Why Is Food Expensive In The UK?

Rising living costs are affecting us all, but one question remains especially worrying for many – why is food so expensive in the UK? From local supermarkets to high-street takeaways, food prices are higher than ever. Understanding what’s driving these costs can help make sense of the tough decisions families across the UK face every day, from skipping meals to stretching limited budgets. These rising prices are also contributing to increased reliance on food banks, which are seeing record levels of demand.

Inflation and Economic Pressures

One of the most significant reasons behind the rising cost of food is inflation. Inflation tracks how quickly the prices of goods and services rise over time. In March 2023, food inflation reached a staggering 19.1% – a level not seen since 1977. Although recent figures show inflation may be slowing down slightly, the reality for most households is that prices remain stubbornly high.

This general increase in prices doesn’t just apply to luxury items. It affects essentials such as milk, eggs, bread, pasta, and baby food. When inflation affects food, it hits low-income families the hardest because a larger proportion of their income goes toward groceries. As the cost of energy also rises, cooking and refrigerating food becomes more expensive, creating a cycle of financial strain that makes everyday living increasingly difficult.

Supply Chain Disruptions

The UK depends heavily on imports for its food – around 46% of it comes from overseas. When borders become harder to cross or paperwork becomes more complicated, the cost of importing goods goes up. Since Brexit, new trade barriers and customs checks have added delays and expenses to food imports. Perishable items like fruit and vegetables suffer the most, as delays can lead to spoilage and waste. For instance, delays in importing fresh produce from Europe have caused visible shortages on supermarket shelves during peak periods.

Added to this are global supply chain shocks, such as the ongoing war in Ukraine, which has caused a ripple effect on the availability and price of key agricultural goods. Ukraine and Russia are major suppliers of wheat, sunflower oil, and fertiliser. Disruptions in their supply chains have pushed global prices higher, and the UK is not immune.

When transport becomes slower and more expensive, and when key goods become scarce, it inevitably results in price hikes at the checkout. Consumers see this reflected in their shopping baskets, particularly on items that were once affordable staples.

Higher Production Costs

Farmers and food producers are seeing their costs skyrocket. Everything from diesel for machinery to heating for greenhouses now costs more. This rise is largely due to energy price hikes, fuelled by global conflict and unstable markets. Producers who rely on electricity, gas, and fuel are seeing bills that are two or three times what they used to be.

The cost of fertiliser and animal feed has also soared. Fertiliser, often imported or made from natural gas, has become significantly more expensive. This impacts everything from the price of potatoes to the cost of meat and dairy products. Farmers cannot afford to absorb these costs forever, and so they pass them on to buyers – who in turn pass them on to consumers.

Packaging and processing costs have also increased. Food needs to be stored, wrapped, transported, and displayed, and each stage is subject to rising costs. Cold storage, for example, is energy-intensive and has become far more expensive to maintain.

Labour Shortages

Brexit also impacted the availability of seasonal and low-wage workers, many of whom were previously EU nationals. These workers played a crucial role in food production, harvesting crops, processing meat, and working in warehouses. With fewer workers available, many employers have had to raise wages and improve conditions to attract British labour – which adds more pressure on overall costs.

The shortage isn’t limited to farms. Logistics companies are also struggling to find enough drivers, warehouse staff, and delivery workers. These shortages have led to inefficiencies and delays, increasing the time and money it takes to get food from fields to shelves. The end result is higher prices at the point of sale.

Reduced Competition

When there are fewer retailers and suppliers competing for customers, prices tend to go up. Over the past decade, many smaller food retailers have closed, unable to compete with the scale and buying power of large supermarket chains. This leaves less room for price variation, particularly in rural areas or low-income neighbourhoods.

In communities where only one or two supermarkets operate, consumers often have little choice but to pay the asking price, even if it’s higher than in more competitive areas. This reduced competition reinforces a cycle where affordability becomes increasingly out of reach for struggling households.

Online grocery options have expanded, but they often come with delivery charges or minimum spend requirements, making them inaccessible for many low-income households. The lack of truly affordable alternatives means people have little room to reduce their food spending.

Climate Change and Crop Failures

Extreme weather is becoming more frequent due to climate change, and it’s having a real impact on the cost of food. Droughts, floods, and heatwaves damage crops not only in the UK but across the globe. These events reduce the supply of fresh produce, grains, and animal feed, making those items more expensive.

For example, poor harvests in southern Europe and North Africa have led to shortages of tomatoes, lettuce, and peppers – common items in UK shopping baskets. Within the UK, erratic weather conditions have reduced yields for crops such as potatoes and carrots, further limiting supply and raising prices.

Unpredictable weather also makes farming more expensive. Farmers may need to invest in irrigation systems, pest control, and greenhouse protection, all of which cost money and add to the final price of food.

Government Policy and Subsidies

UK government policies can either support or hinder food affordability. In many other countries, subsidies help farmers cover the cost of production and ensure food prices stay low for consumers. In the UK, support has been patchy and often slow to respond to economic shocks or environmental issues.

Some farming subsidies were lost or changed after leaving the EU, and the new support schemes have yet to fully replace them. Meanwhile, taxes and tariffs on imported goods, along with a lack of targeted support for vulnerable households, contribute to rising food costs.

The government has taken steps to offer cost of living payments and temporary support, but many campaigners argue that these measures are not enough to match the scale of the crisis. The need for structural changes in food policy remains urgent.

Why is food so expensive in the UK?

Food prices in the UK are high due to a complex mix of issues: inflation, Brexit-related trade complications, rising energy and production costs, labour shortages, reduced retail competition, climate-driven crop failures, and insufficient government support. Each of these factors puts pressure on household budgets, making it harder for people to access healthy, affordable food. For low-income families, especially those already relying on food banks, these challenges make day-to-day survival more difficult than ever. To tackle this crisis, coordinated action is needed – from government reforms and agricultural support to community-led food initiatives that increase access and reduce stigma.

The question why is food so expensive in the UK doesn’t have one simple answer. But by recognising the multiple causes, we can push for effective, long-term solutions to ensure food remains accessible and affordable for everyone.