**London**: The UK food sector faces mounting pressures from rising labour costs and population growth, prompting calls for urgent investment in AI and robotics to enhance production resilience. Management skill shortages threaten to delay digital adoption, risking the sector’s future sustainability and efficiency.
A recent report titled ‘How to respond to rising labour costs in 2025’ has highlighted the urgent need for the food industry to invest in artificial intelligence (AI) and robotics in order to bolster the resilience of the food production system in the face of growing challenges. The publication, Food Manufacture, emphasises that mounting labour costs, climate change, tariffs, and an anticipated increase in global population are intensifying pressures on the food system, necessitating significant changes in production and distribution methods.
According to projections, the UK population is set to rise by 7 million over the next 20 years, leading to concerns that current food production methodologies will fall short of meeting consumer demand. The report underscores that while the technology to enhance efficiency already exists, businesses in the sector need to adopt a long-term commitment to transformative practices.
Since 1980, the UK population has grown by 13 million, yet the food and drink manufacturing workforce has decreased by approximately 200,000 people. As the IGD highlights, this indicates a shift towards greater labour efficiency; each worker now serves 167 people, compared to just 91 in 1980. Despite this evolution, the report notes that more significant shifts are required to ensure the industry can meet future challenges.
Toby Pickard, a senior partner at retail futures, remarked on the pivotal moment for the food sector, stating, “The food industry is at a critical juncture. By leveraging technology and innovative solutions, we can transform the sector, ensuring sustainability and growth. It’s not just about reducing headcount; it’s about creating a resilient and efficient food system that can weather these challenges and emerge stronger.”
The IGD report characterises the shift towards increased automation in food manufacturing as an essential measure rather than a mere luxury. It emphasises the necessity for strategic resilience, innovation, and collaboration throughout the food system to adapt effectively to these pressures.
However, challenges remain. The managing director at consumer and business analyst firm Mindmetre noted that a scarcity of management skills is hindering food and drink manufacturers from making the necessary investments in digitalisation. This gap in expertise could pose an obstacle to the innovative practices required for the sector’s evolution and competitiveness.
As the food industry contends with these complex dynamics, the emphasis on technological investment and improved management will be critical to navigating the future landscape of food production in the UK and beyond.
Source: Noah Wire Services
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