Volumes Rebound After Years of Decline (Image Credits: Pexels)
The United Kingdom’s food and drink sector demonstrated remarkable resilience in 2025. Export volumes climbed even as new US tariffs posed significant hurdles. Industry data revealed a sector adapting to ongoing post-Brexit challenges while achieving unprecedented value milestones.[1][2]
Volumes Rebound After Years of Decline
Export volumes marked a notable upturn last year. Kilogram shipments rose 6% to 8.9 billion, while litre exports increased 6.2% to 1.3 billion. This progress signaled a welcome recovery for producers navigating complex trade landscapes.[1]
However, the figures remained well below pre-Brexit peaks. Food export volumes stood 31% lower than in 2019, according to analysis from the Food and Drink Federation (FDF). The organization highlighted a structural reset in export levels since 2020. Producers continued to adjust to new regulatory frictions with the European Union.
Value Milestone Amid Tariff Pressures
Total export values soared 4.8% to a record £25.6 billion, crossing the £25 billion threshold for the first time. Excluding alcohol, values climbed 6.9% to £18.1 billion. These gains reflected strong demand in key markets despite external shocks.[1][2]
US tariffs, introduced at 10%, impacted shipments in the second half of the year. Exports to the United States fell 8.6% year-on-year during that period, with infant formula among the hardest-hit categories. Overall, US-bound exports grew 3.6% to £2.8 billion for the full year. Categories like whisky faced price pressures, contributing to softer volumes.
Europe Holds Firm as Top Destination
Europe dominated trade flows, capturing 62.5% of exports and 74.1% of imports. Export values to the region advanced 6% to £16 billion. Within that, EU shipments reached £14.8 billion, up from £14 billion in 2024.[1]
Ireland and France ranked as the leading destinations, followed by the United States. Negotiations progressed on a new sanitary and phytosanitary agreement with the EU, targeted for mid-2027 implementation. Such developments offered hope for smoother future trade.
Standout Categories and Emerging Opportunities
Dairy products led the charge in performance. Milk and cream exports surged 22.5% in value and 10.3% in volume, approaching £1 billion. Cheese values rose 9.4% to £971 million. Whisky, the sector’s top earner, dipped slightly to £5.5 billion, with volumes down 4.3%.[1]
- Milk and cream: +22.5% value, nearing £1bn
- Cheese: +9.4% to £971m
- Whisky: £5.5bn, top category despite -0.8% value
- India exports: +12.4% to £330.3m post-FTA
- Mexico (CPTPP): +26.2% to £148.4m
New trade pacts fueled growth elsewhere. The UK-India free trade agreement, signed in July 2025, boosted shipments by 12.4% to £330.3 million. Accession to the CPTPP yielded initial benefits, with food volumes to members up 7.8%, highlighted by Mexico’s 26.2% jump.
Imports Surge as Non-EU Sources Gain Ground
Imports also hit records, rising 5.9% to £66.9 billion. Volumes increased 2.5% to 38.5 billion kilograms. Non-EU suppliers expanded fastest, with values up 11.8% to £20.7 billion and their share reaching 30.9%.[1]
| Category | Value (£bn) |
|---|---|
| Fruits | 5.8 |
| Poultry | 3.8 |
| Wine | 3.8 |
Fruits, poultry, and wine topped import values. This diversification underscored shifting global supply dynamics.
- Export values hit £25.6bn record, volumes up 6% despite headwinds.
- US tariffs curbed H2 growth; dairy and new markets shone.
- Post-Brexit reset persists, but trade deals signal brighter path ahead.
The 2025 results underscored the sector’s adaptability. Producers turned challenges into opportunities through innovation and diversification. As talks advance and deals activate, further gains appear likely. What strategies will define UK food exports next? Share your thoughts in the comments.[1]FDF Trade Snapshot
