The United Kingdom (UK) is a large market for food and beverages. Total consumer expenditure on food, drink and catering in the UK continued to grow by 2.5% in 2019 to £234 billion, and spending on food shopping increased by 37% since 2010.

The food industry has been steadily growing over the past decade, given the country’s large population, estimated at around 67million as of 2020 (Source: the International Monetary Fund), the 21^st largest population worldwide, and the second largest in Europe after Germany. The UK offers a high standard of living that is ranked 19th worldwide in 2021, with a GDP per capita of USD 42,417 in 2019 which is the 22nd highest globally. The UK’s large agri-food market is also driven by a significant number of tourists. In fact, visits to the UK reached 40.9 million in 2019 and inbound visitors spending totaled £28.4 billion for same year. In addition to the high number of visitors, the UK and specially London is a global business hub attracting multinational businesses. Also, the UK is a hub for international students as it is considered among the best countries in terms of education, which further promotes the country as a multicultural destination. The country’s large multicultural population, along with the rise in tourists, and a high per capita GDP continue to drive demand for imported and high-value processed food. While being self-sufficient in products like barley, wheat, milk, lamb and mutton, the UK still imports large amounts of fruit and vegetables and other farm products including pork, despite having a utilized agricultural area that covers 72% of the land (Source: Agriculture in the UK 2019, Department for Environment, Food and Rural Affairs). This leads to a significant reliance on food imports, with about 45% of food consumption being imported in 2019 (Source: UK Food Security Report 2021, Department for Environment Food & Rural Affairs).

As these trends continue to develop, serious and abundant export opportunities are presented to Lebanese agri-food companies. The presence of a strong and growing Lebanese expatriate population in the UK, as well as a larger Arab population, drives further the demand for agri-food products from Lebanon.

Products with high growth potential

Packaged food segment is the main food market in the UK. In fact, the country consumed about four times as much packaged food as it does fresh produce in 2015, with similar patterns in the U.S. and some European countries, as working hours increased and more women entered the workplace.

However, consumer preferences have been changing, with a reduction in the consumption of salt, sugar, and processed meat, while consumption of fruit, vegetables and fibre was relatively unchanged (Source: Food Consumption in the UK, Rand Europe).

While the UK population continues to consume saturated fat, British consumers are increasingly eating with a conscience, as spending on ethical food and drink increased by 43% from £5.7 billion in 2013 to £8.2 billion in 2018 and is expected to reach £9.6 billion between 2019 and 2023. This includes spending on organic, Fairtrade, Rainforest Alliance and Marine Stewardship Council (MSC) certified products. In addition, organic food consumption rose significantly in 2020 across the UK, as people sought higher quality food, with sales of fresh vegetables rising by more than 15% and meat and fish by nearly 17%. There is still a strong potential for organic packaged food, as consumers are starting to consider a healthy lifestyle and are paying more attention to the ingredients in their food, driven by COVID-19 health concerns. Also, some individuals increasingly care about the provenance of their food and production methods, but this mainly relates to certain food groups (Source: Food consumption in the UK: Trends, attitudes and drivers, Rand Europe). The government is encouraging these shifts in eating patterns. In fact, the UK banned daytime television and internet ads promoting unhealthy food.

The increased demand for healthier food is a trend that is partly driven by the aging population and increased health consciousness of consumers. In parallel, the increasingly high-paced society and the rising number of single households are driving the demand for convenient ready-to-eat meals, desserts, and baking mixes. Ethnic foods, health and super foods, “free from” products are also attracting more consumers (Source: United Kingdom Retails Foods 2019, USDA Foreign Agricultural Service).

The large consumption of packaged food provides an opportunity for Lebanese foods, including a large portion of Lebanese Mezze and “mouneh” products, as many products of the Lebanese Mezze are served as ready-to-eat meals. In addition, the emerging trend towards a healthy diet creates space for the Lebanese Mezze, which is perceived as healthy, as it mainly consists of fruits and vegetables. These opportunities for Lebanese producers are amplified by the impact of the Brexit on the UK food and beverage market. In this context, according to data released by the European Commission, exports of agri-food from the EU fell significantly in January 2021, mainly due to a drop of €800m in the value of exported-agri-food products to the UK. This creates space for Lebanese agri-food producers to aim to replace some niche products that were supplied by the EU.

