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The United Kingdom's agriculture, food, and beverages (AFB) market is a significant contributor to the country's economy. In 2021, the AFB sector generated £120 billion in revenue and employed over 3.9 million people. The UK is a net exporter of AFB products, with exports totaling £27.3 billion in 2021.
Growing consumer demand for healthy and sustainable food: Consumers are increasingly interested in food that is produced in a sustainable and ethical manner. This is driving demand for organic, locally sourced, and Fairtrade products.
Rise of online grocery shopping: Online grocery shopping is becoming increasingly popular in the UK, with sales expected to reach £25.4 billion in 2023. This is creating new opportunities for AFB businesses to reach consumers.
Increased focus on food waste reduction: Food waste is a major issue in the UK, with an estimated 9.5 million tons of food wasted each year. Businesses are under increasing pressure to reduce food waste, which is creating opportunities for new technologies and solutions.
The UK government plays a major role in the AFB market, with a spending of £2.4 billion on AFB procurement in 2021. To ensure a sustainable and locally sourced food system, they actively pursue various policy initiatives.
The main AFB products and services procured by the UK government include:
Food and catering services: This includes food for schools, hospitals, prisons, and other public sector institutions.
Fresh produce: This includes fruits, vegetables, and meat.
Processed foods: This includes bread, cereals, and dairy products.
Drinks: This includes water, tea, coffee, and alcoholic beverages.
The top authorities for UK AFB procurement include:
Department for Environment, Food and Rural Affairs (DEFRA): DEFRA is responsible for setting food and farming standards in the UK. It also oversees the government's procurement of AFB products.
Ministry of Health and Social Care: The Ministry of Health and Social Care is responsible for setting nutrition standards for public sector catering.
Crown Commercial Service (CCS): The CCS is a government agency that provides procurement services for the public sector. It has a number of frameworks in place for the procurement of AFB products.
The top winners of UK AFB procurement contracts include:
Compass Group: Compass Group is a British multinational contract foodservice company. It is one of the largest suppliers of food and catering services to the UK public sector.
Sodexo: Sodexo is a French multinational contract foodservice company. It is another major supplier of food and catering services to the UK public sector.
Aramark: Aramark is an American multinational foodservice company. It is a supplier of food and catering services to the UK public sector.
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