the additional tariffs imposed by the US in April 2025.

At the same time, US food and drink manufacturers are strengthening their position in the UK market, with imports to the UK increasing over a tenth (11.5%) to £419.5m. This means the UK’s food and drink export surplus with the US has fallen 69.3%, from £359m to £110m in Q1 2026 – its lowest level since Brexit. The US are also set to benefit from proposed tariff suspensions announced by the UK government this year, which would make it cheaper for US businesses to export products like chocolate, biscuits, jams and spreads to the UK, while UK manufacturers face higher costs sending products to the US, meaning this trend is likely to persist.

Exports were also down to markets where the UK has recently signed trade deals. For example, food and drink exports to Comprehensive and Progressive Trans-Pacific Partnership members (CPTPP) fell 11.3%, while exports to India were also down 16.6% in volume terms, showing the importance of manufacturers being supported to reap the benefits of these deals.

The Cost Of Importing Ingredients Rises

The FDF Trade Snapshot shows that non-EU imports grew by 4.2% in Q1 2026 in value terms compared to 2025, while EU imports grew 1.9%. The report shows that the cost of importing ingredients and raw materials, like plastic packaging, is nearly two fifths (38.6%) higher than it was in January 2020. Alongside rising energy prices, and an ongoing pipeline of regulatory pressure, this is adding persistent pressure to the cost of producing food in the UK.

A Storm Is Brewing

With food and drink exports falling, imports rising as global competitors gain ground, and the cost of producing food in the UK high, the data suggests British food and drink manufacturers are struggling to keep pace with global competition at home and abroad. A sector that is being squeezed at home cannot seize opportunities globally. This presents a growing threat to the long-term resilience of the sector.

FDF is calling for government to take urgent action to protect the nation’s food security and the status of iconic British brands, by creating the right conditions for UK food and drink businesses to remain competitive.

Karen Betts, Chief Executive, The Food and Drink Federation (FDF) adds: “Food and drink businesses are part of the fabric of every community in the UK, and it’s concerning to see them struggling to compete overseas. The UK produces world-class food and drink, drawing on our heritage and our reputation for innovation, but we have to be able to remain competitive overseas against local products. The costs of producing food and drink in the UK are higher than in many competitor economies, from energy to employment, and constantly changing regulation only adds to these."

“There is plenty government can do to improve the competitiveness of our food and drink exporters, many of which are SMEs, from helping companies to access the benefits of trade deals to lowering the cost of doing business in the UK."

“The government’s current proposals to remove tariffs on imported food risk making a bad situation worse. It is very undermining of UK businesses and of the people they employ, and it undermines the UK’s food security in the longer term. Government should suspend tariffs on ingredients rather than manufactured products, to lower the cost of producing food here in the UK and to help businesses keep prices down for consumers.”

EU Exports Continue To Fall

EU exports also fell in Q1 2026 (6.9% in volume terms, compared to Q1 2025), continuing the downward trend that has been seen since 2019, reflecting the added cost and complexity of trading with our closest trade partner since Brexit. In particular, exports fell in value terms to the UK’s two largest overall export markets – Ireland (-6.3%) and France (-5.8%), compared to Q1 2025.

The Sanitary and Phytosanitary (SPS) agreement is set to remove some of this additional trade friction by removing the need for additional checks and certification when trading with the EU. It’s vital that businesses are given as much clarity as possible, and as soon as possible, so that they can reap the benefits of this agreement in the long-term, and begin to revitalise food exports to the EU.