Chapter 14: The food chain
Published 10 July 2025
© Crown copyright 2025
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Summary
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In 2023, the agri-food sector (excluding fishing) in the United Kingdom accounted for a total estimated Gross Value Added (GVA) of £153.2bn or 6.2% of national GVA, an increase of 4.8% since 2022. The GVA from agriculture decreased by 4.5% between 2022 and 2023 but all other sectors saw an increase.
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Employment in the agri-food sector in Great Britain fell by 0.9% to 4.2 million over the 12-month period to the fourth quarter of 2024. The largest percent change was seen in retailing which fell by 2.4% (27,000 employees).
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Total factor productivity of the food chain showed no significant change compared to 2022, while the productivity of the wider economy also showed no significant change. In the 10 years prior to 2023, the average annual growth rate of the food chain was 0.6%, while the wider economy’s average annual growth rate was 0.4%. In 2023, total factor productivity of food wholesaling increased by 0.4%, but manufacturing, retail and non-residential catering (NRC) decreased by 0.2%, 0.2% and 1.1% respectively.
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Consumer expenditure on food and alcoholic drinks (at constant prices) decreased by 1.2% from £276.5bn in 2023 to £273.1bn in 2024 but was 13% higher than in 2014. Expenditure on food and drink eaten out decreased by 2.1% from £126.7bn in 2023 to £124.0bn in 2024 and expenditure on household food decreased by 0.7% from £125.4bn to £124.5bn, whilst expenditure on alcoholic drinks (off-licence only) increased by 1.0% from £24.4bn to £24.7bn.
Contribution of the agri-food sector to the national economy
Figure 14.1 Gross Value Added of the agri-food sector, 2023 (£ billion)
Enquiries: David Lee on +44 (0)20 802 63006
Email: david.lee@defra.gov.uk
| Sector | Gross Value Added | Share of total |
|---|---|---|
| Agriculture (excluding fishing) | £13.7bn | 8.9% |
| Food and Drink Manufacturing | £37.1bn | 24% |
| Food and Drink Wholesaling | £16.9bn | 11% |
| Food and Drink Retailing | £40.2bn | 26% |
| Food and Drink Non-Residential Catering | £45.2bn | 30% |
Source: Annual Business Survey (ONS), Aggregate Agricultural Accounts (Defra).
Download the full Food chain dataset
In 2023 the agri-food sector (excluding fishing) contributed £153.2bn to the UK’s economy, 6.2% of the national GVA. Within this, catering accounted for the largest proportion at 30% followed by retailing at 26% and manufacturing at 24%. The agriculture sector made the smallest contribution at 8.9%.
Table 14.1a to 14.1e - Agri-food sector contribution to the national economy, 2022 to 2024 (£ million unless otherwise specified)
Enquiries: David Lee on +44 (0)20 802 63006
Email: david.lee@defra.gov.uk
Table 14.1a
| Sector | 2022 | 2023 | 2024 |
|---|---|---|---|
| Agri-food sector’s contribution to the UK’s total economy gross value added | 146,169 | 153,157 | [x] |
| Agriculture (excluding fishing) | 14,331 | 13,681 | [x] |
| Food and drink manufacturing | 34,962 | 37,132 | [x] |
| Food and drink wholesaling | 15,852 | 16,911 | [x] |
| Food and drink retailing | 37,753 | 40,249 | [x] |
| Food and drink non-residential catering | 43,272 | 45,183 | [x] |
| % of national gross value added | 6.5% | 6.2% | [x] |
Table 14.1b
| Sector | 2022 | 2023 | 2024 |
|---|---|---|---|
| Workforce in the agri-food sector in Great Britain (thousand persons) | 4,216 | 4,191 | 4,153 |
| Agriculture (excluding fishing) | 418 | 409 | 402 |
| Food and drink manufacturing | 437 | 442 | 447 |
| Food and drink wholesaling | 222 | 209 | 207 |
| Food and drink retailing | 1,144 | 1,105 | 1,078 |
| Food and drink non-residential catering | 1,995 | 2,025 | 2,019 |
