Food & Drink Processing Machinery Manufacturing in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Food & Drink Processing Machinery Manufacturing in the UK industry analysis

Food, Beverage and Tobacco Processing Machinery Manufacturing in Europe remains a dynamic and evolving industry shaped by the growing emphasis on energy efficiency, sustainability and innovation. The sector is facing challenges due to economic constraints but is also witnessing opportunities driven by the rise of plant-based and organic food trends, leading to a demand for specialised equipment in food processing. In recent years, the industry has seen a decline in revenue due to low private investments, exacerbated by the escalating costs of ingredients. Industry revenue is projected to drop at a compound annual rate of 6.1% to €28.3 billion over the five years through 2024, including a 4.5% dip in the current year.

Trends and Insights

• Limited investment due to rising costs hampers food processing machine growth. Manufacturers struggle with surging ingredient expenses, preventing them from upgrading machinery. This financial strain restricts the industry's potential for expansion and efficiency improvements.
• US tariffs will significantly reduce exports, squeezing market access and sales. With a 10% tariff now applied to most European exports, manufacturers will see their products become less competitive in the US, leading to a projected drop in export volumes and revenue. This immediate price hike is expected to dampen demand from US buyers, directly impacting the industry's export performance.
• Technological advancement drives market concentration in this industry. Companies mastering innovative technologies gain a competitive edge by improving efficiency and product quality.