market size UK
Size of UK Food Industry
The food and drink industry is the largest of the manufacturing sectors accounting for
15% of manufacturing overall, with a total turnover of £70bn. The industry employs some 500,000 people, equating to 13% of the UK manufacturing workforce. Food and drink remains the biggest spending category. In 2005, consumer spending on food and drink was nearly £153.8bn, 20% of total UK consumer expenditure.1
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Year on year UK consumer expenditure on food is increasing across all sectors.
Consumers appear to spend most on fruit and vegetables and meat and meat products. The food sector experiencing the largest growth in consumer expenditure is fruit and vegetables. The UK vegetable market tends to be dominated by national and regional firms, rather than multinationals.
The increasing variety of fruit available in supermarkets and the year-round availability is likely to result in a continuing increase in the consumption of fresh fruit.
Consumption of fresh green vegetables, whilst increasing, is at a much slower rate than fruit and consumption of fresh potatoes is likely to continue to decline as people change to pasta and rice as an alternative.
Demand for healthy foods is having an increasing influence on the market for dairy products, eggs, oils and fats. There is particularly strong demand, for example, for functional products, such as pro-biotic drinks and yoghurts, and cholesterol-reducing spreads and milk. Organic products are also buoyant, and products that link to particular health trends, such as milk with omega-3 oils, are benefiting in growth and increased sales.
As well as health concerns, consumers are apparently becoming more concerned about the source of their food. This has resulted in the emergence of some regional brands, for example, Definitely Devon and Deliciously Yorkshire, or regional cheese products such as Cheshire and Wensleydale.
The UK confectionery market is valued at an estimated £4.41bn
The food and drink industry is the largest of the manufacturing sectors accounting for
15% of manufacturing overall, with a total turnover of £70bn. The industry employs some 500,000 people, equating to 13% of the UK manufacturing workforce. Food and drink remains the biggest spending category. In 2005, consumer spending on food and drink was nearly £153.8bn, 20% of total UK consumer expenditure.1
Page 2
Year on year UK consumer expenditure on food is increasing across all sectors.
Consumers appear to spend most on fruit and vegetables and meat and meat products. The food sector experiencing the largest growth in consumer expenditure is fruit and vegetables. The UK vegetable market tends to be dominated by national and regional firms, rather than multinationals.
The increasing variety of fruit available in supermarkets and the year-round availability is likely to result in a continuing increase in the consumption of fresh fruit.
Consumption of fresh green vegetables, whilst increasing, is at a much slower rate than fruit and consumption of fresh potatoes is likely to continue to decline as people change to pasta and rice as an alternative.
Demand for healthy foods is having an increasing influence on the market for dairy products, eggs, oils and fats. There is particularly strong demand, for example, for functional products, such as pro-biotic drinks and yoghurts, and cholesterol-reducing spreads and milk. Organic products are also buoyant, and products that link to particular health trends, such as milk with omega-3 oils, are benefiting in growth and increased sales.
As well as health concerns, consumers are apparently becoming more concerned about the source of their food. This has resulted in the emergence of some regional brands, for example, Definitely Devon and Deliciously Yorkshire, or regional cheese products such as Cheshire and Wensleydale.
The UK confectionery market is valued at an estimated £4.41bn