| % of total workforce in employment | 14% | 13% | 13% |
Table 14.1c
| Trade in food, feed and drink in real terms at 2024 prices | 2022 | 2023 | 2024 |
|---|---|---|---|
| Imports of food, feed and drink | 65,769 | 60,059 | 64,053 |
| % of total UK imports | 10% | 9.7% | 10% |
| Exports of food, feed and drink | 28,234 | 25,130 | 24,552 |
| % of total UK exports | 6.3% | 5.9% | 6.1% |
Table 14.1d
| UK Food Production to Supply Ratio (‘Self-Sufficiency’) | 2022 | 2023 | 2024 |
|---|---|---|---|
| % of all food | 60% | 62% | 65% |
| % of indigenous type food | 73% | 75% | 77% |
Table 14.1e
| UK Household final consumption expenditure on food and alcoholic drinks | 2022 | 2023 | 2024 |
|---|---|---|---|
| At current prices | 278,772 | 304,524 | 314,090 |
| Household food and non-alcoholic beverages | 127,216 | 143,241 | 146,028 |
| Food and drink eaten out | 127,176 | 136,539 | 142,173 |
| Alcoholic drinks (off-licence only) | 24,380 | 24,744 | 25,889 |
| At constant 2022 prices | 278,772 | 276,483 | 273,145 |
| Household food and non-alcoholic beverages | 127,216 | 125,386 | 124,487 |
| Food and drink eaten out | 127,176 | 126,671 | 123,985 |
| Alcoholic drinks (off-licence only) | 24,380 | 24,426 | 24,673 |
| % of total household final consumption expenditure (current prices) | 18% | 19% | 18% |
| Household food and non-alcoholic beverages | 8.3% | 8.7% | 8.6% |
| Food and drink eaten out | 8.3% | 8.3% | 8.3% |
| Alcoholic drinks (off-licence only) | 1.6% | 1.5% | 1.5% |
Notes for tables 14.1a to 14.1e:
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2024 trade figures are provisional and subject to revision
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[x] means ‘not available’
Sources: Annual Business Survey (ONS), Aggregate Agricultural Accounts (Defra), Labour Force Survey GB (ONS), Overseas Trade Statistics (HMRC), Consumer Price Indices (ONS).
Download the full Food chain dataset
Agri-food sector employees and self-employed farmers in Great Britain
Figure 14.2 Agri-food sector employees and self-employed farmers, Great Britain, 2024 (millions)
Enquiries: David Lee on +44 (0)20 802 63006
Email: david.lee@defra.gov.uk
| Sector | Number of employees (millions) | Share of agri-food total |
|---|---|---|
| Agriculture (excluding fishing) | 0.402 | 10% |
| Food and Drink Manufacturing | 0.447 | 11% |
| Food and Drink Wholesaling | 0.207 | 5.0% |
| Food and Drink Retailing | 1.078 | 26% |
| Food and Drink Non-Residential Catering | 2.019 | 49% |
Sources: Labour Force Survey GB (ONS), June Survey of Agriculture (Defra), June Scottish Agricultural Census (Scottish Government), June Survey of Agriculture and Horticulture (Welsh Government).
Download the full Food chain dataset
In 2024, the agri-food sector employed 4.2 million people, or 13% of all employees in Great Britain. This proportion has been broadly the same since 2001. Agriculture accounts for less than half a million employees or 10% of the agri-food sector.
In the twelve months to December 2024, employment in the agri-food sector decreased by 0.9% or 37,000 jobs. Employment increased in 2024 in manufacturing (1.0%), but fell in agriculture (-1.9%), wholesaling (-0.7%), retailing (-2.4%) and non-residential catering (-0.3%).
Employment across the whole GB economy rose by 0.7% over the same period.
Employment in the agri-food sector has risen 24% since 2014. Changes in each of the sectors since 2014 show that employment in agriculture, wholesale and retail fell by 6.1%, 1.3% and 8.4% respectively, while manufacturing and non-residential catering increased by 17% and 28% respectively.
Total Factor Productivity
In 2023 the productivity of the food chain showed no significant change compared to 2022, while the productivity of the wider economy also showed no significant change. In the 10 years prior to 2023, the average annual growth rate of the food chain was 0.6%, while the wider economy’s average annual growth rate was 0.4%.
