No country provides a perfect benchmark, with differences in consumer preferences, size of economies and the scale of imports and exports. However, they do provide an indication of the value that can be generated by more productive food and drink manufacturing sectors. Looking at macroeconomic differences, the Netherlands is the most productive, but highest salaries are in Switzerland. The US is the largest food importer and exporter by value. However, both the Netherlands and Belgium also have significant export levels relative to their economic size, which can be attributed to their strategic location, efficient logistics networks, and specialisation in the manufacturing of particular products. Consumer behaviour also differs significantly. North American households appear to be more price sensitive, while the Swiss and the Dutch have a strong preference for own-label products. If the UK was to move to achieve the average North America productivity, that would represent a 22% improvement or a 2% annual improvement above inflation over 10 years, generating a further £7 billion of value for the economy.
While if it was to reach the average productivity of the world leading Dutch and Belgian food and drink manufacturing sectors, that would bring a 44% improvement or 4% annual improvement above inflation over 10 years, representing £14 billion of extra value for the economy. Such growth would strengthen the UK as a world leader in food and drink manufacturing, enhance food security, provide the potential to increase exports and support the UK economy. 2. Comparison with other advanced manufacturing in the UK In interviews with manufacturers, innovation hubs and academics, transport and engineering manufacturing was often brought up as a key comparator. Transport and engineering is a wide category, consisting of multiple manufacturing sectors from automotive, other transport, computer, machinery and electrical equipment. Although not exactly like-for-like, there are similarities in workforce demands, supply chain dependencies, regulatory pressures and technological advancement.
Comparison of food and drink manufacturing industry characteristics across different nations 5
Country
Adjusted GVA per employee
Average annual salary per employee
Value of food imports (m)
Value of food exports (m)
Private label value share in consumer goods (%)
% of consumers who would switch to less expensive foods to save money
Netherlands
£102,720 £91,630 £89,201 £75,248 £69,731 £68,815 £67,308 £66,674 £62,704 £62,117 £58,096 £57,389 £53,376
£39,914 £35,916 £40,430 £50,057 £43,679 £22,261 £31,486 £51,004 £44,678 £28,490 £21,742 £12,376 £26,614
£80,943 £42,601 £81,558 £39,817 £8,334 £50,471 £60,578 £12,189 £13,699 £60,276 £43,915 £27,392 £94,842
£106,795 £47,487 £172,147 £60,541 £12,297 £51,933 £27,468 £8,447 £17,993 £69,256 £53,944 £41,392 £77,208
45.2% 39.8% 18.9% 18.5% 23.0% 30.2% 44.0% 52.3% 34.0% 34.4% 45.6% 27.2% 41.4%
43% 39% 66% 66% 27% 43% 34% 37% 37% 36% 38% 46%
Belgium
US
Canada Norway
Italy
UK
Switzerland
Denmark
France
Spain
Poland
Germany
5. Data sourced from: UK GDP (low-level aggregates), Office for National Statistics (2024), JOBS03: Employee jobs by industry, Office for National Statistics (2024), JOBS04: Self-employment jobs by industry, Office for National Statistics (2024), Enterprises by detailed NACE Rev.2 activity and special aggregates, Eurostat (2022), Value Added by Industry, U.S. Bureau of Economic Analysis (2024), Labour Force Statistics from the Current Population Survey, U.S. Bureau of Labour Statistics (2024), Labour productivity and related measures by business sector industry and by non- commercial activity consistent with the industry accounts, Statistics Canada (2023), Canada GDP deflator, Trading Economics (2022), Price Level Indices, OECD (2022), Annual Survey of Hours and Earnings, ONS (2022), Occupational Employment and Wage Statistics, Bureau of Labour Statistics (2022), World Development Indicators, World Bank (2022), Private Label Value Share of FMCG in Europe, Statista (2024), Private Label Share of Consumer Goods in the US, Statista (2024), Private Label Market in Canada, Statista (2022), The State of Grocery Retail, Europe, McKinsey and Company (2023), The State of Grocery Retail, North America, McKinsey and Company (2023)
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