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.”
Brits are increasingly leaning towards cooking from scratch and are ditching ultra processed food, thus embracing a much simpler approach to their diet, a recent report has stated.
According to a recent report from John Lewis Partnership released on Friday (17), supermarket Waitrose has reported that it’s back to basics for many in 2025 due to a growing awareness around ultra processed foods, with many turning away from low-fat, highly processed products in favour of less-processed, whole food ingredients.
Whole milk and full-fat Greek yogurt sales are up 11 per cent and 21 per cent compared to skimmed milk and Greek style yoghurt a year ago.
Block butter sales are up by +20 per cent as compared to dairy spreads while brown rice is seeing +7 per cent more sales as compared to white rice.
The report adds that sourdough bread sales are up by +20 per cent as compared to white bread while full fat Greek yoghurt recorded +21 per cent more sales than Greek style yoghurt.
Over the past 30 days, searches on Waitrose website whole food searches soared with ‘full fat milk’ and ‘full fat yoghurt’ skyrocketing 417 per cent and 233 per cent.
The shfit reflects the wider growing awareness of effects of ultra-processed foods, thanks in no small part to Dr Chris van Tulleken’s bestselling book Ultra-Processed People and its continued momentum in 2024 and into 2025.
His eye-opening, rigorously researched account of ultra-processed foods and their effect on our health turned many people towards cooking from scratch, with unprocessed or minimally processed ingredients.
Maddy Wilson, Director of Waitrose Own Brand comments, “There’s been a lot of bad press around so-called ‘healthy’ products which aren’t nutritious and don’t taste great, however the growing awareness of ultra processed food in our diets has seen many customers seeking the basics and embracing a much simpler approach to their diet.”
Waitrose Food & Drink report released last year highlighted that 54 per cent of those surveyed proactively avoid processed foods.
Consumer confidence dropped marginally in the last quarter of 2024, shows a recent industry report, suggesting concerns around disposable income and prices of essentials remain though consumer confidence is expected to recover in 2025.
According to the Deloitte consumer tracker released today (20), this is the first time since 2022 that confidence has stalled, although confidence varied in different areas examined by the survey.
Consumer sentiment towards personal debt rose by six percentage points, although this was not enough to compensate for falls in other measures. There was a four percentage point drop in confidence about household disposable income and a 14 percentage point drop in confidence about the UK economy.
Almost half (42 per cent) of consumers said they spent more on Christmas this year, but most (54 per cent) put this down to higher prices.
The Deloitte survey is based on responses from 3,200 UK consumers aged over 18 and was taken between 3 and 6 January.
Céline Fenech, consumer insight lead at Deloitte, said, “While many consumers appear to be feeling better about paying debts or borrowing following the cuts to interest rates, concerns around disposable income and prices of essentials remain.
“Consumers continue to look for value and make compromises following a once-in-a-generation surge in costs that has diminished consumers’ spending power.
“Many consumers continue to compare today’s higher prices to those of pre-pandemic, regardless of the rate of inflation falling.”
Fenech added that despite the fall in confidence overall, Deloitte expected consumer confidence to recover in 2025.
Ian Stewart, chief economist at Deloitte, said, “Despite a challenging start to the year, we expect to see growth coming back over the summer, with interest rate cuts, rising real incomes and buoyant government spending helping drive the recovery.
“For 2025 as a whole, we expect UK GDP growth to come in at around 1 per cent, a rather better outcome than last year.”
Among the survey’s findings were that two in five consumers (40 per cent) said they did their Christmas shopping before December, which could have been a tactic to spread the cost of the festive season.
Over a third agreed that they bought more gifts (37 per cent) on discount and more food (43 per cent) using promotions and loyalty cards discounts.
About 52 per cent of those surveyed greed they were generally more frugal and careful this Christmas, while half (50 per cent) agreed they consciously cut down on any luxuries.
Oliver Vernon-Harcourt, head of retail at Deloitte, said, “As many grapple with an inflation hangover, consumers likely need more time to digest the volatility and uncertainty of the last few years.
“Consumer recovery this year will depend on what happens with inflation, especially in the more essential categories like food.
“With our research showing that 80 per cent of consumers still expect prices to go up further in 2025, consumer demand is likely to remain subdued while things settle in the first half of the year.
“Beyond that, with factors such as the rise in the minimum living wage, more public spending, easing monetary and fiscal policies – combined with consumer confidence hopefully continuing to recover – we should see demand improving.”
Trust in UK-produced food has reached its highest level since 2021 following three years of falling confidence in standards.
Most (75 per cent) adults now say they trust food produced in the UK. This is a rise from 71 per cent in 2023, although still below the level of trust felt by shoppers in 2021 (81 per cent).
The figure rises to 91 per cent when consumers are asked whether they trust food "exclusively produced" within the UK.
Significantly, more people now say they trust UK food more than NHS care, water from the tap, or any other core service or utility.
A clear majority (85 per cent) of respondents to the survey say they trust the country's farmers, compared to just 9 per cent of whom express distrust.
Animal welfare remains the most important aspect of food production for consumers, and 72 per cent of adults say farmers follow good animal welfare standards.
And a majority of respondents (72 per cent) say that assurance labels were a reason to trust food, while 77 per cent say that labels showing where food comes from helps build trust.
The findings, which draw on research from over 3,000 UK consumers, form part of Red Tractor’s annual Trust in Food Index. First produced in 2021, it is designed to provide the most comprehensive assessment of consumer attitudes to food in the UK.
