Food and Drink Businesses Set For Rapid Expansion
Companies in the food and drink sector plan to create 73,000 new jobs with the majority hoping to expand internationally
Businesses in the food and drink industry are optimistic about future growth in with 72% announcing export plans and 100% predicting growth in the next five years, the latest Investing for Growth report by Lloyds Bank Commercial Banking has found
Four out of five food and drink companies said they expect a 25% revenue increase by 2020, with businesses planning to target overseas markets in order to achieve ambitious plans.
Western Europe was the most popular target overseas market, with 60% of respondents planning to enter countries in the region, followed by North America (49%), and Asia and the Far East (43%).
The survey – featuring 113 companies across alcohol, fresh produce, and food and drink products – reported that firms across Wales and England will create 73,000 new jobs by 2020
However, a lack of skilled labour was named as one of the main barriers to growth by a quarter of the businesses, followed by a possible EU exit.
Andrew Connors, head of mid-sized business at Lloyds Bank, said:
“Productivity presents an ongoing challenge for the UK economy. Against this backdrop, the continued commitment from food and drink manufacturers to drive productivity and innovation through R&D is a clear indication of the crucial role this sector plays in the broader economy.
“Food and drink is without doubt a sector that will help Britain prosper.”