The Food and Drink Federation (FDF) – backed by Associated British Foods, Premier Foods, and others – is urging the government to support the food & drink industry in its mission to unlock £50bn in growth over the next decade.
The plan would double annual investments, grow exports to £35bn, and position the UK as a global hub for food and drink innovation, according to the FDF which laid out the plan at its annual Investment Summit this week (19 November 2025).
With rising costs, regulatory pressures and uncertainty, weak consumer demand, and increasing competition from abroad, business confidence in the sector fell to -60% in Q3 2025.
It also comes as the Office for National Statistics (ONS) found that although consumer price inflation fell to 3.6% in the 12 months to October – down from 3.8% in September, and the first fall since March 2025 – food and drink inflation increased to 4.9%.
Nonetheless, the sector is determined to seize untapped growth, according to the trade body.
The call is backed by large manufacturers such as Associated British Foods and Premier Foods, as well as Carlsberg Britvic, Mondelēz International, Nestlé UK, Nomad Foods, and Tate & Lyle Sugars.
Outlined in the ‘Ambition for growth: powering productivity’ report, the growth plan comprises five key components:
- Doubling annual business investment from £5.8bn to £12bn
- Growing exports to £35bn
- Generating over £50bn in gross value-added (GVA) for the UK economy by unlocking a £14bn opportunity in technology adoption
- Make the UK the global hub for healthier product innovation and food and drink R&D
- Contribute to a 50% reduction in emissions across the agrifood supply chain and drive investment in the circular economy.
“Food and drink manufacturing is the backbone of the UK’s ‘everyday economy’. We contribute £37 billion to the economy, employ half a million people, and export nearly £25 billion of British products loved around the world. But our industry can and should do so much more,” said FDF CEO Karen Betts.
“We need to grow our investment in technology, environmental sustainability, and healthier products, to better serve the UK’s growing population and maintain our competitiveness. But to do that, we need a stronger partnership with the whole of government, with clear, agreed aims, which create the conditions and the confidence for companies to invest.”
From promoting British exports and strengthening supply chain resilience, to supporting investment in healthier products and innovative ingredients, the FDF believes there’s a big opportunity for UK food and drink to lead on the global stage.
As such, manufacturers are coming to the table with a host of ways the government can help, including broadening R&D tax credit eligibility to include healthier product innovation, relaxing ‘outdated and restrictive’ import rules that stop food manufacturers from bringing in food samples for R&D, and opening up existing funding in robotics and technology to the sector. They have also called for tax relief to help scale up innovation in cutting-edge precision fermentation, matching the devolved nations’ export support and promotion to help small businesses sell their products abroad, and supporting the transition to a higher skilled workforce by introducing short courses within the Growth and Skills Levy.
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