In 2023 productivity increased in only one of the four sectors (wholesale).
In 2023, total factor productivity in food and drink manufacturing decreased by 0.2%, while in the last 10 years average annual productivity increased by 0.4%.
Total factor productivity of food wholesaling increased by 0.4% in 2023, while in the last 10 years has shown an average annual increase of 0.9%.
Productivity of the food retail sector decreased by 0.2% in 2023. In the last 10 years, productivity has shown an average annual increase of 0.6%.
In 2023, non-residential catering (NRC) showed a decrease in productivity of 1.1% but in the last 10 years average annual productivity increased by 0.5%.
For more information on productivity please see the Total Factor Productivity of the United Kingdom Food Chain publication.
Food production to supply ratio
Figure 14.3 Food production to supply ratio, United Kingdom, 1956-2024
Enquiries: David Lee on +44 (0)20 802 63006
Email: david.lee@defra.gov.uk
Source: Defra analysis of HMRC Overseas Trade Statistics
Text description of Figure 14.3: Figure 14.3 is a line chart that shows how the food production to supply ratio for all food and indigenous type food for the UK has changed from 1956 to 2024.
Download the full Food chain dataset
In 2024, the value of food, feed and drink exports was £24.6bn, a decrease of 2.3% from 2023 after adjusting for trade price inflation. In 2024 the value of food, feed and drink imports increased by 6.6% from 2023 to £64.1bn, resulting in a trade gap of £39.5bn, an increase of 13.1% from £34.9bn in 2023 after adjusting for trade price inflation. See Chapter 13 for more detail on overseas trade.
Net trade on its own does not take domestic production into account. The food production to supply ratio (commonly referred to as the “self-sufficiency ratio”), is calculated as the farmgate value of raw food production divided by the value of raw food for human consumption. The ratio has stabilised in the most recent decade at around 60% after falling from over 80% in the 1980s, but is higher than it has been historically. The ratio for indigenous only food types follows the same trend but is consistently several percentage points higher than the ratio for all food types.
The food production to supply ratio is estimated to be 65% for all food in 2024 and 77% of indigenous type food. In 2023, this was 62% and 75% respectively. Table 14.2 contains production to supply ratios for selected crops and other primary agricultural products. For these individual products, the production to supply ratio is calculated using volumes rather than value.
Table 14.2 Food Production to Supply Ratio, 2022 to 2024
Enquiries: David Lee on +44 (0)20 802 63006
Email: david.lee@defra.gov.uk
| 2022 | 2023 | 2024 | |
|---|---|---|---|
| Cereals | 92% | 93% | 79% |
| Wheat | 95% | 96% | 79% |
| Barley | 112% | 113% | 106% |
| Oats | 121% | 120% | 104% |
| Other crops | |||
| Oilseed rape | 64% | 63% | 53% |
| Sugar beet | 55% | 54% | 65% |
| Fresh vegetables | 55% | 54% | 53% |
| Potatoes | 69% | 67% | 68% |
| Cabbages | 86% | 81% | 85% |
| Cauliflowers and broccoli | 54% | 50% | 55% |
| Carrots, turnips and swede | 98% | 96% | 95% |
| Mushrooms | 49% | 47% | 45% |
| Lettuce | 45% | 47% | 47% |
| Tomatoes | 16% | 16% | 16% |
| Fresh fruit | 17% | 16% | 15% |
| Apples | 41% | 38% | 38% |
| Pears | 14% | 13% | 17% |
| Plums | 14% | 13% | 12% |
| Strawberries | 68% | 66% | 61% |
| Raspberries | 39% | 38% | 33% |
| Meat and dairy | |||
| Beef and veal | 87% | 85% | 85% |
| Pig meat | 70% | 65% | 65% |
| Mutton and lamb | 107% | 113% | 99% |
| Poultry meat | 84% | 82% | 83% |
| Milk | 105% | 105% | 105% |
| Eggs | 90% | 88% | 89% |
Notes:
- 2024 figures are provisional.
