Business confidence in Britain’s food manufacturing sector has fallen to its lowest since the 2022 energy crisis, the industry’s main lobby group said on Thursday, highlighting the growing impact of the war in Iran.
The Food and Drink Federation, which represents the UK’s 12,000 food and drink manufacturers, said its members’ confidence dropped to -64 in the first quarter of 2026, the lowest level since Russia’s invasion of Ukraine in 2022 and on a par with the level seen at the start of the COVID pandemic. The previous confidence score was -31%.
The FDF’s latest State of Industry report also shows:
• Rising energy prices are pushing up production costs. The cost of plastic packaging has risen by up to 15%, while some members reported transport costs increasing by more than 20%. The cost of fertiliser remains a concern.
• 82% of members say they will have to raise prices, 33% will reduce headcount or marketing spend, and 26% will pause or cancel planned investment.
• 69% of members say support with energy costs should be a government priority to ease cost pressures.
• An outlook confidence score for the next quarter of -51%.
• In April, the FDF forecast that food and drink inflation could reach at least 9% by the end of the year.
(Reporting by James Davey）
