UK food and drink exports hit multi-year low amid rising trade deficit

The United Kingdom’s food and drink sector is facing significant trade challenges. According to the Food and Drink Federation (FDF), food export volumes dropped by 11.7% in the first half of 2026, reaching their third-lowest level this millennium. This decline, coupled with high import volumes, has pushed the food and drink trade deficit to £21.1 billion, the highest since 2000.

Specific market factors include post-Brexit regulatory complexities affecting exports to the EU, such as Ireland and France, and a 23.4% plunge in exports to the UAE due to Middle East conflicts. Additionally, a 10% US tariff led to a 16.5% drop in exports to the United States. The FDF is calling for government intervention to protect domestic manufacturing and streamline regulations.

In the alcoholic beverage sector, trends are mixed. UK whisky exports rose by 2.2% in value to £2.5 billion, though the average value per unit fell by approximately 3.4%. Conversely, gin exports grew in both value (2.8%) and volume (1.3%). Meanwhile, wine imports to the UK decreased by 2.7% to £1.6 billion. Notably, whisky exports to the Philippines saw a sharp decline, falling 57.2% in value and 70.4% in volume during the first half of 2026.

On a domestic level, the British wine industry is seeing increased demand for technical and analytical support as production matures and diversifies into various styles and sustainable practices.