UK beer sales at lowest level in a decade at £3.1bn

The manufacture of fruit and vegetable juice was the fastest growing sub sector in the UK food industry, growing 17% from £654m in 2017 to £768m in 2018, according to analysis of the latest ONS PRODCOM data by Santander.

Research shows that more than half of people aged 16 to 24 consume juice drinks at least once a day. Consumption of smoothies has seen the biggest increase among all fruit juice drinks with Brits spending £112m alone on these last year alone.

Sales of UK manufactured beer have meanwhile hit their lowest level in a decade at £3.1bn, down from £3.7bn the year before, as young people increasingly turn to alcohol free alternatives. Beer sales reached their peak in 2009, when Brits consumed £4.8bn in beer.

Food and drink remained the largest UK manufacturing sector in 2018, reporting sales of £71.8bn, a 3% increase on 2017. Overall UK manufacturing sales hit a record high of £390.1bn in 2018, an increase of £9.4bn (2.5%) from the previous year.

Andrew Williams, Head of Food & Drink Sector, Santander UK, said, “Food and drink manufacturing is vital to the health of the economy and the UK is widely seen as a global leader in product innovation. The last decade has seen the food and drink industry shaken up with huge shifts in consumer buying habits, from growing interest in veganism to juice and smoothie diets. Manufacturers are having to respond quicker than ever to develop new products to meet customer demand, a pattern which is likely to continue as Brits explore the latest food fads.”

Ice cream was the second fastest growing food manufacturing sub sector, increasing 14% from £383m to £437m in manufacturing sales value.  An unusually hot summer and a shake-up of manufacturers’ product offering, including allergy-friendly and low-calorie options, boosted sales across the UK. The rise of consumers adopting a plant-based diet saw sales of vegan ice cream jump by 26%.

Despite the surge in sales of fruit and vegetable and ice cream, British staples of cheese (£7.8bn), bread, cakes and pastries (£6 billion) and processed meat (£7.9bn) held their place as the foods with the highest sales in the UK overall. UK manufacturing remains the ninth biggest in the world, contributing over 45% of all UK exports.

Santander has a dedicated team working with a range of food and manufacturers, from coffee experts to Cornish sea salt producers to help establish trade links with international buyers. As part of helping manufacturers grow their businesses, the team of experts regularly organise international delegations for businesses to meet potential buyers and suppliers in countries around the world. Last year the team took 64 businesses on trade missions to 10 countries, with a further 40 businesses being linked up with partners around the world through inward ‘meet the buyer’ events and virtual meetings. 

Top 10 largest UK manufacturing sectors, 2018