Institution and Barclays produce new food and drink industry report

A new report outlines the changes, challenges and issues faced by food and drink manufacturers.

Working with the Institution, Barclays have produced a report on the food and drink industry, the UK’s largest manufacturing sector.

Based on interviews with senior representatives from a range of manufacturing business, as well as a survey of those working in the food and drink sector, Food for thought: The changing landscape of the food and drink industry identifies some of the changes, challenges and issues faced by food and drink manufacturers.

The report’s research addresses four interrelated topics: the structure of the UK food and drink industry, competitiveness and exports technology and investment issues, and future prospects for growth.
 
The Institution’s Head of Commercial Development Alastair Barr said: “Our research found many manufacturers are under pressure from the major supermarkets; this is squeezing margins and in-turn is having an impact on investment and forcing producers to plan short term. 

“On the positive side, manufacturers are being creative with their marketing and finding new ways to present their products and identifying new markets”

The report’s key findings are as follows:

• Significant changes in the UK food and drink retail sector will impact on the products that manufacturers supply and the visibility of their own brands
• Niche products and premium brands offer all food and drink manufacturers opportunities to exploit new markets – a route to greater business agility
• Engineering and technology, in the form of automation and supply chain logistics, have significant potential to change the business equations for food and drink manufacturers
• The impact of technology will be significantly reduced if the industry continues to be dominated by short-term considerations
• The sector is tough and resilient; qualities that give the food and drink industry confidence to invest for the future
• The food and drink supply chain model could benefit from further collaboration and partnership, enabling the UK industry to increase competitiveness and opportunities to export

Download the free Food for thought: The changing landscape of the food and drink industry report.