- Average ratios for categories of cereals, other crops, fresh vegetables and fresh fruit may include more items than the selected items listed in the table.
Source: Chapter 7: Crops and Chapter 8: Livestock, of this publication are used for category averages (e.g. fresh vegetables) and potatoes and all meat and dairy products. Defra’s Horticulture Statistics for all other individual products.
Download the full Food chain dataset
Distinction between competitiveness and food security
The food production to supply ratio provides a very broad indicator of the ability of United Kingdom agriculture to meet consumer demand - also described as competitiveness. The ratio is not an appropriate measure of “food security” since it fails to account for many dimensions of this complex issue.
Diversity of supply enhances security because a high food production to supply ratio fails to insulate a country against many possible disruptions to its supply chain. The United Kingdom sources foods from diverse stable countries, mainly European countries, and imports can make up for domestic supply shortages (see Figure 14.4).
Defra’s triennial ‘UK Food Security Report’ which was last updated in 2024, provides a comprehensive analysis that encompasses the many dimensions of food security; availability, access, utilisation of food, stability, sustainability and agency.
There is a continuously evolving set of challenges facing the food supply chain, for example geopolitical tensions disrupting global markets, the increasing cybersecurity risks as reliance on digital infrastructure grows and climate change.
In recent years, the food security landscape has changed significantly. The UK’s departure from the European Union brought changes in the areas of trade, farming, and access to fisheries, resulting in both challenges and opportunities in food security. The COVID-19 pandemic also stress-tested the supply chain, highlighting both the vulnerabilities in this complex system and the resilience and flexibility of the UK’s food supply.
Origins of food consumed in the United Kingdom
Figure 14.4 includes the proportion of United Kingdom food consumption that is produced in the United Kingdom. This should not be confused with the food production to supply ratio given in Figure 14.3. Figure 14.4 looks purely at the breakdown of food that the United Kingdom actually consumes.
The food production to supply ratio (see Figure 14.3) considers all United Kingdom food production, including food that the United Kingdom exports instead of consuming. A further, much smaller difference is that the United Kingdom food production used in the food production to supply ratio calculations has been adjusted to take account of the balance of trade in important inputs into agriculture.
Figure 14.4 Origins of food consumed in the United Kingdom, 2024 (percentage)
Enquiries: David Lee on +44 (0)20 802 63006
Email: david.lee@defra.gov.uk
| Origin of destination | 2024 |
|---|---|
| UK exports | -9% |
| UK | 57% |
| EU | 25% |
| Rest of Europe | 3% |
| Africa | 5% |
| Asia | 4% |
| Australasia | 1% |
| North America | 2% |
| South America | 3% |
Notes:
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Based on the farm-gate value of raw food.
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Consumption of UK origin consists of UK domestic production minus UK exports.
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UK exports are given as a percentage of total UK consumption.
Source: Defra analysis of HMRC Overseas Trade Statistics
Download the full Food chain dataset
Supply includes domestic production plus imports and excludes exports of home production. In 2024, 57% of domestic consumption came from UK production (based on unprocessed value at farmgate), 25% from the EU and the remaining 18% from the rest of the world. There were 33 countries that accounted for 90% of imported supply, and 19 for 80%. Some countries or regions are uniquely important to supply of particular products such as bananas from the Caribbean and Central America, reducing the security of this supply.
Consumers’ expenditure
Figure 14.5 UK Consumers’ expenditure on food, drink and eating out, 2004-2024 (£ billion at constant prices)
Enquiries: David Lee on +44 (0)20 802 63006
Email: david.lee@defra.gov.uk
Notes:
- Catering includes food and non-alcoholic beverages and alcoholic beverages from canteens, restaurants, cafés, pubs etc.
Source: Consumer trends, ONS
Text description of Figure 14.5: Figure 14.5 is a line chart that shows the amount of consumer spending in the UK on household food and non-alcoholic drink, alcoholic drink (off-licence only) and for catering from 2004 to 2024.
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After taking into account the effects of price rises (constant prices), consumers’ expenditure on food and alcoholic drinks decreased by 1.2% from £276.5bn in 2023 to £273.1bn in 2024 but was 13% higher than in 2014.
