The Food Foundation’s annual State of the Nation’s Food Industry report, published today, has found that:
Just 5 companies (Haribo, Mars, Mondelez, PepsiCo, Kellog’s) are responsible for over 80 per cent of TV ads for snacks and confectionary aired before the watershed, despite all of them claiming not to advertise to children
Almost a third (30 per cent) of major UK restaurant chains serve main meals where over half of the options are concerningly high in salt
Almost one in five supermarket multibuy offers are on meat and dairy products, with half of these offers on processed meat (10.6 per cent of all offers) despite the known health risks of consuming too much processed meat
Only one in four major UK food businesses has a healthy sales target and discloses data on the healthiness of their sales
Restaurant chains and fast-food outlets are the least transparent sector by some way, having made no progress since last year in disclosing healthy sales data or setting targets to improve the healthiness of menus
Global food giants Mondelez, Mars and Coca-Cola still have no clear explicit board-level accountability for nutrition
Food industry representatives and their trade associations met with Defra ministers a total of 1,377 times between 2020 and 2023. This is over 40 times more meetings than those held between food NGOs and Defra ministers
The report, published annually by The Food Foundation, analyses data across an array of sources to build up a revealing picture of the UK’s food system. The findings show that currently the food environment, from the food being advertised to us, to the food that dominates menus when we eat out, to the price promotions being offered to us in supermarkets, is relentlessly pushing consumers to make unhealthy choices.
The report also shows there is a clear lack of accountability, with food industry giants failing to set targets or report on their company’s health credentials and global food giants Mondelez, Mars and Coca-Cola having no clear explicit board-level accountability for nutrition.
The new Government has committed to raise the healthiest generation of children ever, to halve the gap in healthy life expectancy and to strengthen the economy. There is increasing public awareness that this cannot be done without addressing diets and the availability and affordability of healthy food. Currently obesity and overweight are estimated to contribute to around 40,000 deaths every year and cost the UK economy an estimated £98bn annually. Last month a report from the House of Lords Committee on Food, Diet and Obesity forcefully called for the government to fix the “broken” food system and turn the tide on the public health emergency.
The Food Foundation’s annual report includes data from its Plating Up Progress benchmark which monitors 36 major UK food businesses, covering retailers, the Out of Home sector, wholesalers and manufacturers. The benchmarks looks at which of these businesses are disclosing transparent data on sales, marketing and sourcing and setting targets to support the sales of more healthy and sustainable food.
The Food Foundation found that while the majority of major food businesses have now set targets for and are reporting on reducing Scope 3 emissions, only 1 in 4 major UK food businesses has a healthy sales target and discloses data on the healthiness of their sales. This is likely being driven by the increasing number of corporate reporting directives requiring businesses to publicly disclose data on their environmental impact in comparison to the lack of regulation and absence of reporting directives on the healthiness of portfolios.
While there has been more target setting and disclosure on climate than health, there is still an intention-action gap on environment goals, with over half of businesses assessed either not reporting on progress or seeing emissions rise.
The Food Foundation is calling on the government to introduce mandatory reporting by all large food businesses on both the healthiness and sustainability of their sales. This is crucial for identifying what food is being sold (and ultimately consumed) and pointing to areas for improvement. Setting targets is equally important, serving as a North Star for driving meaningful change within companies. A great deal of progress had been made in aligning on the health metrics for food businesses to report on via the Food Data Transparency Partnership (FDTP) during the last term of government, but this has come to a complete standstill since the election. Labour ought to use the existing mechanisms for health reporting and move swiftly to place it on a mandatory footing.
“This year’s State of the Nation’s Food Industry report demonstrates the huge impact food businesses have in shaping the food we eat – and how the current system is setting us up to fail,” Rebecca Tobi, Senior Business and Investor Engagement Manager, The Food Foundation. “It’s not right that the most affordable, appealing and convenient options are often the unhealthiest ones.
“We urgently need the government to introduce regulation to raise standards and create a level playing field that enables progressive businesses to go further, faster. If we are to have any chance of ensuring the next generation are the healthiest ever - as Labour have pledged - then we simply can’t continue to ignore the major role large food companies are playing in shaping UK diets. We need regulation to ensure proper safeguards are in place to make sure businesses act responsibly, supporting people and planet as well as profit.”
