Key insights from our UK Food & Drink Industry Review
Johnston Carmichael’s Food & Drink Industry Survey and Report is our annual analysis of one of the UK’s most important and globally respected sectors. The survey is open to businesses of all sizes across the UK, allowing us to gather a clear picture of the challenges and opportunities facing producers, manufacturers and brand owners.
In our most recent survey, respondents ranged from start-ups to £100m+ turnover businesses, and includes a broad manufacturing base, with 58% identifying as food & drink producers.
Looking ahead, the data shows ongoing pressure from costs, labour shortages and changing consumer behaviour, but also a sector driven by resilience, heritage and innovation.
Who is it for?
This report is designed for founders, owners and senior leaders seeking a realistic view of the pressures, trends and opportunities shaping the UK food and drink sector.
Key statistics
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Get a peek inside the report
Here’s a quick look at some of the insights you’ll find in this year’s survey.
The state of the UK Food & Drink industry
Our most recent report shows a sector navigating rising costs, labour shortages and shifting consumer expectations. Yet the message is clear: UK food and drink remains remarkably resilient, built on deep expertise and a determination to protect heritage, quality and world-class products.
In our survey, we aim to ask the right questions. The topics we cover need to be current, as well as being relevant to all participants from across the whole sector. As a firm, we learn a lot from the findings, and it helps us understand what’s at the forefront of everyone’s mind, over and above what we learn from our own clients. We develop our service offering and tailor our communications throughout the year, supported by the results of the report. We also offer our voice and influence where we can so that the key challenges affecting the sector are heard.
There is no question that the food and drink sector in the UK has its fair share of challenges. Resilience will be essential as we look ahead to 2026/27, with limited signs of immediate improvement in underlying conditions. Our message to businesses is simple - support is available.
Adam Hardie
Partner and Head of Food & Drink
Business confidence softening
Growth optimism sits at 56% but varies sharply by size. Larger businesses (£100m+ turnover) remain around 90% positive, while smaller and midsized businesses continue to face more acute cost and funding pressures.
Cost pressures and profitability
- 63% of businesses saw their cost base rise by up to 10%.
- Labour costs are the largest pressure (56%), followed by raw materials (24%).
Ongoing regulatory changes - including EPR - are adding compliance costs and requiring new processes, packaging redesigns and reporting frameworks.
Innovation & AI-led transformation
Innovation remains central, with 79% investing in new products or processes. Many innovations are market led, focused on efficiency, health and wellness or operational improvement.
AI usage is building momentum, with businesses exploring automation, forecasting and embedded third party tools to drive productivity.
Sustainability & ESG in food production
57% of respondents say ESG has had the greatest regulatory impact on their business this year. EPR continues to reshape packaging, reporting and supply chain requirements.
Find our previous reports, using the links below.
Food & Drink Report: Review of 2024
Food & Drink Report: Review of 2023
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Business Development Partner and Head of Food & Drink
Adam Hardie
Adam Hardie brings a particular expertise in the understanding of clients' issues, unlocking routes to market and the development of strategic plans.
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