Unlocking the UK’s F&B market: Opportunities for Indian exporters

Trade Partner, zLead Slider

The UK’s food and beverage (F&B) market, valued at US$ 225.1 billion in 2023, is the largest manufacturing industry in the country and a major importer of global products. As the sixth-largest importer of F&B products, with imports growing at a 5-year CAGR of 3.9%, the UK offers significant opportunities for Indian exporters.

This article analyzes the UK’s F&B market landscape and India’s current position, where Indian exports like cereals and sugars have shown strong growth, but there is still untapped potential in key segments such as beverages and processed foods. With a 5-year CAGR of 8.3%, India is the UK’s 14th largest F&B supplier, but further growth is achievable.

As India and the UK move towards finalizing a free trade agreement, addressing non-tariff barriers could enhance export opportunities, making this a strategic time for Indian F&B exporters to explore and expand in the UK market.

The UK’s food and beverages market is the largest manufacturing industry in the country, with a turnover of US$ 136.5 billion, surpassing the combined value of the automotive and aerospace industries. According to a report by GlobalData, the market was estimated at £ 171.9 billion (US$ 225.1 billion) in 2023, with a projected CAGR of over 3% from 2022-27.

In terms of trade, the UK was the sixth largest importer of F&B products globally in 2023, with a total imported value of US$ 73.4 billion. Imports have grown at a 5-year CAGR of 3.9%. This undoubtedly makes it one of the most lucrative markets for the F&B sector.

UK’s top source countries for F&B imports in 2023 were the Netherlands (US$ 6.8 billion), France (US$ 6.6 billion), Spain (US$ 5.8 billion), Germany (US$ 5.7 billion) and Italy (US$ 5.6 billion). On the other hand, in terms of processed/prepared food products (HS 16-22), its top 5 source countries were France (US$ 4.9 billion), Italy (US$ 4.2 billion), Germany (US$ 4 billion), Netherlands (US$ 3.4 billion) and Belgium (US$ 2.6 billion).

When we look at UK’s imports by chapters (HS 2 digit), the break up is as follows:

It may be noted that the share of prepared foodstuffs (HS 16-22) in UK’s F&B imports is quite high at around 53%.

India’s F&B export to UK

India’s F&B export to UK was worth US$ 1.1 billion in 2023, showcasing a 5-year CAGR of 8.3%. With this, India was ranked as the 14th largest exporter of F&B products to the UK, with a share of 1.4%. Conversely, the UK was India’s 10th largest export market in 2023, with a share of 2.1% in India’s overall exports.

On closely analysing UK’s food & beverages imports from India, one can clearly see that there is a lot of untapped potential. The top 9 segments account for over 90% of UK’s F&B imports from India. The share is highly skewed in favour of Cereals (22.5%), Coffee, tea, mate & spices (13.6%) and Fish & crustaceans (12.6%).

It must also be noted that there is a significant variation in segment-wise share when we compare India’s exports to the UK’s imports. For instance, beverages and spirits is the top import of the UK, whereas India’s exports in this category are very low at US$ 2.9 million. Now we further take a look at India’s market share and growth trends in these products.

India’s top 10 exported F&B products to the UK

Product label	Exports in 2018 (US$ mn)	Exports in 2023 (US$ mn)	India’s market share in UK’s imports (%)	5-year CAGR (%)
Cereals	81.9	237.9	11.1%	23.8%
Coffee, tea, spices	139.3	144.1	7.1%	0.7%
Fish & crustaceans	123	133	4.5%	1.6%
Edible vegetables…	53.3	101.4	2.1%	13.7%
Prepns of vegetables, fruit, nuts…	72.5	89.4	1.7%	4.3%
Misc edible prepns	26.2	69.8	1.5%	21.7%
Sugars & sugar confectionery	15.9	68.9	3.0%	34.1%
Edible fruit and nuts	75.3	61.8	1.0%	-3.9%
Prepns of cereals…	18.1	49	0.7%	22.0%
Oilseeds	27	27.1	1.6%	0.1%

Source: ITC Trade Map

The fastest growing products based on 5-year CAGR for India are Sugars & sugar confectionery (34.1%), Cereals (23.8%) and Preparations of cereals (22%). Now further at the 6-digit level, we checked out the top 10 fastest growing food & beverages export products by India to the UK (with a minimum threshold of US$ 10 million). The results are as follows:

Fastest growing F&B product exports by India to the UK

Fastest growing F&B product exports to the UK-Tpci

Source: ITC Trade Map; figures in brackets indicate 5-year CAGR from 2018-2023

Future outlook

As the analysis indicates, Indian F&B exporters must take a proactive approach to explore the untapped potential in the UK market, particularly in the processed food segment. There are clear opportunities to expand market share in growing categories, while also diversifying the export portfolio by entering niche segments where Indian products have yet to gain traction. To capitalize on these opportunities, it is essential to conduct in-depth market research, alongside targeted engagements with key stakeholders such as importers, buyers, distributors, and retail chains to identify the optimal product-market fit.

As India and the UK approach the conclusion of their free trade agreement, the F&B industry will closely monitor the agreement’s potential impact on exports. While tariff reductions may not significantly alter the current trade landscape, the agreement’s handling of non-tariff barriers—such as the harmonization of food safety standards, streamlined certification processes, and more efficient customs procedures—will be crucial. Positive developments in these areas could enhance market access, reduce operational complexity, and create a more favorable export environment, making this an opportune moment for Indian F&B exporters to strategically position themselves in the UK market.

Are you an F&B exporter interested in expanding into the UK market? We’re here to assist you. Kindly share a brief overview of your business and any specific queries with Nisha Parveen, Executive Officer – Research, at researchdesk@tpci.in or contact us at +91 9870949329. We’ll be happy to get back to you with tailored insights and information on our services.