Future Factory Report

THE CRITICAL ROLE OF FOOD AND DRINK MANUFACTURING Introduction

Drives regional economic growth and job creation Each direct job in the sector supports more than three jobs elsewhere, making it a multiplier of local prosperity. It creates well-paid, reliable jobs and long-term careers in communities often underserved by other industries. Jobs range from entry level work on the factory floor right through to highly skilled roles in engineering, food science and digital technology. By purchasing domestic agricultural output, the sector also supports the UK’s farming community, creating a virtuous cycle of local sourcing and production. At a time when the government’s growth and opportunity missions seek to bridge regional inequalities, food and drink manufacturing offers a model of local economic growth. Feeds the UK every day and in times of crisis By sourcing locally and internationally, the food and drink sector provides variety but also stability, cushioning against potential shocks. During the COVID-19 pandemic, the war in Ukraine and post-Brexit trade shifts, for instance, manufacturers demonstrated their resilience, swiftly adapting to supply chain disruptions and market volatility, keeping shelves stocked and the public reassured. Fuels export growth The UK’s food and drink products are prized worldwide with exports reaching a record £25 billion in 2022. Rising demand leads to increased production and more jobs, further solidifying the industry’s role as a driver of economic growth.

 £38 billion gross value added (GVA) to the UK economy  17% of UK manufacturing GVA – the biggest manufacturing sector  12,515 businesses  474,000 people employed  Truly national, in all parts of the UK  £24 billion of food and drink exports to over 200 countries  70% of UK land usage is in agriculture, with food and drink manufacturing the largest customers  Around a quarter of UK's domestic CO 2 emissions are from the food sector, with the ability to have a huge impact on Net Zero

Sources: FDF, Food Foundation, gov.uk

Food and drink is the largest manufacturing sector in the UK, accounting for almost 20% of total manufacturing and generating more than £142 billion in turnover. Nearly half a million people in over 12,500 businesses – ranging from heritage brands to innovative startups – are employed in the sector. For every £1 the sector generates in gross value added (GVA), an additional £2.48 circulates back into the economy through supply chain activity and employee spending. Food and drink manufacturing is an undeniably powerful engine for economic growth, and its impact cannot be understated.

4

Made with FlippingBook - Online catalogs