Baroness Walmsley, Chair of the House of Lords Food Diet and Obesity Committee said, “When people are swimming against a tide of availability and advertising of unhealthy food, it is not helpful to tell them to swim harder. This report shows just how far the industry needs to move to support everyone to eat well, and the calls to action repeat many of those in the Lords committee’s report (Recipe for Health; a Plan to fix our broken food system). The government should act now to develop a long term strategy to fix our food system, underpinned by a new legislative framework. Without it, businesses have insufficient incentive to act in the public interest and will continue to cause harm with their relentless promotion of junk food.”
James Toop, Chief Executive of Bite Back added: “All through 2024, we’ve been running the Fuel Us, Don’t Fool Us campaign, and what we keep hearing from the young activists who drive Bite Back is how Big Food is putting profit over their health. Companies are secretive or even misleading about what’s in the junk food they’re marketing, while young people are hit with 15 billion ads online every year. Our research this year shows that the majority of Big Food’s UK sales come from unhealthy products, which has real consequences — one in three Year Six children are at future risk of food related illness. If the new government wants to be on the right side of history and truly create the “healthiest generation of children ever,” they need to tackle this issue head-on and act on the recommendations in the State of the Nation’s Food Industry report.”
Shoppers are saving on grocery essentials to be able to afford treats and indulgences during Christmas while the festive time is expected to see a boost in sales of premium private label food and drink as more people "dine at home" , shows recent industry data.
According to total till data from NIQ, sales growth in UK stores stores slowed to 4.0 per cent in the four weeks ending 2nd November, down from a 4.7 per cent rise in the previous month. The research firm suggested that this is likely due to shoppers holding back their spending in anticipation of Black Friday at the end of the month and the upcoming Christmas festivities.
Despite easing inflation, shoppers were still cautious with their grocery shop, with spend per visit down 6 per cent on last year at £18.67. They also remained savvy with how they spend, with sales of items on promotion increasing from 24 per cent to 25 per cent. NIQ noted that 36 per cent of branded sales came from promotions – up from 35 per cent a year ago – with brands heavily reliant on deals to deliver volume growth.
Meanwhile, confectionery (+10.5 per cent) was the fastest-growing category last month as shoppers stocked up on sweets for Halloween and Christmas. However, shoppers reigned in on essentials with subdued value growth in the packaged grocery category (+1.7 per cent) and a decline in unit growth (-0.8 per cent).
Moreover, despite an increased level of promotions, shoppers cut back on purchasing beer, wine and spirits with a unit sales decline of 0.4 per cent – a sign that shoppers are holding back until nearer the festivities. NIQ pointed to a recent Homescan survey showing that price reductions and promotions are almost expected by consumers ahead of Christmas. The most popular are retailer vouchers with money off (24 per cent, up from 17 per cent last year) and product promotions (35 per cent, up from 29 per cent last year), which are the key factors considered by shoppers when choosing their Christmas store.
The data also shows that the cautious consumer sentiment has put pressure on general merchandise sales in supermarkets, with value down 1.4 per cent and volumes falling 5.5 per cent.
Mike Watkins, NIQ’s UK Head of Retailer and Business Insight, said, “Total Till sales over the last four weeks have slowed, with shoppers pulling back their spend. Shoppers so far have been cautious, and it’s evident that they are saving on grocery essentials to be able to afford treats and indulgences.
“However, the start of the Christmas advertising campaigns is an opportunity for brands and retailers to entice consumers and showcase what’s new and what’s different. And given that it’s possible that many shoppers will ‘dine at home’ more in the next few weeks, we expect this to boost sales in premium private label food and drink, which NIQ expects to do very well this Christmas.”
Chancellor Rachel Reeves’ budget has served up an unexpected "double whammy" bombshell for businesses that risks driving food inflation further, delivering a potential “final fatal blow” for the beleaguered farming sector in the UK, leading food entrepreneur Ranjit Singh Boparan said on Tuesday (12).
Boparan relies on a network of hundreds of independent, family-owned farms for the supply of poultry into the UK retail and food service sector and the Budget’s inheritance tax raid on farms over £1m risk that supply being severely compromised. Under plans announced in the Budget, inheritance tax will be charged at 20 per cent on farms worth more than £1m.
