Why this market
The United Kingdom (UK) is one of NSW’s oldest and closely valued international trading partners. We share a common language, close cultural ties and similar business landscapes.
In the UK, NSW enjoys a reputation for high-quality, sustainable produce with a robust regulatory framework, which is appealing to UK consumers and retailers. These characteristics, combined with the UK’s ambitions to diversify supply chains beyond Europe, are driving strong demand for NSW food and beverage products. NSW’s agrifood exports to the UK increased 18% last year and the UK grocery market is projected to reach a market value of A$470bn by 2027.
The Australia-UK free trade agreement came into effect in May 2023, further amplifying the opportunities for NSW in the market. It eliminates 99% of tariffs on our exports and is especially pertinent for Australian food and beverage exporters due to the reduction in costs and simplified processes.
While the industry is increasingly digitalising and technology is driving transformation, in-store purchases in the major supermarkets still dominate consumer spending. Customers value sustainability, health and eco-friendly practices.
While the market is competitive, it offers ample opportunity for differentiated products with proven success, to succeed.