Consumer Profiles

Understanding consumer profiles and preferences is crucial for exporters who consider entering the UK food and beverages market given the country’s wide cultural diversity and consumption patterns. Euromonitor International identified five consumer types in the UK:

• Cautious planners who represent 30% of total consumers in UK. They are characterized by being cautious about their money, are not comfortable with e-commerce and rarely make impulse purchases.
• Conservative homebody consumers who represent 25% of total consumers and are not image conscious or interested in high-end products.
• Secure Traditionalist represent 12% of all consumers and avoid premium branded products as they prefer to save than to spend money.
• Empowered activists who represent 22% of all consumers and seek products with green or eco-conscious label.
• Undaunted Strivers represent 11% of total consumers. They are characterized by being image conscious, tech-savy and like to try new things.

Although vegan and vegetarian diets are becoming increasingly more popular in UK, still majority of people (more than 86%) consume meat. Vegetarians represent only 6% of total population and vegans 3%. The youth aged 18 to 23 years old are the largest number of meat-free people (20% of the generation) (Source: UK Diet Trends 2021, Finder.com)

What does the UK import? And from where?

According to ITC Trade Map, the UK imported in 2020 around USD 42.1bn worth of processed food and agro-based products, the fourth largest importer of such products after the U.S, China and Germany. It is important to mention that following the Brexit, which came into effect starting January 2021, trade volumes between the UK and the European Union fell significantly, especially goods imports from the latter. However, it is difficult to separate the impact of the COVID-19 pandemic on the trade in goods from that of the Brexit.

Top imported agri-food products in 2020 in the UK include:

• Beverage, spirits and vinegar – constituting for 19% of total imported agri-food products. These are mainly imported from France (23%) and Italy (14%), Netherlands (8%), Spain (6.5%), the U.S. (5.6%), Germany (5.5%), Irelands (5.2%), Belgium (4.6%) and Australia (4.5%).
• Preparations of cereals, flour, starch, and milk – constituting 11% of total imported agri-food products. These are mainly imported from Germany (15%), Italy and France (14% each), Ireland (13%), Netherlands (9%), Belgium (8%), Poland (6%) and Spain (4%).
• Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates– constituting 10.8% of total imported agri-food products. These are mainly imported from Germany and Thailand (14% each), Ireland (11%), Poland (10%), Denmark (6%) and the Netherlands (5%).
• Miscellaneous edible preparations, including sauces, ice cream and extracts, essence and concentrates of coffee, tea or mate, as well as soups and yeasts: constituting for 9.7% of total imported agri-food products. These are mainly imported from Netherlands (15%), Germany (14%), Ireland (10.8%), France (8.5%), the U.S. (6.5%), Italy (5.7%) and Poland (5%).
• Preparations of vegetables, fruit, nuts or other parts of plants: constituting for 9.2% of total imported agri-food products. These are mainly imported from Belgium (16.7%), Netherlands (15%), Italy (14.4%), Spain (11.2%), Germany (8.7%) and France (6%).
• Dairy produce; birds’ eggs; natural honey; edible products of animal origin: constituting for 9.1% of total imported agri-food products. These are mainly imported from Ireland (25.8%), France (15%), Germany (11%), Netherlands (10.4%), Italy (8.2%), Belgium (5.6%) and Denmark (5.4%).

The UK – Lebanon Trade

The UK ranked in the 12^th top destination for Lebanese agri-food exports in 2020, after being ranked as the top eighth main market in 2019 (Source: ITC Trade Map). Lebanese exports to the UK grew at a CAGR of 11.3% between 2010 and 2019, before declining in 2020 given the COVID-19-related challenges, as well as the deteriorating economic conditions in Lebanon. Around 200 VAT registered UK businesses imported goods from Lebanon in 2018 (Source: Continuing the United Kingdom’s Trade Relationship with the Republic of Lebanon, Foreign & Commonwealth Office).

Based on ITC Trade Map, top exported agri-food products from Lebanon include:

• Beverages, spirits and vinegar (44%), with wine being a major product
• Preparations of vegetables, fruit, nuts or other parts of plants including pickles (18%)
• Animal or vegetable fats and oils, with a large concentration of sesame oil (14%)
• Miscellaneous edible preparations, mostly sauces and seasonings (11.5%)

Based on ITC Export Potential Map, Lebanon has the potential to increase its agri-food exports to UK in:

• Meat
• Nuts and seeds
• Vegetables preserved by vinegar or acetic acid
• Vegetables and mixtures prepared or preserved (not in vinegar)
• Chocolate and other cocoa preparations

It is important to note that currently all food products of animal origin such as dairy, meat, honey, eggs among others, are not allowed to enter the UK from Lebanon.