The food trade between the United Kingdom and the United States is a dynamic exchange involving a wide range of products influenced by trade agreements, regulations, and consumer tastes.
This trade relationship, rooted in history, continues to evolve with market conditions and regulatory changes. The UK and USA trade various food products, each country leveraging its agricultural strengths to meet the demands of consumers on both sides of the Atlantic.
From the UK, popular exports to the USA include British whisky and gin, valued at over £1.3 billion in 2022, and snack foods such as chocolate, biscuits, and crisps, which were valued at approximately £200 million in 2021. Additionally, UK cheeses like cheddar and stilton are well-liked in the USA, with cheese exports reaching £94 million in 2022. The UK also exports some meat products, including pork, to the American market, with pork exports valued at £85 million in 2021.
From the USA, the UK imports grains and cereals, including wheat and corn, with grain exports valued at $500 million in 2022. American beef and poultry are also sold in the UK, subject to strict regulations, with meat exports around $450 million in 2022. Nuts and dried fruits, such as almonds and pistachios, are popular imports, valued at $300 million in 2021.
Additionally, American processed foods, including snacks and ready meals, reached $350 million in 2022. The food trade between the UK and the USA is shaped by trade agreements and regulatory standards. After Brexit, the UK has been working on new trade agreements with the USA to replace those from when it was part of the EU.
These agreements aim to reduce tariffs and make trade smoother, with the Trade and Cooperation Agreement (TCA) being one effort to address trade barriers. Both countries have strict food safety standards set by the UK’s Food Standards Agency (FSA) and the USA’s Food and Drug Administration (FDA). The UK’s stricter policies on genetically modified organisms (GMOs) compared to the USA can complicate some imports, and differences in animal welfare and environmental standards also affect trade, requiring alignment of regulations.
Despite these challenges, there are significant opportunities in the food trade between the UK and the USA.
Tariffs and quotas can affect trade costs and volumes, and regulatory differences can create trade barriers, but the growing demand for premium, organic, and specialty food products in both countries presents substantial growth potential. The organic food market in the UK was worth £2.79 billion in 2021, indicating significant growth potential. Collaboration in food technology and innovation can lead to new products and processes, enhancing trade, with the food tech sector in the USA valued at $250 billion in 2022.
Current trends in food marketing, such as the growth of e-commerce and a focus on sustainability, are also shaping the future of food trade between the UK and the USA. E-commerce has transformed food trade, enabling direct-to-consumer sales that bypass traditional retail channels, making it easier for food producers in the UK and the USA to access each other’s markets. Online grocery sales in the UK grew by 76% in 2020 and continue to be a significant market segment. Consumers in both the UK and the USA are increasingly focused on sustainability and ethical sourcing, driving changes in food production, packaging, and marketing, with an emphasis on environmentally friendly practices and transparent supply chains. In 2021, 40% of UK consumers reported they are willing to pay more for sustainably sourced products.
In conclusion, the food trade between the UK and the USA is a vibrant and evolving sector shaped by economic, regulatory, and consumer factors. Both countries benefit from a deepening trade relationship, leveraging their strengths to meet diverse market needs. As new trade agreements are made and regulatory challenges are addressed, the future of this transatlantic food trade looks dynamic and promising.