The UK’s position of strength in the food industry
Reap the benefits of British food industry
The UK's position of strength in the food industry
The UK has been, still is and in the future will be an important and advantageous entry point for Danish food companies. In 2021 alone, the UK imported Danish goods worth DKK 42.1 billion. In the same period, food and agricultural products made up 23% of total Danish exports to the UK.
The British food market has many strengths, and the UK's position of strength in the food industry spans several areas. These areas may be relevant to keep in mind if your vision is to export food across the North Sea.
The UK is still dependent on imports
Although the UK withdrew from the EU and exports have become more complicated after Brexit, the British food industry will continue to be dependent on imports. The UK is still a large market with potential, due to market size, geographic location, cultural similarities and language skills, as well as similar processes.
The UK matches the Danish objectives within agriculture, along with other parallels. At the same time, British consumers expect higher ethics in food production in relation to organic products and animal welfare. Danish companies have a lot to offer in these two areas. This aligns with our Embassy’s major focus areas in 2024: sustainability and plant-based- and organic foods.
Self-sufficiency in the UK food system is approximately 50%, meaning that close to half of the British-consumed goods are imported. This ratio offers good chances for food exporters looking for a point of access.
Overall, food and the export of food are major industries in the UK. The numbers almost speak for themselves:
- In 2022, the total consumer spending on food, drink and catering was £254 billion. (approximately 2,200 billion DKK – or 2.2 trillion DKK)
- In 2021, the value of food and drink exports was £20.2 billion. (approximately 178 billion DKK).
Danish products are well-known to the British public
Denmark comes in fifth place when the British are asked to name countries that are leading food suppliers. Denmark is only preceded by France (38%), Germany (32%), the USA (29%) and Spain (27%). What this means is that knowledge of Denmark as a food- and agricultural nation is at 25% and is relatively well-known to the British.
In 2020, this awareness was somewhat lower – namely at just 7%. This trend shows a clear improvement regarding awareness of Denmark among UK decision-makers, which could be due to a stronger branding effort, but might also be a result of inflation and the supply chain turmoil during COVID-19.
The British want organic products and animal welfare on the menu
Britain has not previously been known for prioritising the organic products, and in many ways cannot live up to the Danish love for eco-labels. In the UK, organic food accounts for only 1-2% of total turnover. However, in the past decade organic food sales in the UK have quadrupled, and so the desire for organic food is increasing.
In recent years, a general trend in the UK is that consumers are starting to favour organic and plant-based diets. Here, retail and food service have also started to make an impact – both in relation to a greater selection and better visibility of organic products. This trend manifests in grocery stores’ organic markets, which increased to 1.97 billion pounds in 2021 from 1.92 billion pounds in 2020.
Just as in most places in the world, the UK also would prefer to have nationally produced food rather than imported, because this would mean that it holds the highest production standards in terms of everything from quality to animal welfare.
Denmark, however, has a solid reputation because we set high standards for animal welfare and emphasising organic products. It is in clear alignment with what the British want – that is, a greater focus on making the world a better place – while at the same time, 83% of decision-makers find that their customers are demanding healthier food products.
Those who recognise Danish companies as strong suppliers of technological solutions can complement their own companies with healthier food and support healthy food production and environmental concerns throughout the value chain.
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