The UK’s exports of branded food and non-alcoholic drinks grew by almost 1% last year to record a 15th consecutive year of growth, according to the Food and Drink Federation (FDF).
But overall exports fell by £0.6bn to £12.3bn as a result of a drop in oil prices and the strength of the pound against the depreciated euro, which has made British exports less competitive in key Eurozone markets, it said.
Chocolate, salmon and cheese were still the three most exported product categories, while exports of vegetables – both prepared and fresh – experienced the largest increase in overall growth, up £18m last year to reach £336.3m.
Markets outside of the European Union (EU) now account for more than 30% of the UK’s total branded food and non-alcoholic drinks exports, while the value of non-EU markets was up 6.4%. Double-digit growth was experienced across exports to Saudi Arabia, Japan and Australia.
Exports to China grew by 9% – the first time that the country has featured in the UK’s ten largest export markets – driven by growth of processed milk exports, which experienced growth of more than 200% – or £19.3m – in 2015.
Salmon retained its position as one of the UK’s biggest food exports.
Elsewhere, exports of UK breakfast cereals to the UAE grew by £8.9m (45%) and exports of crisps to France increased by £1.2m (23%).
But exports of branded food and soft drinks to the EU as a whole fell by 1.3%, the figures revealed. The decline is particularly pertinent as British voters are set to go to the polls this summer on whether to remain part of the EU in a nationwide referendum.
FDF director of competitiveness Angela Coleshill said: “Growing exports is a top priority for Britain’s makers, bakers and bottlers, who have set an ambition to increase branded exports by a third by 2020. For our industry to meet this stretching target, we need to make sure small- and medium-sized food companies in particular are helped to compete in the fiercely competitive global marketplace.”
‘Thailand the fastest growing market’
Thailand showed the biggest growth of all export markets, importing an extra £59.3m’s worth of British food and non-alcoholic drink – an increase of more than 120%.
Elsa Fairbanks, director of the Food and Drink Exporters Association (FDEA), continued: “FDEA works with many of the UK’s most active exporters of food and drink and we are delighted to report that our recent members’ survey revealed that behind the export statistics there are numerous examples of optimism and business growth around the world. Buyers continue to be attracted by the quality and innovation of British products. Growth is particularly coming from products where the UK excels – iconic British brands combined with our expertise in health, wellbeing and free-from.”
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