FWD highlights value of UK wholesale industry to food minister

UK food and drink wholesale distributors collectively had a turnover of nearly £34 billion in 2023/24 and provided direct employment for 77,000 people, with 5,000 jobs supported in every region of the UK.

Food minister Daniel Zeichner (left) with FWD CEO James Bielby.

The hard-hitting figures, which are published in a report called Going for Growth by Capital Economics, highlight the integral role that food and drink wholesalers play in the UK’s economy.

The FWD, which commissioned the report, presented the findings to minister for food security and rural affairs Daniel Zeichner, other MPs, and senior wholesalers and suppliers in the Houses of Parliament on 4 February.

Including the activity supported in their supply chains, and the retail and foodservice businesses that they serve, wholesalers support around 1.5 million jobs. In total, wholesalers directly contributed £3.5 billion to national output in terms of gross value added.

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 in these downstream industries.

Wholesalers spent £27 billion with their suppliers in 2023/24, supporting 250,000 jobs and contributing £18.6 billion gross value added to the UK economy. Overall, the sector supports 1.5 million value chain jobs in the UK, which is more than financial services. In total £57 billion gross value is added to the UK economy through food and drink wholesale activity upstream and downstream, which is more than the GDP of Northern Ireland.

Addressing guests at the launch of the report, Zeichner said: “This report highlights just how important the wholesale sector is. These are really significant numbers. Economic growth is absolutely central to wholesale businesses, as is breaking down the barriers to opportunity. Our pledge to you is to work with you as we begin to develop our policies. Our stated goal is to try and help change the way the supply chain operates to make sure there is a fair distribution of resources through the supply chain, and I really look forward to working with the wholesale sector on this.”

The report also identifies some of the challenges and opportunities wholesalers face such as increased transport costs, labour shortages and navigating the path to net zero.

FWD head of external affairs Lyndsey Cambridge commented: “Wholesalers are the lifeblood of the nation – from supporting high street restaurants to supplying hospitals, schools and local retailers with food, the FWD membership is delivering for people across the length and breadth of the UK. This groundbreaking research provides a comprehensive economic impact of food and drink wholesale, demonstrating the value and importance of the sector in improving consumer choice through its support for retailers and caterers.

“Given its reach and contribution, our sector has and will play a pivotal role in driving economic growth in the coming years. We look forward to partnering with policymakers across the UK to grow our industry further while meeting the everyday challenges our members face in areas such as increased transport costs and labour shortages.”