Agriculture and processed foods market in the United Kingdom

Key opportunities for Canadian agriculture companies in the UK

• Alcoholic beverages (wines and spirits)
• Fish and seafood
• Bulk ingredients including pulses, grains, and special crops
• Health and wellness products

Notable challenges for Canadian agriculture companies in the UK

• Regulations: Agrifood products, especially animal products, are subject to strict regulations and standards before products can be placed on the market.  
• Competition: The UK is a mature market with strong competition from within and from other companies. Canadian companies must be clear on the value-add and how their products compare to local competition on performance and price. 
• Retailer dominance: Supermarket chains demand significant volume, and their concentration can make initial market access difficult. Trial listings must show results quickly or products will be de-listed.

UK business landscape

The food and drink industry is the UK’s largest manufacturing sector, and forms part of a diverse and complex supply chain. The agri-food chain contributed CAD 282 billion to national Gross Value Added (GVA) in 2023 (6.2%). This is equal to CAD 115 for every 1,840 added to the UK economy.

The GVA of the food chain (excluding agriculture and fishing) was CAD 2,57bn in 2023, increasing by 5.8% since 2022. GVA for all food and drink sectors increased in this period, with:

• catering increasing by 4.4%
• manufacturing increasing by 6.2%
• retail increasing by 6.6%
• and wholesale increasing by 6.7%