37% Food Price Rise: Tackling Material Wastage with Better Tracking and Control Across Food and Drink Manufacturing

Between January 2020 and July 2025, UK food and non-alcoholic drink prices rose by 37%, outpacing the 28% increase in overall UK prices. This marks one of the sharpest periods of inflation in decades, with the five-year average running at more than double the rate seen between 1990 and 2010.

Such sustained inflation has reshaped the economic landscape for both consumers and manufacturers, forcing the food and drink sector to adapt under unprecedented cost pressures.

Rising Costs and Industry Resilience

Over recent years, food manufacturers have shouldered much of the burden of rising costs to protect shoppers from steeper price hikes at the tills. However, with average production costs up 6.3% last year—well above the rate of inflation—many have reached the limits of what they can absorb.

The result is now evident on supermarket shelves. Households are spending £70.50 a week on food and drink, nearly double the £38.50 spent on energy, highlighting how essential yet increasingly expensive this area of spending has become (Food and Drink Federation).

For UK food and drink manufacturers, one of the largest cost drivers remains the price of ingredients and commodities. And these costs don’t exist in isolation—they’re closely tied to wider global events and supply chain disruptions.

The Impact of Global Events on Raw Materials

A major contributor to these increases has been the volatility in raw material prices. The combined effects of the Covid-19 pandemic and the war in Ukraine disrupted global supply chains, reducing the availability of key ingredients and driving up costs.

Compounding the issue, Brexit introduced new trade barriers and administrative costs, particularly affecting imports and exports. With 42% of the food consumed in the UK imported, even minor disruptions have had significant ripple effects.

Some of the steepest price increases between January 2020 and July 2025 include:

These escalating costs underscore a key challenge for manufacturers: while external pressures such as global conflict, pandemics, and trade barriers may be beyond their control, how efficiently they operate within the factory is not.

From Rising Costs to Real-Time Control

With the rising costs of materials, increased efficiency and precision have become essential for maintaining profitability and competitiveness. Harford Control’s solutions help manufacturers minimise waste, enhance traceability, and ensure consistent quality—directly addressing the root causes of cost escalation that remain under manufacturing control

• Weight and Volume Control: Avoid overfill and giveaway in materials, improving yield and reducing waste.
• Material Tracking and Traceability: Maintain full visibility of materials through every stage of production, ensuring compliance and accountability whilst avoiding the dreaded LIFO (Last In First Out).
• Laboratory Information Management System (LIMS): Digitally manage testing, results, and quality data to improve responsiveness and reliability.
• Paperless Quality: Streamline quality checks and documentation, reducing administrative overhead and error, identifying and fixing problems earlier.

By integrating these systems, manufacturers can reduce material waste, ensure consistent quality, and gain real-time visibility across every stage of production. This connected approach not only improves efficiency and compliance but also supports data-driven decision-making that leads to lasting operational and financial gains.

Unlocking a £14 Billion Growth Opportunity

Despite the challenges, the Food and Drink Federation identifies a £14 billion growth opportunity for the UK’s food and drink manufacturing sector. To realise this potential, the industry must continue to invest in automation and digital transformation—key enablers of efficiency, quality, and long-term resilience.

This opportunity was clearly reflected at this year’s PPMA Show, where we were thrilled by the level of interest in digital manufacturing solutions. It’s encouraging to see more manufacturers recognising that success will come to those who view technology not as a cost, but as a strategic investment in stability and growth.

With over 55 years experience, Harford Control is the market-leading provider of Manufacturing Execution Systems (MES)—helping manufacturers achieve higher efficiency, improved quality, and complete compliance.

Contact Harford today to start your digital transformation journey. Contact Harford today to start your digital transformation journey. Email us at sales@harfordcontrol.com or call us on +44 (0)1225 764461.