Scotland’s food and drink sector has triumphed over adversity, setting a new record with an annual turnover of £19 billion for 2023. This milestone, unveiled at a Scotland Food & Drink reception in the Scottish Parliament on 18 November, confirms the industry’s status as an economic powerhouse that supports 123,000 jobs and sustains 17,000 businesses nationwide.
The impressive growth comes despite a daunting landscape marked by the lingering impacts of Brexit, ongoing global instability due to the war in Ukraine and the Middle East crisis, as well as recovery from the pandemic. According to the latest Scottish government figures, the industry’s Gross Value Added (GVA) has soared to £7 billion, reflecting not just robust domestic performance but also strong export demand, particularly in the red meat sector.
Inflation in energy and input costs has played a role in the revenue uplift, but so too has the sector’s resilience and adaptability. Scotland Food & Drink chief executive Iain Baxter applauded the industry’s achievements, yet tempered celebrations with caution. “Ordinarily we’d be toasting the success of industry growth, but with the new figures, we’re cautiously optimistic rather than celebratory,” Baxter remarked, highlighting persistent challenges such as high input costs, labour shortages, infrastructure deficits, and tough regulatory and sustainability demands.
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Export performance remains a standout, with red meat exports hitting a record £164 million after a 19% surge in sales of Scotch beef and lamb across Europe. EU markets remain crucial, capturing 98% of total revenues. More than 99% of beef and lamb export earnings were derived from European customers, and the EU represented 85% of fifth-quarter sales – underlining the continuing reliance on Europe for market stability and growth.
Looking forward, the sector’s newly released policy report, Levers for Growth and Sustainability, sets out practical recommendations to safeguard the industry’s future. With ambitions to foster conditions that drive not just further growth but also long-term sustainability, Scotland’s food and drink leaders are calling for coordinated investment and government support to help businesses thrive at home and compete globally.
Baxter summed up the industry’s outlook: “I’m proud of the way our businesses have met challenge after challenge and ensured that food and drink remains one of Scotland’s greatest success stories.”