Boparan, President of 2 Sisters Food Group, explained that not only will this move force many farms out of business, restrict supply and increase costs, it does not align with the Labour government’s aspiration to adopt policies to ensure food security in the UK: in other words, to ensure the UK grows and supplies most of the food it eats.
He said: “This Budget was a disaster for business and will deliver a final fatal blow to the thousands of small family-owned farms we in the food manufacturing sector rely upon day in, day out. They provide security of supply. This move will create food inflation and food insecurity. It will mean less people investing in food production in the UK.
“Farmers have been hit with massive inflationary rise in costs in recent years like feed, energy, labour, then we had a couple of particularly challenging years with high levels of Avian Influenza and the war in Ukraine. This instability in the supply chain means we’re always vulnerable to geo-political events.”
His public comments come as confidence in the UK poultry sector’s farming base remains worryingly low. NFU survey data from earlier this year suggested 15% of chicken meat producers were either unlikely or unsure if they would still be producing poultry “beyond November 2025.”
Boparan added: “All this has pushed British poultry to breaking point, and I see this latest inheritance tax rise as the issue that will push thousands of farms over the edge, it really is quite unbelievable given what they’ve had to endure. This makes a mockery of the government claiming to want a self-sustaining farming sector that champions British-made food. This tax rise does the exact opposite of that – it kills the sector, stifles supply and ultimately prices will rise.”
On the Budget’s overall impact on private, family-run companies, his own modelling suggests it could cost his portfolio of businesses – ranging from food production to high street restaurant brands - “many tens of millions” – which ultimately will be passed onto the customer.
He added: “The retailer sector has already quoted it will cost £1bn and in truth our sector won't be much behind that. £2bn on-cost is going to cause food inflation, all the while we've been spending all our time trying to bring inflation down.
“This Budget has done very little to encourage business owners to invest and build. Some businesses will find these changes a burden and it makes it more difficult to keep running smoothly and maintain value. Privately-owned businesses are the backbone of the UK economy and take a different view on long-term investment. All this budget package does is reduce confidence and increases the chances of closures or selling to Private Equity for example, which invariably generates less tax.”
The tax bombshell has also triggered a backlash from business, farming and rural communities. Last week, Tom Bradshaw, chief executive of the National Farmers’ Union (NFU), said around “75 per cent of the total farmed area” would be subject to the extended death tax.
A vast majority of consumers still feel cash is their most widely used payment method while most consumers carry cash in case of an emergency, shows a recent survey.
According to "Why Won’t Cash Just Die?!!", a new research report from PayComplete, surveying 5,000 consumers from the UK, US, Germany, France, Italy, and Spain, 89 per cent of consumers surveyed consider the ability to pay in cash as important for their customer satisfaction. 90 per cent of consumers surveyed said that cash is their most widely used payment method
One of the strongest drivers for cash use is its close association with the community, from protecting favourite shops to education and social inclusivity, states the survey report. Cash continues to be a beacon of reliability in difficult situations with over two-thirds (69 per cent) of consumers surveyed carrying cash in case of an emergency.
More than three-quarters of consumers (81 per cent) say that they use cash to minimise data sharing while over a third (34 per cent) of those surveyed prefer using cash to manage their spending.
The report warns that organisations that tell customers that they can’t pay with cash are igniting negative emotions. These feelings range from disappointment (31 per cent) to frustration (21 per cent), and even anger (17 per cent).
One in three (33 per cent) cash users fall within the 25-44 age range, and nearly two-thirds (60 per cent) belong to the mid-range income brackets, earning between £19,000 and £63,999.
“All the noise around the death of cash is just that. While digital and electronic payment providers have been quick to kill and downplay the importance of cash in consumers’ lives, our research shows it continues to hold a significant place in the payment ecosystem, customer satisfaction, and in maintaining and strengthening communities,” said Simon James, CEO of PayComplete.
“Over half (59%) of cash users believe that the ability to pay with physical money supports the inclusivity of all members of the community. While a similar number (52%) agree that cash will continue to have a prominent place in society for the foreseeable future. Businesses that turn their back on cash risk being seen as undermining local communities.
