Food and drink Q1 export figures and new opportunities for agile producers

This week we shared our insights in the Food and Drink Federation’s (FDF) Q1 export report which was released to FDF members, many of whom are exporters, as well as the media and key players in the industry.

While the figures for the first quarter of 2020 demonstrated a drop of £700m compared to the same period in 2019, we do believe that there’s reason to be optimistic going forward, provided that food and drink manufacturers are adaptable and agile in their approach to international trade opportunities.

The figures showed that sales to the EU were hit the hardest, with total value falling by 17.4% compared to 2019, driven by the immediate impacts of Covid-19, including the closure of hospitality and travel sectors. Demand was more resilient in countries including Singapore, Canada and Norway, which each saw sales growth of more than 10%.

Declines were reported among the UK’s top ten products, with whisky, chocolate, cheese, salmon and gin seeing export value drops of over £20m. Pork, which saw an increase in value, and beef and vegetables, which saw volume increases, were exceptions to this.

One thing that we and our clients have observed is that global consumer habits, brought on by the pandemic and national lockdowns, have rapidly changed. Shopping patterns are different, there’s a greater reliance on online orders (including direct-to-consumer), and the types and formats of products that consumers now want has evolved. 

An example of this from one of the UK’s most popular crisp producers is there’s a fall in demand for single food-on-the-go packets in favour of larger at-home family-sized packs. As a result, we are currently helping them adapt their production processes to capitalise on this. 

In addition, with the foodservice sector significantly impacted, UK producers are having to find new ways to distribute and adapt their foodservice products for new domestic and overseas markets. The direct-to-consumer market is booming and will be a real opportunity for UK food and drink producers able to take advantage of this model here and abroad. 

As we are are now seeing countries, especially across Europe, starting to ease their restrictions, we expect these trends to continue as markets and supply chains adapt.

We have helped many well-known UK food and drink producers assess, adapt and scale-up their UK and overseas manufacturing and logistics operations quickly to fulfil new international orders, and are ready to help you too if you’re interested in the opportunities this ‘new normal’ will present over the coming months.

We also have partners in Europe and China who can help you with in-country expertise and support for all your project management and delivery needs.

If you’re interested in speaking to us about, please get in touch

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