Food & drinks sector shows strong November growth

By Hamish Graham

Published: 16 January, 2025

The food and drinks sector was the largest contributor to the 0.1% growth seen in the overall services industry during November, according to the Office for National Statistics (ONS). The services industry itself was the largest contributor to growth in the British GDP during the month.

The ONS figures show the food and drinks sector saw 1.6% growth for the month which is a positive rebound after a tough October where output fell by 2%.

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Kate Nicholls, Chief Executive of UKHospitality, believes this shows how the food and drinks sector can lead the way for future growth: “Hospitality has been the engine behind economic growth in November. This clearly demonstrates the potential the sector has to help drive recovery and prosperity nationwide.

“It’s a timely reminder to the Government about why they should be looking to invest in and back hospitality businesses to help them deliver its growth agenda,” she said.

Despite the positive signs, incoming cost increases due in April to the tune of £3.4bn could hamper the sector’s forward momentum.

“It is already forcing businesses to abandon investment plans, freeze recruitment, cut hours and increase prices. We are urging the Chancellor to think again and to delay the changes to employer National Insurance Contributions. A pause will allow proper consultation with businesses and, crucially, enable businesses to continue on a path to growth," she said.

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