Jim Moseley, CEO of Red Tractor, said the past four years had been 'brutal' for the food and farming industry. Farmers have particularly faced a series of challenges, such as severe weather events, poor harvests, and the prospect of rising taxes on the horizon.
"Not since the foot-and-mouth crisis over 20 years ago has the food industry had so much to contend with," he said.
But this year’s findings will likely give a boost following years of rising costs and higher prices for consumers.
Meanwhile, the importance of the Red Tractor logo when choosing food has risen to its highest level in the four years since the Trust in Food Index began.
Moseley concluded, "It should be a source of huge pride to everyone involved in food production in the UK that food is now more trusted than water or any other basic service we rely on every day
"Despite the extremely challenging environment, farmers’ efforts to work to some of the highest standards in the world has played a significant role in driving a resurgence of consumer trust in UK food."
Convenience retail continues to remain a robust sector despite rising crime and state intervention on unhealthy products, states leading property adviser Christie & Co today (16) in its annual report.
Christie & Co's report "Business Outlook 2025" reflects on key market activity, trends and challenges of 2024 and forecasts what 2025 might bring across the industries, including the convenience retail sector.
The report notes that in 2024 retail deal activity continued in the same strong vein as in H2 2023, and convenience retail remains a robust sector driven by need, providing solid investment opportunities. As such, Christie & Co's retail price index rose by 7.3 per cent.
Despite operational challenges from rising crime and state intervention on unhealthy products, there was a strong demand for opportunities.
According to Christie & Co 2024 data revealed in the report, there was a 20 per cent increase in the number of stores sold compared to 2023, with an average of ten viewings per sale.
Ever-increasing overheads will continue to present challenges for store owners and are causing the multiples to increase the turnover threshold for profitable stores.
Christie & Co notes that, as costs rise, continued divestment from corporate multiple retailers is expected and these divestments will inevitably present new opportunities for independent buyers in 2025.
The report also outlines Christie & Co's market predictions for the year ahead
Retailers will continue to face rising costs as a result of measures outlined in the Autumn Budget, and this will affect wages in particular.
This has the potential to cause inflation. However, as convenience stores are needs-driven, consumers will accept price rises or seek out value for money, states the report.
Retailers may be less inclined to hire more staff because of increasing wages and taxations, as announced in the Budget.
Due to increasing Government restrictions on unhealthy products, suppliers will have to adapt their offerings to fit requirements or sellers will have to evolve their product range, the report added.
It is unlikely that there will be a reduction in demand for sites, but purchasers will most likely factor cost increases into their offers while divestments from corporate multiple retailers are expected to continue as they continue to see costs go up and "tail end" stores may struggle, states the report.
Steve Rodell, Managing Director of Retail and Leisure at Christie & Co comments, “We are in the very fortunate position to be at the forefront of convenience retail business-to-business transactions, and we have worked very hard to become the market leaders.
"This is now a valuable position to be in, as other areas of retail, including much of the high street, struggle with internet shopping and multiple channels of competition.
"Convenience retail remains a needs-based sector, and as long as retailers listen to customers and satisfy local demand there is a good future for the convenience store.”
"Cultural entropy" costs retailers an estimated £10.8 billion annually, making up almost a tenth of the £122 billion lost annually across UK industries due to workplace fear, amounting to 5 per cent of the nation’s GDP, states a recent report.
According to research by Katharine Williams, founder of Neema, in terms of economic loss, the retail sector ranks fifth, sitting below healthcare, manufacturing, real estate and construction and financial services.
The rise of e-commerce, automation in supply chains, and data-driven decision-making has transformed operational models.
This shift has increased pressure on leadership to adapt quickly, often leading to fear-based behaviours amplified by job security concerns, evolving customer expectations, and the challenge of balancing technological innovation with workforce retention, states the report.
Defined by the Barrett Values Centre, cultural entropy is a measure of unproductive and fear-based leadership behaviours such as blame, bureaucracy, and mistrust, which divert critical resources and energy away from productive activities, hampering revenue growth and impacting employee engagement across various sectors.
In terms of cultural entropy, by comparison to other sectors retail performs quite well with an entropy score of 17 per cent, sitting below sectors such as utilities and healthcare which have greater levels of fear-based behaviours.
The study finds that although good leaders don’t intentionally foster fear-based cultures, many unwittingly do. Despite over 50 per cent of UK organisations offering leadership development programmes, between 15 per cent and 22 per cent of all leadership behaviour remains fear-based.
This is because, like all humans, 90-95 per cent of a leader’s thoughts and behaviours are driven by their subconscious processing—which is often fear-based and shaped by emotional triggers, habits, and learned responses.
As a result, even highly experienced, well-intentioned leaders operate with fully deliberate, intentional thought only 5-10 per cent of the time, making them susceptible to automatic responses that may not align with either their own or the company’s values.
Williams said, “I see this as positive news for CEOs within retail. For those who have been left dissatisfied by the results of costly, time-intensive cultural interventions and leadership development programmes, there is a bright light at the end of the tunnel.
"Cultural Entropy costs will drastically reduce as leaders increase awareness of the subconscious patterns and habits that fuel fear-based leadership behaviours.
"As a coach, I use neuroscience-backed techniques, honed intuition, and rigorous diagnostics to help clients access and integrate what’s hidden in their subconscious. Integrating the subconscious with the conscious makes the invisible, visible – and what you can see you can address. At Neema, we call this ‘Integrated Leadership’.”