Food and drink exports from the UK to the EU have seen a significant decline, dropping nearly 25% over the last five years compared to the pre-Brexit period. This information comes from a trade report by the UK’s Food and Drink Federation (FDF), which indicates a 23.4% decrease in exports during this timeframe.
The latest Trade Snapshot figures reveal a sharp decline in shipments to several key EU markets. For instance, exports to Germany plummeted by 59.1% between 2021 and 2025 when compared to the previous five-year period. Other notable reductions include a 51.9% drop in exports to Poland and a 39.9% decrease to Belgium.
Karen Betts, CEO of the FDF, emphasized the urgent need for easing trade barriers as food and drink businesses grapple with rising production costs, regulatory challenges, and declining consumer confidence domestically. She stated, “At a time when food and drink businesses are facing rising production costs, regulatory pressures, and weak consumer confidence at home, easing barriers to trade and growing our exports could not be more important.”
Despite these challenges, global food and drink exports have increased by 5.8% in the first three quarters of 2025. Non-EU exports led this growth, rising 6.2% in value terms year-on-year. Betts pointed out that the government could further assist exporters, particularly SMEs, to leverage this momentum.
A proposed Sanitary and Phytosanitary (SPS) agreement with the EU is viewed as a crucial step towards simplifying trade post-Brexit. In November, the European Council authorized negotiations with the UK aimed at establishing a common SPS zone and connecting their Emissions Trading Systems (ETS) for greenhouse gases. The goal of this SPS zone is to minimize inspections on agri-food products moving between the UK and EU.
During a recent summit in May, both parties committed to enhancing the cross-border trade of food and drinks. The UK government mentioned that “some routine checks on animal and plant products will be removed completely, allowing goods to flow freely again,” which could potentially lower food prices and increase selection for consumers.
However, the FDF has cautioned that these measures won’t eliminate all barriers. They call for renewed support for businesses during this adjustment, with a focus on clear transition periods that allow firms to adapt effectively. It’s important to recognize that the SPS agreement is just one element of a broader strategy; complementary policies related to packaging, labeling, and customs procedures are essential.
“The SPS agreement isn’t a silver bullet,” stated Betts. “Government will need to collaborate closely with industry to ensure it works effectively for business.”
While EU exports are declining, overall global food export volumes are on the rise, particularly in non-EU markets. The report highlights that UK food exports to countries outside the EU increased by 6.2% in value, with shipments to India rising by 9.6% and to Gulf Cooperation Council countries up by 6.3%. Furthermore, imports from non-EU countries have surged by 17.1% year-on-year, bringing total food and drink imports into the UK to £49.6 billion ($66.2 billion) so far this year.
The FDF aims to work with the UK government to bolster food and drink exports to £35 billion by 2035 while ensuring supply chain resilience. This includes prioritizing the SPS deal while also focusing on developing new global customers and ingredient suppliers.
With fresh trade agreements expected with the GCC and an improved deal with South Korea already announced, the FDF advocates for increased support for UK suppliers, particularly SMEs. This includes a proposed £2.6 million fund to boost global export opportunities and promote British products abroad, modeled on successful schemes from Scotland and Wales.
Betts concluded, “We’re calling on government to work with us on a ten-year export growth plan, backed by £2.6 million of government funds to help businesses expand into new markets. This will not only support the government’s growth mission but also enhance the resilience and competitiveness of the UK food and drink manufacturing sector.”
In summary, the food and beverage industry trends emphasize the need for proactive measures to adapt to changing market dynamics, particularly in the aftermath of Brexit. By focusing on strategic partnerships and streamlining processes, the food and drink business can position itself for future success.
