4 min read - 29 Sep, 2025
Uplift in UK food exports driven by non-EU markets in H1 2025
In the first six months of the year, the UK exported 4.5 billion kg and 590 million litres of food and drink to over 200 countries worldwide, representing a 7.2% increase in export volumes compared to the same period in 2024. This increase follows a decline in food and drink exports last year.
The data, revealed in the latest Trade Snapshot from the Food and Drink Federation (FDF), shows that trade with the UK’s largest partner, the EU, showed steady growth of 4.2% in value terms compared to 2024. However, export growth was largely driven by new global trade opportunities, with non-EU exports increasing by more than a tenth (10.6%) compared to the first half (H1) of last year.
The US had a significant impact on the trade outlook in H1 2025, with exports of food and drink increasing by 18.9% to £1.4bn. This growth continued even after the additional 10% tariff took effect, reflecting the UK’s comparatively better deal in certain categories of food and drink compared to other nations.
Additionally, two years on from the signing of a trade deal with Australia and New Zealand, exports to New Zealand increased by almost a fifth (19.7%) in H1.
India also saw 11.6% growth. A new trade deal with India, signed in July 2025 and expected to take effect in 2026, will help build on this trend, with a removal or reduction of high Indian tariffs on selected UK food and drink exports over the next decade.
New data from the Food and Drink Federation shows an uplift in food trade, with export volumes up 7.2% in the first half of 2025 compared to 2024.
However, while the report shows green shoots for export growth, this follows a previous year of flat exports. With UK food and drink exports still 13% lower than 2023 levels, FDF is urging government to partner with industry to seize this trade growth and ensure it continues, turning these promising signs into a longer-term trend.
The FDF is seeking to work with government to set ambitious targets to grow overseas exports, and on a long-term plan to maximise new global trade opportunities, while providing businesses with the support and guidance they need to take advantage of these, notably smaller companies who might be new to selling abroad.
For example, to help build export momentum, government can help more businesses to trade with countries most impacted by US tariffs and where the UK is already seeing strong growth, such as Mexico, Canada and China. Retaliatory measures introduced by these countries have led to notable declines in food and drink exports from the US to these markets, opening up export opportunities for UK suppliers.
US tariffs are expected to have an impact in the second half of the year. FDF says it’s vital that the government works to reduce tariffs for certain products where the UK has received a higher rate than the EU, such as chocolate, ice cream, and soft drinks, so that UK manufacturers can remain competitive.
Growth in H1 2025 was driven by new global trade opportunities, with non-EU exports increasing by over a tenth (10.6%), outpacing EU export growth.
Across the rest of the world, a comprehensive trade agreement with the Gulf Cooperation Council (GCC) could also provide new customers for UK suppliers, with UK food and drink already seeing high demand in the region. Meanwhile, with exports to Turkey up 68.6% in H1, progressing an updated Free Trade Agreement could further boost this growth.
A new SPS agreement with the EU will also help remove significant barriers to trade, including complex and costly checks and certifications. Until the new agreement comes in, government can work to reduce border costs and avoid any unnecessary burden on businesses by providing a clear roadmap for businesses, with guidance and phased transition periods.
Balwinder Dhoot, director of growth and sustainability, FDF, said: “It’s positive to see an increase in export volumes compared with last year, and now we need to go further. Government and industry can work together to use this as a springboard to turbocharge export growth.
“We want to work with government to create a clear and ambitious target to boost the UK’s overseas food and drink sales, with a long-term plan to help us hit it. This could include improving access to global markets like Turkey and Mexico, ensuring the smooth implementation of an EU SPS agreement, bringing down US tariffs where they’re higher than those paid by the EU, and supporting businesses that want to trade with new markets. This would help give industry a much-needed boost, helping businesses to sell more world-class British food and drink around the globe.”