Expenditure on food and drink eaten out decreased by 2.1% from £126.7bn in 2023 to £124.0bn in 2024 and expenditure on household food decreased by 0.7% from £125.4bn to £124.5bn, whilst expenditure on alcoholic drinks (off-licence only) increased by 1.0% from £24.4bn to £24.7bn.
Changes in consumers’ price indices
Figure 14.6 UK food and non-alcoholic beverage prices measured by Consumer Prices Index including owner occupiers’ housing costs (CPIH), Jan 2020 - Dec 2024
Enquiries: David Lee on +44 (0)20 802 63006
Email: david.lee@defra.gov.uk
Source: Consumer Price Index (ONS)
Text description of Figure 14.6: Figure 14.6 is a line chart that shows the changes in the UK food and non-alcoholic beverage prices measured by CPIH and overall CPIH inflation from January 2020 to December 2024.
Download the full Food chain dataset
Figure 14.6 shows that food price CPIH inflation is now less than overall inflation, having previously overtaken overall inflation in April 2022, becoming less in April 2024. Food and non-alcoholic beverages CPIH inflation peaked in March 2023 at 19.2% while overall CPIH inflation peaked in October 2022 at 9.6%.
Modelling commissioned by Defra shows that the five main drivers of food prices are farmgate prices, import prices, exchange rates, labour costs in food manufacturing and non-labour costs in food manufacturing.
Food price inflation rose sharply during the aforementioned time period due to a combination of those factors - some of which were also exacerbated further by the conflict in Ukraine.
The Consumer Prices Index including owner occupiers’ housing costs (CPIH) is the most comprehensive measure of inflation. It extends the Consumer Prices Index (CPI) to include a measure of the costs associated with owning, maintaining and living in one’s own home, known as owner occupiers’ housing costs (OOH), along with Council Tax. Both are significant expenses for many households that are excluded from the CPI.
Glossary
Standard Industry Classification codes (SIC codes)
These are numerical codes that categorise the industries that companies belong to based on their business activities.
Economic definition of food and agri-food sector
The UK agri-food sector is defined as the food sector plus agriculture.
The UK food sector is defined as food manufacturing, food wholesaling, food retailing and non-residential catering. In terms of the standard industrial classification (SIC 2007) it is defined as:
| Category | SIC codes |
|---|---|
| Food Manufacturing: | 10 + 11 |
| Food Wholesaling: | 46.3 (excluding 46.35) + 46.17 |
| Food Retailing: | 47.2 (excluding 47.26) + 47.11 + 47.81 |
| Non-residential Catering: | 56 |
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In SIC2007 the food manufacturing sector comprises of nine main categories including processing and preserving meat, dairy, fruit and vegetables, oils, bread, biscuits and cakes, and confectionery. Animal feed manufacturing is included, covering both farm animal feed and pet food. The drink manufacturing sector includes alcoholic beverages and soft drinks and mineral waters.
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Food and drink wholesaling consists of the buying, storage and reselling of food either manufactured or freshly produced. Wholesale of tobacco products (46.35) is not included, but SIC code 46.17 "Agents involved in the sale of food, beverages and tobacco" is included. This group includes wholesalers that trade on behalf of others on a fee or contract basis and also 46.3 which is "Wholesale of food, beverages and tobacco".
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Food and drink retailing is defined as the sale of food within both non-specialised stores (e.g. supermarkets), 47.11, and specialised stores such as butchers and bakers, 47.11 and 47.81. The sale of tobacco products is subtracted from the specialised stores using 47.26 and then subtracted from the non-specialised stores later on using a ratio for food and drink.
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Non-residential catering (NRC) consists of restaurants and bars involved in preparation and serving of food, alongside canteens and catering services. Hotels are not included.
Gross Value Added (GVA)
GVA is the difference between output and intermediate consumption for any given sector / industry. This is the difference between the value of goods and services produced and the cost of raw materials and other inputs which are used up in production.
Total Factor Productivity (TFP)
Productivity measures the efficiency at which inputs are converted into outputs. Total Factor Productivity provides a comprehensive picture of growth.