New FWD research on sector’s contribution to the economy
FWD’s latest published research, Going For Growth, examines the vital contribution of the food and drink wholesale sector to the UK economy
The report provides key insights into the wholesale sector, including job figures, turnover and tax contribution of wholesalers, suppliers and customers, highlighting the vital role of wholesale distribution in enabling a thriving food and drink sector.
Produced in conjunction with Capital Economics, the report demonstrates how the wholesale sector is key to supporting both foodservice and convenience retail, and is a cornerstone of our economy and communities. It is because of this vital importance to the UK food and drink supply chain that we felt it was important to commission a report to underline why wholesale is critical to the UK.
With economic growth cemented as the central mission for the UK Government, the report shows the full extent of the sector’s value to the UK economy. Wholesale distributors act as the backbone of the value chain, generating £33.6 billion in turnover, with £17.5 billion from sales to retailers and £13.4 billion from sales to foodservice providers. The sector indirectly supports around 1.2 million jobs and £33 billion of value added via these customers.
Wholesalers spent £27bn with their suppliers in 2023/24, supporting 250,000 jobs and contributing £18.6bn gross value added to the UK economy.
Overall the sector supports 1.5million value chain jobs in the UK, which is more than financial services. In total £57bn gross value added to the UK economy through food and drink wholesale activity upstream and downstream, which is more than the GDP of Northern Ireland.
But alongside these achievements the report identifies significant challenges facing the sector such as supply chain disruptions to rising costs and regulatory pressures as wholesalers navigate an increasingly complex environment.
Capital Economics convenience economy employment Foodservice FWD Government research suppliers wholesale
