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Booming Food and Drink Sector in North East Scotland | ONE

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Food, Drink & Agriculture
Posted: 28 June 2024
Booming Food and Drink Sector in North East Scotland

Food manufacturing and production are thriving in Scotland, particularly in the north east. This region is a powerhouse of farm and fishery-to-fork supply chains and home to global brands and ambitious startups. It plays a crucial role in the national industry output and is poised for even greater achievements.

According to the Food & Drink Federation Scotland, the food and drink industry is the country's largest manufacturing sector, accounting for 29% of total manufacturing turnover, 27% of manufacturing value added, and 26% of the Scottish manufacturing workforce - some 44,000 people. Nationally, nearly 1,300 food and drink manufacturing businesses generate an annual turnover approaching £11 billion, with exports in 2023 worth £6.7 billion. The industry also faces a pressing need for new talent, with an estimated 7,000 recruits required in food manufacturing alone by 2033.

The numbers are equally impressive at the regional level, underscoring the sector's vital role in the economy now and in the future.

The North east of Scotland sector adds value through manufacturing and processing but also spans agriculture and seafood, essential pillars of the economy. Peterhead is Europe's largest whitefish port, and Fraserburgh is Scotland's largest shellfish port. The seafood processing sector contributes £700 million to the North East's food and drink turnover and supports over 4,000 jobs. The region also produces and processes significant amounts of meat and arable crops, including 70% of Scotland's pork and 40% of its lamb, 30% of its cereals and rapeseed, and malts 60% of its barley, a key ingredient for Scotch whisky.

"Food and drink is the North East's largest industry after energy, supports 22,000 jobs and annual turnover of £2.4 billion, and is growing three times faster than in the rest of Scotland," explains Stanley Morrice MBE, vice chair of Opportunity North East (ONE) and chair of its food, drink, and agriculture board.

“The region's ambition is to grow by 5% per annum to 2030, driven by action and investment in market development, productivity, and innovation.”

In partnership with the public sector and industry bodies like Scotland Food & Drink, ONE has already enabled businesses to grow and has developed and piloted industry support projects before a national rollout.

Given its strengths, the food and drink sector is poised to play a critical role in the region's future economy.

"Over the past eight years, ONE has boosted sector growth with its funding and resources, building a team of specialists to support startups and scaling businesses with entrepreneurship, innovation, leadership, and market development,” explains Mr Morrice. “The creation of ONE SeedPod adds a new dimension. Offering in-demand commercial, manufacturing and innovation space alongside our comprehensive sector support and providing a unique entrepreneurial environment unlike anything else in the UK."

There is a strong sense of community in the sector, and while SMEs dominate, accounting for 96% of the industry across Scotland, there is significant scope to create and scale innovative, high-growth businesses.

“Our aim is to continue to grow the sector through entrepreneurship by inspiring, challenging, and supporting the ambitions of business leaders," says Mr. Morrice.

"I've worked in the sector all my life and know people's passion for food and drink. Producers, manufacturers, and the wider supply chain are a vibrant community," said Mr. Morrice. “I’m very confident about what we can achieve together.

"There are entrepreneurs and leaders who've succeeded at home and internationally. They now have access to support to take their businesses to the next level if they choose to. We are also equipping the next generation of founders with the entrepreneurial skills, tools, insights and mentoring to help them understand their customers, develop successful products and scale quickly. Could a new BrewDog emerge from this ecosystem in the next five years? I believe so."

Confidence and ambition are key to the sector's success. Mr. Morrice concludes with a simple call to action from ONE: "Continue working together and with us to expand your customer base and champion food, drink, agriculture, and seafood—a vital industry for this region's future. In five to ten years, I want the industry to be recognised as a high-value manufacturing sector—dynamic, innovative, and producing the healthy, premium, sustainable products consumers demand."

ONE Transformational Projects Seafood Transformation 01
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