The latest ‘Trade Snapshot’ report from the Food and Drink Federation (FDF) highlights a concerning trend in the UK’s food and beverage exports, which have decreased by 8.9% in volume compared to the previous year.
In the first quarter of 2026, these exports dropped by 4.8% to £5.7 billion, representing the most significant decline in a decade, aside from the peak of the pandemic, and ranking as the third lowest since 2000. Conversely, imports rose by 2.6% during the same period, reaching £16.3 billion, thereby increasing the disparity between exports and imports in the UK’s food industry.
The primary cause of this export decline stems from reduced trade with non-EU countries, which the FDF reports has plummeted by 11.5% year-on-year. A significant contributor to this downturn appears to be the steep 27.9% reduction in the value of UK exports to the United States, largely a consequence of the additional tariffs enacted by the US in April 2025. In contrast, UK imports from the US saw an increase of 11.5% to £419.5 million, resulting in a staggering 69.3% decrease in the UK’s food and beverage export surplus with the US, which fell from £359 million to just £110 million in Q1 2026, marking its lowest point since Brexit.
The UK government’s proposed tariff suspensions could potentially lower costs for US companies exporting items like chocolate, biscuits, jams, and spreads to the UK. Meanwhile, British manufacturers may face increased expenses when sending goods to the US. Exports have also declined in regions where the UK has recently established trade agreements, including a 11.3% drop in exports to members of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), and a 16.6% reduction in trade volume with India.
The FDF has raised alarm bells regarding the current situation, warning that as exports diminish and imports rise, coupled with high production costs, British food and beverage producers are finding it increasingly difficult to compete domestically and internationally. This stagnation presents a threat to the long-term sustainability of the UK’s food and beverage sector.
To address these challenges, the federation appeals to the government 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, the FDF’s chief executive, expressed concern, stating: “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.”
Betts added: “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.”