Welsh food and drink industry grows by 10%

Businesses in the sector had a total turnover of £24.6bn in 2023, compared to £22.3bn in 2022.

The statistics are for the food and drink supply chain, which contains manufacturing and packaging, agriculture and fishing, retail and wholesale, and non-residential catering.

The number of businesses increased by 1%, to 28,768 in 2023. The food and drink supply chain employed 228,500 people in Wales in 2023, equivalent to 17% of Wales’ total workforce.

The Welsh Government set a target to grow the value of the ‘food foundation’ sector to at least £8.5 billion by 2025. The sector includes businesses that produce, process, manufacture and wholesale food and drink goods, some of which receive direct support from Food and Drink Wales. The sector had a turnover of £9.3bn in 2023, with the £8.5bn target being reached two years early.

The statistics have been published alongside Food Matters: Wales by the First Minister and Cabinet Secretary for Climate Change at the Royal Welsh Show today.

Food Matters: Wales has been produced to bring together the Welsh Government’s food-related policies into one document. It brings together policies which directly support the agri-food industry and natural resource management, and wider food-related policies across health, education, sustainability, communities and the economy.

First Minister Vaughan Gething said:

“Our food industry is at the heart of our lives, our communities and our nation. We must support the sector to cultivate a more self-sufficient Wales, where we champion sustainability and foster a robust local element to the food system and supply chains.

“I’m really pleased to see that, thanks to the ambition, innovation and hard work of the Welsh food and drink industry, and despite the challenging macroeconomic climate, the supply chain has continued to grow. I’m especially pleased to see the growth in our foundation food sector, which is at the grassroots of our burgeoning food and drink economy.”

Cabinet Secretary for Climate Change and Rural Affairs, Huw Irranca-Davies, said:

“Welsh food and drink is a real success story and its economic contribution to the Welsh Economy is higher than ever.

“This success creates the wealth that underpins the development of our vital agri-food industry.

“Food Matters: Wales is the first document of its kind and outlines the range of policies which provide an integrated approach to supporting the growth of the industry. It brings home how food connects so many policy areas – health, the environment, the economy, prosperity, and our sense of place and community, here in Wales.

“We have now passed the economic target we set ourselves by 2025 and we can truly say Wales is a Food Nation and this is a real partnership success.”