© Crown copyright 2019
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: firstname.lastname@example.org.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/food-statistics-pocketbook/food-statistics-in-your-pocket-food-chain
1.1 : Gross Value Added of the UK agri-food sector, 2017
|Agriculture and Fishing||£11.2bn|
|Food and Drink Manufacturing||£31.1bn|
|Food and Drink Wholesaling||£12.6bn|
|Food and Drink Retailing||£30.3bn|
The agri-food sector contributed £121.6 billion or 6.7% to national Gross Value Added in 2017.
The GVA of the food sector (excluding agriculture and fishing) increased 6.4% in 2017, following a 1.7% increase in 2016. Wholesaling GVA increased by 2.1%, whilst manufacturing rose by 5.7% and catering rose by 11.5%. Retailing GVA fell by 4.4%.
Longer term, the food sector (excluding agriculture and fishing) increased by 89% between 2000 and 2017 while the whole economy increased by 86%. The food sector has less scope for growth as there is a limit to consumer intake capacity and therefore it relies largely on quality improvements.
1.2 : Trends in the total factor productivity of the UK food sector
Total factor productivity of the UK food chain beyond the farmgate has risen by 1.5% between 2016 and 2017. Productivity in the wider economy fell by 0.2%.
The TFP of the UK food sector is an indicator of the efficiency and competitiveness of the food industry within the UK. An increase in TFP indicates the industry is improving its competitiveness. In 2017, productivity in catering saw the highest increase of 2.3%, while food manufacturing rose by just 0.3%.
The calculation is based on reliable data on business sales and costs, employment by industry and on price indices all collected by the Office for National Statistics.
1.3 : Agri-food sector employees (GB), Q4 2018
|Q4 2018||million employees|
|Agriculture and Fishing||0.44|
|Food and Drink Manufacturing||0.43|
|Food and Drink Wholesaling||0.26|
|Food and Drink Retailing||1.17|
|Total food sector||3.64|
|Total agri-food sector||4.07|
The food sector1 in GB employed 3.6 million people in Q4 2018 (4.1 million if agriculture and fishing are included along with self-employed farmers), a 2.2% increase on a year earlier. It covered 12% of GB employment in Q4 2018 (14% if agriculture and fishing are included along with self-employed farmers).
Non-residential catering accounted for 49% of the post-farm gate food chain in Q4 2018. Employment in this sector increased 2.2% on a year earlier, equating to around 39,000 jobs. Retailing accounted for around one third of food chain jobs (excluding agriculture) in Q4 2018 and increased by 1.3% from a year earlier, or around 15,000 jobs.
In Q4 2018, just under one half of food sector jobs were part time. Women accounted for 55% of employees in food retailing and 53% in non-residential catering.
1 ‘Food’ includes non-alcoholic drinks. ‘Drink’ is alcoholic drinks
1.4 : UK food and drink manufacturing by product type
|Product||Number of SMEs in 2018|
|Meat and meat products||800|
|Fish and crustaceans||255|
|Fruit and vegetables||375|
|Oils and fats||35|
|Grain and starch products||100|
|Other food products||1,265|
|Prepared animal feeds||345|
|Product||GVA of sector in 2017 £ billion|
|Meat and meat products||3.7|
|Fish and crustaceans||0.6|
|Fruit and vegetables||2.1|
|Oils and fats||0.2|
|Grain and starch products||1.6|
|Other food products||6.0|
|Prepared animal feeds||1.7|
There were approximately 7,030 micro, small and medium sized enterprises (SMEs) in the food and drink sector with turnover of around £25 billion and 110,000 employees in 2018. In the food sector (excluding beverages) SMEs accounted for 96% of businesses, 25% of employment and 25% of turnover. Around a third of the SMEs are manufacturers of bakery products.
In terms of Gross Value Added2 (GVA), the ‘other food products’ category (SIC code 0108) was the largest manufacturing category with a value of £6.0 billion in 2017; contributing 19% to the total food and drink manufacturing GVA. This includes items such as prepared meals, confectionery, condiments and seasonings. Bakery and farinaceous products (SIC code 0107) had a GVA of £3.9 billion in 2017 contributing 12% to the total food and drink manufacturing GVA.
2 For disclosure reasons some small contributions (less than 4% overall) to food and drink manufacturing GVA have been treated as zeros.
1.5 : UK grocery market shares 2016
|Retailer||% of market share|
|Marks and Spencer||4|
The combined market share of food and non-alcoholic drinks of the largest four food and drink retailers was 50% in 2016, down from 55% in 2015. Tesco commanded the largest market share at 19%, the same level as 2015. The three largest discounters (Aldi, Iceland and Lidl) had a combined market share of 14%, up from 13% in 2015. Internet food shopping, which includes the largest supermarkets, increased to 8% of sales of food and non-alcoholic drinks, up from 6.1% in 2015.
Data comes from the Living Costs and Food Survey which is fully representative of UK household food shopping.
Alternative market share estimates from the Kantar Worldpanel 3 are more up to date although not restricted to foods and not as representative.
3 Kantar Worldpanel is a market research company, providing up to date statistics on sales by the grocery sector. Market shares also include sales of non-food.
1.6 : UK Consumer expenditure on food, drink and catering
Total consumer expenditure on food, drink4 and catering has continued to rise, by 2.9% in 2018 to £226 billion. Expenditure on food (including non-alcoholic drinks) increased by 3.4%, alcoholic drinks by 3.3% and catering by 1.7%.
Spend on food shopping has increased 34% since 2009. In 2018 it accounted for 48% of spend in the sector. Spend on catering accounted for 27% of sector spend in 2018 and has increased by 46% since 2009.
Spend on all alcoholic drinks accounted for 25% of sector spend in 2018. It has increased by 50% since 2009. Spend reduced between 2008 and 2009, but has increased yearly thereafter.
Source: Consumer Trends, (ONS).
4 Food’ includes non-alcoholic drinks. ‘Drink’ is alcoholic drinks
Enquiries to: email@example.com
Lead statistician: David Lee
Tel: 0208 026 3006
You can also contact us via Twitter: @DefraStats
Food Statistics team
Department for Environment, Food and Rural Affairs
Foss House, Kings Pool
1-2 Peasholme Green
York YO1 7PX