All in good taste: focus on food and drink
Dave Atkinson, UK Head of Manufacturing SME & Mid Corporates discusses the innovations and opportunities in the food and drink industry.
Read time: 3 mins Added: 12/08/25
From Tunnock’s to artisan start-ups: a nation of innovators
The UK’s food and drink manufacturers are often the unsung heroes of the economy. By some distance, food and drink is Britain’s biggest manufacturing sector; bigger than automotive and aerospace put together. Indeed, food and drink manufacturers account for almost a quarter of all UK manufacturing turnover, contributing £37 billion to the UK economy and employing more than 486,500 people1.
In the UK, we’re home to more than 12,000 food and drink manufacturers, from household names like Tunnock's and McVitie's to countless micro businesses producing artisan specialities. And the number of food and drink manufacturers grows on a daily basis, inspired by new food trends, emerging technologies, homegrown produce, global cuisines and more.
Dave Atkinson UK Head of Manufacturing SME & Mid CorporatesThey are at the forefront of innovation, launching thousands of new products every year. And they remain an exporting powerhouse, despite the complexities that producers face when selling their products overseas.
An opportunity to invest
Like so many manufacturing sectors, food and drink has an opportunity to invest in automation, digitisation and sustainability. A recent report by the Food & Drink Federation2 found that manufacturers could unlock up to £14 billion of extra value by boosting productivity to the levels seen in other advanced manufacturing sectors, including automotive and aerospace.
But food and drink firms are sometimes reticent to borrow and invest in their operations, often because listings in larger retailers are typically relatively short term, particularly for new businesses and products. That creates uncertainty and can make it more difficult to plan investments.
Still, the sector has proved to be a fantastic incubator for an incredible diversity of entrepreneurs. SMEs account for 99% of businesses in food and drink manufacturing, and there are some great examples of firms producing distinctive products and scaling-up on their own terms.
Brewing for success
Brewery Fyne Ales, have increased brewing capacity, adding fermentation tanks, and recently, installing a £100,000 centrifuge. Made possible thanks to a grant from Zero Waste Scotland and Asset Finance provided by us, the centrifuge reduces the time it takes for beer to clarify and mature, delivering a higher output from the same footprint.
It just goes to show that Britain’s food and drink sector has the recipe for success. Showcasing an incredible diversity of established brands and emerging entrepreneurs, who are creating new markets at home and abroad.
Against this backdrop, the sector should take confidence in its achievements and accelerate its ambitions to invest and automate.
You may also be interested in
1 Food & Drink Federation - Industry at a glance
2 Food & Drink Federation - Future Factory: Supercharging digital innovation in food and drink manufacturing