There are approximately 500,000 employees in the UK Improve food and drink manufacturing sector, which accounts for 1 in 7 total manufacturing jobs.  Total employment in the sector is forecast to fall about 10% over the next 10 years, by about 45,000 workers.  The bakery industry employs the largest proportion of individuals, followed by other food and the meat industry.

Employment levels in the sector have been in decline with an estimated 26,000 jobs lost between 1992-2002.  Further decreases in employment numbers are expected by 2012 of between 36,000 to 47,000.  However, the South West and the East Midlands have increased employment in the sector.  The replacement demand between 2004-2014 is predicted to be 118,000 employees.

Workers in the industry are mainly full-time employees (86%) with an increasing share of full-time jobs.  By 2014, 95% of workers are forecast to be in full-time employment in this sector.  Part-time employment is expected to decrease from 11% in 2004 and 3% in 2014.  Self-employment is very uncommon in this sector – only around 3% of all in employment are self-employed. This is expected to decrease to 2% in 2014.  Future trends in the increasing number of male full-time employment and falling female part-time employment will continue.

In the UK, there are around 9,000 food and drink manufacturing enterprises, 6,035 are in England.  76% of the UK’s food and drink manufacturing enterprises are in England.  The majority of the workforce (66%) is employed in establishments with 5-24 employees. 94% of sector businesses employ less than 200 individuals.

Within all sector establishments manufacturing has fewer micro-establishments (1-4 employees) than the rest and correspondingly larger establishments. 

Source: Skills Needs Analysis (volume 1) 2006, Improve Skills Needs Analysis (volume 2) 2006, Improve website 2006, Data provided by Improve (using ONS) 2006, Working Futures 2006, At a Glance – England 2005, Improve Market Assessment 2004 and SSDA 2004

Source: Skills Needs Analysis (volume 1) 2006, figures 3.8 and 3.10.  Data from ONS  Inter-departmental Business Register (2004) and the Annual Business Inquiry (2003).

Note: ‘Other food’ includes: biscuits; sugar; confectionary; pasta and noodles; tea and coffee; condiments; homogenised and dietetic food; and all other food not classified elsewhere.

For more data on employment levels and employment status of the sector workforce see:

Employment and organisation numbers differ within the industries.  In milling and starches, there are on average more than 150 employees within each enterprise.  Low employment levels are in oils and fats, where on average there are only 30 employees in every enterprise.

The largest industries in terms of employment include:

• bakery – bread, fresh pastry goods and cakes (76,140 employees)
• production, processing and preserving of meat (69,509 employees)

Source: At a Glance – England 2005 and Improve Market Assessment 2004

For more in-depth information on the industries in the food and drink sector see:

In England, 35% of sector employers report vacancies; 8% of which are hard-to-fill. 9% of employers report skills shortage vacancies.  The East Midlands, East of England and the South West appear to have more skills shortage vacancies than the national average. Skill gaps vary greatly by industry.  Industries that require specialist craft skills, such as butchery or bakery, are more affected by skills shortages than those requiring more general skills.

38% of employers in England identified skill gaps amongst their existing workforce.  The leading causes of skills gaps amongst the workforce are:

• lack of experience
• lack of motivation
• a failure to train and develop staff

Across the UK nations there are significant variations in vacancies and recruitment issues:

• in Wales – 26% of employers report vacancies, 11% are hard-to-fill and 3% are skills shortage vacancies
• in Scotland – 26% report vacancies, 10% are hard-to-fill and 2% are skills shortage vacancies
• in Northern Ireland – 18% report vacancies, 24% are hard-to-fill and 7% are skills shortage vacancies

Hard-to-fill vacancies are the result of:

• a lack of quality applicants and few with the required skills
• fewer young people studying sciences
• poor image of the sector and profession

The skills that are most difficult to obtain from job applicants are:

• technical/practical skills
• communications skills
• team working skills
• customer handling skills

Source: Improve Skills Needs Analysis (volume 2) 2006, At a Glance – England 2005 and Improve Market Assessment 2004

There have been major changes in the pattern of consumer demands over the last three decades as customers have become increasingly demanding.  Changing lifestyles and higher standards of living have led to a demand for more convenience and specialist foods.   Improve's Skills Needs Analysis identifies four key drivers of change, including:

1. Consumer Change
2. Technology
3. Globalisation
4. Regulation

Future drivers of change in the sector include:

• major expansion in the market for ethnic foods
• general growth in demand for convenience foods, such as pre-prepared meals and snack products
• general growth in demand for specialist and luxury foods
• general growth in demand for fresher products
• a demand for longer shelf life

Globalisation, new technologies and Government intervention and regulation also play a key role in changing the sector.

Issues that need to be addressed by the sector in the future include:

• increasing industry awareness at school
• increasing flexibility in the workplace
• introducing conversion degrees to fill skill deficiencies at  technical/scientific levels

Source: Improve’s Skills Needs Analysis (volume 1) 2006, Improve Skills Needs Analysis (volume 2) 2006 and Improve Market Assessment 2004