As the second largest economy in Europe and the sixth largest in the world, the United Kingdom (UK) presents significant opportunities for Malaysian exporters. In 2023, Malaysia's total F&B exports to the United Kingdom were valued at USD 60.8 million, with miscellaneous edible food preparations as the main export category. With a liberal market economy, pro-business government policies, a stable and open market, and a strong focus on innovation and technology, the UK is a favourable environment for international trade.

Prior to exporting to the UK, Malaysian exporters should assess whether it is the right market for their product. Matrade recommends conducting a physical visit to the market to evaluate demand, identify potential partners and observe the strategies of competitors within the market segment. It is also important to research the relevant regulations that may impact market entry.

The UK will officially join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on 15 December, marking the first free trade agreement between the UK and Malaysia. Once it’s enforced, the agreement will eliminate 94 percent of tariffs between the two countries, with full tariff elimination expected by 2034. This will boost the UK’s exports to Malaysia, such as chocolate and cars, while also opening the UK market to Malaysian commodities like palm oil, rubber and timber. By 15 December, the majority of products will be able to enter the UK market with zero tariffs. With the UK's entry, the CPTPP now spans 12 countries across five continents, which includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore, and Vietnam.

When exporting food and beverage (F&B) products to the UK, Malaysian exporters must be aware of the regulations applied to specific products and general rules on labelling and additives. All imported goods must comply with strict laws on contaminants that have been put in place to protect public health. Any product that fails to meet their safety standards will be denied entry into the UK.

The UK also has restrictions on additives permitted in jelly confectionery due to choking hazards. The use of E425 konjac in jelly products and the sale of such confectionery, is prohibited. Another import restriction is the ban on kava kava, a traditional herbal remedy used for anxiety, due to concerns over its potential toxic effects on the liver. There are also strict regulations regarding illegal dyes in spices and palm oil. Spices such as dried chili, chili powder, curry powder, and palm oil are at risk of contamination with illegal dyes, and if dye levels exceed 0.5 parts per million, the products will be rejected.

Exporters must comply with various labelling and marketing standards when importing or exporting items such as plant seeds, food and manufactured goods. If any of the 14 specific allergens, including celery, cereals containing gluten, crustaceans, eggs, fish, lupin, milk, molasses, mustard and tree nuts, are present in the product, they must be clearly labelled. Additionally, exporters should take note that the cost of doing business in the UK can vary depending on the size and category of exports. Key factors include insurance and freight, logistics and clearance, importer distributor margins, retailer margins and retailing and promotional investments.

Current F&B trends in the UK has shown a shift towards healthier and more sustainable options. The demand for plant-based and vegan foods continues to rise, with more plant-based alternatives, dairy-free products and vegan restaurant choices becoming widely available. Consumers have also been reducing their meat consumption for health, environmental and ethical reasons. Sustainability remains a key focus, as brands prioritise eco-friendly practices and strive to reduce food waste. Moreover, there’s a rising interest in health and wellness, such as functional foods, superfood and products with added health benefits such as probiotics, adaptogens, and low-sugar options.

In addition, global cuisine and fusion flavours are growing in popularity, especially in cities like London, which is a melting pot of diverse cultures. This has contributed to the popularity of street food markets and food trucks, which offers a wide variety of international and speciality dishes. The pandemic has also heightened the demand for immune-boosting foods, including vitamin-rich fruits, vegetables and herbal teas. Finally, zero waste and the circular economy is an important trend as well, with growing efforts to repurpose food waste into new products.

For enquiries, please contact:

MATRADE London
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References
MATRADE Webinar (Exporting F&B Products To The UK Through Unisnacks Europe Limited)