- Baking Europe

- 2 hours ago
- 2 min read
Britain's food and drink manufacturers have unveiled a ten-year plan aimed at doubling investment and significantly expanding exports, as the sector grapples with mounting pressures from rising costs and weakening consumer demand.
The Food and Drink Federation (FDF), representing 12,000 manufacturers across the country, is urging government backing for five key targets through to 2035. The ambitions include raising annual business investment from £5.8bn to £12bn, growing exports to £35bn, and unlocking a £14bn opportunity through technology adoption to generate over £50bn in gross value-added for the economy.
The proposals come at a challenging moment for the sector. Business confidence dropped to -60% in Q3 2025, with manufacturers citing regulatory pressures, uncertain trading conditions and increased international competition as significant headwinds.
Investment priorities and policy asks
The federation is pressing for specific policy changes to support its growth targets. These include extending R&D tax credits to cover healthier product innovation, relaxing import rules that currently prevent manufacturers from bringing in food samples for research purposes and improving access to existing robotics and technology funding streams.
The sector is also calling for matched export support across all UK nations, tax relief for precision fermentation scale-ups and the inclusion of sector-critical short courses within the Growth and Skills Levy to address skills gaps.
FDF Chief Executive Karen Betts noted that whilst the sector currently contributes £37bn to the economy and employs half a million people, "our industry can and should do so much more." She emphasised that achieving these ambitions would require "a stronger partnership with the whole of government, with clear, agreed aims, which create the conditions and the confidence for companies to invest."
The plan has secured backing from major players including Associated British Foods, Carlsberg Britvic, Danone, Mondelēz International, Nestlé UK, Premier Foods, and Tate & Lyle Sugars.
Government ministers have signalled support for the sector's priorities. Secretary of State for the Environment Emma Reynolds pointed to the government's Good Food Cycle partnership and ongoing negotiations for an SPS agreement with the EU to reduce regulatory burdens. Minister for Consumer Goods Kate Dearden highlighted the sector's role in the government's Trade Strategy.
The manufacturing base spans regions from Midlands cereals and bakery production to Scotland's oat milling operations and South East soup manufacturing, with current exports approaching £25bn annually.


