FDF welcomes export growth but urges action to secure UK food and drink future

UK food and drink exports increased by 7.2 percent in the first half of 2025, according to the latest Trade Snapshot from the Food and Drink Federation (FDF).

Between January and June, the UK shipped 4.5 billion kilograms and 590 million litres of food and drink to more than 200 countries worldwide. The rise marks a rebound after last year’s slump, but volumes remain 13 percent lower than in 2023.

Balwinder Dhoot, Director of Growth and Sustainability at the FDF, said:

It’s positive to see an increase in export volumes compared with last year, and now we need to go further. Government and industry can work together to use this as a springboard to turbocharge export growth.”

Growth beyond Europe

The EU remains the UK’s largest trading partner, with exports rising 4.2 percent by value compared with 2024. But the strongest gains came from outside Europe.

Trade with non-EU countries rose 10.6 percent, led by the United States, where sales surged 18.9 percent to £1.4 billion. This expansion came despite a new 10 percent US tariff introduced earlier this year.

New Zealand also recorded striking growth, with exports rising by nearly a fifth (19.7 percent), two years after the UK signed a trade deal with Australia and New Zealand. Shipments to India climbed 11.6 percent, and a trade agreement signed in July 2025 is expected to cut tariffs further when it takes effect in 2026.

Seizing global opportunities

The FDF said the figures highlight how new and emerging markets could help offset the risks of trade volatility. Turkey, for example, has already become a fast-growing market, with exports up 68.6 percent in H1 2025. An updated Free Trade Agreement could unlock further potential for UK suppliers while diversifying imports such as hazelnuts, sweet potatoes and olive oil.

Beyond Turkey, opportunities are also opening in markets such as Mexico, Canada and China, where retaliatory tariffs on US products have created space for UK exporters to grow. Demand across the Gulf is also rising, and a comprehensive agreement with the Gulf Cooperation Council could give British producers valuable access to new customers.

Policy support needed

Despite positive momentum, the FDF stressed that UK businesses still face competitive disadvantages. In the US, tariffs on UK chocolate and soft drinks stand at 20 percent, compared with 15 percent for EU exporters.

Progress on a new sanitary and phytosanitary (SPS) agreement with the EU could also help by cutting costly checks and certification. Until then, the FDF said government should ease border processes “by providing a clear roadmap for businesses, with guidance and phased transition periods.”

Dhoot concluded:

We want to work with government to create a clear and ambitious target to boost the UK’s overseas food and drink sales, with a long-term plan to help us hit it.

This could include improving access to global markets like Turkey and Mexico, ensuring the smooth implementation of an EU SPS agreement, bringing down US tariffs where they’re higher than those paid by the EU, and supporting businesses that want to trade with new markets.

This would help give industry a much-needed boost, helping businesses to sell more world-class British food and drink around the globe.”