British berry growers are bracing for a challenging year in 2025 as rising energy costs, wage increases, and insufficient returns from retailers put pressure on the sector. Despite these challenges, the British berry market has reached a significant milestone, with a total market value of £2 billion for the first time, according to British Berry Growers, the industry body representing 95% of British berries sold in the UK.
The berry market's growth has been driven by rising consumer demand, with sales volumes increasing by 4.3% in the past year. Market penetration has also reached 85.3%, highlighting the widespread popularity of British berries. Since 2015, when the market first hit £1 billion, the sector has doubled in value, achieving nearly a decade of consistent growth.
In the past year, the average year-round price of berries rose by 6.9%, contributing to the industry's overall value growth. Additionally, a report by EY commissioned by British Berry Growers revealed that the industry contributed £624 million to the UK economy in 2023, supported £134 million in taxes, and created 16,317 full-time equivalent (FTE) jobs.
Despite these achievements, the sector's future is under threat due to mounting production costs and slowing growth rates. The Compound Annual Growth Rate (CAGR) for berry sales volume has dropped from 7.8% between 2012 and 2019 to just 1.3% between 2019 and 2023.
Production costs have risen sharply, with energy costs and wage increases being key factors. Between 2016 and 2024, the National Living Wage rose by 59%, placing significant financial strain on this labor-intensive industry. According to the EY report, 71% of growers experienced operating cost increases of over 20% between 2020 and 2023, while 85% of growers reported that their revenue returns did not keep pace with these rising costs.
Retailer pricing practices have also contributed to the problem. While the average retail price of berries increased by 14.5% between 2020 and 2023, the prices paid to growers rose by only 11.2%, insufficient to cover average non-wage operating cost increases of 37%.
Another concern for British growers is the growing volume of imported berries. While the UK berry market continues to expand, the share of British berries has decreased by 2.54%, with imported berry volumes increasing by 15.11%. This competition adds further pressure on British growers to remain competitive.
Nick Marston, chairman of British Berry Growers, emphasized the urgent need for collaboration among retailers, policymakers, and industry stakeholders. He stated:
"As we start 2025, it is clear that collaborative action is essential to ensure the survival and continued growth of the British berry industry. Retailers, policymakers, and industry stakeholders must come together to support British growers through fairer pricing and extended access to a seasonal workforce, ensuring the future of one of the UK's most important agricultural sectors."
Marston also highlighted the critical role of retailers in addressing the sector's challenges, particularly in offering fairer pricing to growers to help sustain and expand production in response to rising consumer demand.
For more information:
British Berry Growers
Tel: +44 07966 521779
Email: [email protected]
www.britishberrygrowers.org.uk