This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 8/1/2019
Overview
 

The UK is a very important market for U.S. agricultural products.  In calendar year 2018, U.S. exports of agricultural, fish and forestry products to the UK were $2.9 billion. There are strong historic and cultural ties between the UK and the U.S., which are obvious in consumer trends in retail and foodservice markets. The UK presents market opportunities for many U.S. consumer-oriented products, including specialty food products, “healthy” food items, wine, sauces, fruit, nuts and juices. “Health” and convenience foods are the main driving forces in the UK value-added food and beverage market. Consumers in this relatively wealthy country are looking for variety in high quality food products especially those perceived to have health benefits and a strong provenance.

Consumer-oriented food and beverage products remain the most important sector, amounting to 35% ($1.03 billion) of total U.S. exports of agricultural, fish and forestry products to the UK in calendar year 2018.  Ranked as the eleventh largest destination for U.S. consumer-orientated food products, the UK continues to differentiate itself from its European neighbors in this product area.  Within this category it is worth noting that U.S. exports of fresh vegetables, chocolate and cocoa, and condiments and sauces all set records to the UK in 2018. U.S. wines, particularly from California, have established a high profile in the UK and remain strong with U.S. exports valued at $261 million in calendar year 2018.  There has also been notable success for branded snack foods and grocery goods, largely by generating niche markets and specialist distribution based upon their quality attributes.

The UK is also a key market for U.S. fish and seafood products ($74 million in calendar year 2018). Once a predominantly canned salmon market, U.S. seafood exports to the UK for calendar year 2018 reveal that the value of canned products was $39 million of the total. Fresh and frozen salmon, and increasingly pollack, enter the UK processing sector to compensate for the decline in harvested volumes of whitefish as a result of low levels of fish stocks in European fishing grounds.

U.S. forestry product exports to the UK ($847 million total in 2018) are driven by the use of wood pellets as biomass for electricity sector.  Other forestry product exports to the UK remain under pressure due to strong competition from low cost third country suppliers, as well as EU competitors such as Scandinavia.  Technical barriers with regard to differing standards and certification requirements also make trade difficult.



Leading Sub-Sectors
Best Products/Prospects

  • Natural, wholesome & healthy foods (including gluten-free, meat-free, functional foods)

  • Wine

  • Seafood

  • Fresh fruit & vegetables

  • Dried fruit & nuts

  • Specialty sauces & condiments

  • Snack foods

  • Confectionery

  • Wood pellets

  • Beer (including micro-breweries)

  • Soft Drinks  

Top 10 U.S. Agricultural Product Exports to the UK by Value & Calendar Year
($ Millions)

 

2014

2015

2016

2017

2018

Other Value-Added Wood (including wood for fuel, finished wood products, builders joinery etc)

638

840

753

730

847

Wine & Beer

237

306

363

263

261

Tree Nuts (including coconuts, brazil nuts, cashew nuts, hazelnuts, almonds, chestnuts, pistachios, etc)

171

207

200

212

197

Distilled Spirits

179

231

122

187

191

Prepared Food

171

158

191

157

168

Fresh Fruit & Vegetables

97

98

124

117

115

Soybeans

108

77

90

0

109

Live Animals

91

73

82

87

90

Fish Products

142

130

103

82

74

Processed Fruit & Vegetables

112

110

86

78

59


Opportunities

Opportunities

Constraints

The scale of the U.S. food industry may offer price competitiveness on large volume orders.

Competition from EU member states (import duty payable on U.S. products).

The UK climate limits growing seasons and types of products grown.

Poultry and red meat imports are highly regulated by the EU; as are dairy product imports from the U.S.

The diversity of the U.S. population creates innovative food products and concepts which are often mirrored in the UK.

Must meet strict UK/EU/retailer rules on food safety, traceability, environmental issues and plant inspection.

The U.S. has a good brand image in UK. The U.S. is a popular destination for the UK tourist and familiarity with U.S. products is widespread.

Labels, including nutritional panels, need to be changed.  Pack sizes and palletization may also need changing.

A common language means that the UK is a natural gateway into Europe.

Need to develop relationship with UK trade contacts and invest in marketing product.

The UK has a core group of experienced importers with a history of sourcing from the U.S.

Biotech (GMO) ingredients are not widely available/understood by the UK consumer; supply chain traceability required.

Strong interest in innovative products. Currently there is high interest in natural, “wholesome” and “health” food categories.

Taste buds differ, e.g. in the UK, popcorn is sweet, relishes are like jam, and spicy doesn’t mean high chili content.



Web Resources

The U.S. Department of Agriculture (USDA) is represented in the UK by the Foreign Agricultural Service (FAS) in the U.S. Embassy in London.  FAS works to improve foreign market access for U.S. agricultural, fish and forestry products and operates programs designed to build new markets and improve the competitive position of U.S. agriculture in the global marketplace.
The primary role of FAS/London is to advise U.S. exporters and to increase U.S. market presence by focusing resources on viable product categories sought after by UK buyers.  The FAS office also works on detection and elimination of trade barriers; analysis of and reporting on the UK agricultural situation, outlook and market opportunities for U.S. agricultural, fish and forest products; and representation of U.S. agricultural policies to UK trade and public.  FAS/London works in conjunction with marketing partners such as U.S. trade associations, State departments of agriculture, small businesses and cooperatives to implement a unified export strategy.
FAS provide a range of services (free-of-charge) to assist U.S. exporters of agricultural products in achieving export success.  More detailed information can be obtained by contacting:

FAS/London
Tel: +44 20 7891 3313
Email: aglondon@fas.usda.gov
Information on FAS global services can be found at FAS Online


 
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.


More Information

United Kingdom Food and Beverage Trade Development and Promotion