Rising Costs, Shifting Values: UK Food Sector Finds Fresh Opportunities In Challenging Times

UK retailers and suppliers are facing mounting operational pressures as the cost of doing business continues to rise. From packaging and raw materials to labour and wage increases, the knock-on effects are filtering down the supply chain — and ultimately to the checkout.

Prices are climbing, and in today’s uncertain economic climate, “value” has become the watchword for both businesses and consumers.

Despite the squeeze, shoppers are not abandoning quality. Retailers report that people remain willing to spend more on premium items if they feel confident about the provenance and standard of what they’re buying. “Customers want to know they’re getting excellent quality and real value for money,” said one retailer. That combination of trust and perceived worth is becoming the decisive factor in purchasing decisions.

The artisan and speciality food sector has been particularly adept at tapping into this mindset. With more people dining at home rather than eating out, consumers are seeking affordable luxuries and small indulgences that elevate the everyday. As one producer noted, “People are trying to spend that little bit more and have a nice time at home.”

However, wage rises and the cost of staffing are forcing retailers to rethink how service is delivered. Many are trialling a hybrid approach that balances self-service technology with the human touch, aiming to preserve quality and customer satisfaction while managing payroll costs.

Trade challenges are also influencing strategy. Recent tariffs affecting trade with the USA have prompted several beverage companies to explore co-packing options stateside, allowing them to sidestep costs and maintain competitive pricing in export markets.

Meanwhile, shifting consumer values are reshaping product development. The demand for healthier foods continues to grow, but today’s shoppers are looking beyond simple “low fat” or “high protein” claims. They want products with genuine nutritional substance and transparent ingredient lists.

That said, affordability remains a sticking point. As one industry voice cautioned, many younger consumers simply can’t stretch to “upweighted” health-focused products. For the sector, ensuring nutritious food remains accessible and affordable will be key to sustainable growth.

Against this backdrop of change and opportunity, the Fresh Produce Consortium’s Fresh Produce Hub at IFE 2026 will provide an essential platform for the industry to reconnect, refocus and trade face-to-face. Taking place from 30 March to 1 April 2026, the Hub will bring together exhibitors and key buyers from across retail, hospitality, foodservice and manufacturing — all under one roof.

Leading names such as Tesco, Waitrose, M&S, Amazon Fresh, Arla, PepsiCo, Costa Coffee and Sainsbury’s will be there, actively looking to discover new products and forge lasting partnerships. With over 25,000 verified attendees across five co-located events, IFE 2026 offers an unrivalled opportunity to connect with:

• 36% wholesale, distribution, import and export professionals

• 20% foodservice and hospitality buyers

• 15% retail representatives

• 12% manufacturers seeking fresh, quality produce suppliers

Whether the goal is to boost brand visibility, attract new customers or expand into fresh market sectors, the FPC Fresh Produce Hub will stand as the ideal stage to showcase excellence and innovation — and a powerful reminder that even in challenging times, this industry continues to thrive through collaboration, creativity and quality.

To find out more and explore the opportunities, email linda@freshproduce.org.uk.