“Saving businesses from card processing fees is not the only reason people stick with cash in the community. Our research shows that education and social inclusion are equally strong motivators. In fact, nearly two-thirds (62 per cent) of consumers believe using physical cash helps children develop financial management skills and track their spending.
“Teaching the next generation about money is critically important. Yet, research from the Money and Pensions Service has found that less than half of children aged 7-17 in the UK have received a meaningful financial education. Using cash as a tool to help educate children can help offset this trend.”
There exists a huge gap between public's intention and actions when it comes to health and wellness with cost being a major deciding factor, shows a recent report, also highlighting a shift in how people structure their meals and attitudes towards global mental and physical health.
Kantar's Who Cares Who Does: Decoding Wellness further adds thatwhile 62 per cent see processed food as harmful, only 37 per cent actively avoid it. It’s a similar pattern for sugary drinks: 73 per cent see them as harmful, but fewer than half (48 per cent) are cutting back on products high in sugar.
Savoury snacks and carbonated soft drinks have the highest product penetration of the FMCG product categories at 90 per cent and 77 per cent respectively.
Cost holds a strong influence over people’s ability to choose healthy products. More than half of people (52 per cent) cite the high cost of healthier options as the main barrier to buying them. Meanwhile, a lack of trust and confusion about what constitutes truly healthy packaged foods also prevents consumers from being able to make healthy choices.
It was seen earlier in Kantar Worldpanel’s Demand Moments that howsnacking has become a full-blown behaviour in the UK, Germany and other markets. In the UK, snacks now make up 28 per cent of eating occasions, surpassing breakfast at 27 per cent, showing a shift in how people structure their meals.
Natalie Babbage, Global Solutions Director, at Kantar Worldpanel at Kantar, said, “People want to do better but are caught in cycles of stress, unhealthy eating habits, and barriers to effective weight management, which are often exacerbated by high costs.
"Brands have a critical opportunity to make a difference. By tackling affordability, convenience, transparency, and emotional needs, they can bridge the gap between how people want to live and their reality, helping improve health outcomes for people around the world.”
The report also shows that while78 per cent of people believe they are responsible for their health, less than half proactively engage with their physical health, and even fewer invest effort into their mental wellbeing.
Higher prices for staples such as vegetable oils, wheat, cheese and sugar have pushed global costs to their highest level in 18 months, signalling more pain ahead for shoppers.
The UN Food and Agriculture Organization’s (FAO) food price index rose to 127.4 in October — the highest level since April 2023. The figure, published on Friday (8), was up 5.5 per cent from October last year. Prices for food commodities have risen steadily since the start of the year.
Although food costs remain well below levels reached in March 2022, consumers are already having to pay more for groceries as increases are passed on from food manufacturers to shoppers. Food price pressures across the G7 major advanced economies ticked up for the first time in two years in September, complicating rate-setters’ attempts to cut rates to support growth and jobs.
The FAO Vegetable Oil Price Index spiked by 7.3 percent in October, hitting a two-year high as a result of rising quotations for palm, soy, sunflower and rapeseed oil, driven mainly by concerns about production.
The FAO Cereal Price Index increased by 0.9 percent in October, led by rising wheat and maize export prices. Global wheat prices were affected by unfavorable weather conditions in major northern hemisphere exporters as well as the re-introduction of an unofficial price floor in the Russian Federation and rising tensions in the Black Sea region.
The FAO Sugar Price Index increased by 2.6 percent amid persisting concerns over the 2024/25 production outlook in Brazil following extended dry weather conditions. Rising international crude oil prices also contributed to the increase in sugar quotations by shifting more sugarcane toward ethanol production, while the weakening of the Brazilian real against the United States dollar limited the increase.
The FAO Dairy Price Index rose by 1.9 percent in October, averaging 21.4 percent above its level the same time last year. The increase was primarily driven by higher international cheese and butter prices, while quotations for milk powders declined.
Bucking the general upward trend, the FAO Meat Price Index dropped by 0.3 percent from September, mainly due to lower pig meat prices resulting from increased slaughter rates in Western Europe amid weak domestic and international demand. World poultry prices fell slightly in October, while those of ovine meat remained stable. By contrast, bovine meat prices increased moderately, underpinned by stronger international purchases.