Growth Sector Briefing - Food and Drink



Growth Sector Briefing - Food and DrinkOffice of the Chief Economic Adviser17 December 2021Growth Sector DefinitionScotland’s food and drink industry was identified in Scotland’s Economic Strategy as one of the growth sectors in which Scotland can build on existing comparative advantage and increase productivity and growth. The Scottish food and drink industry spans the activities of agriculture, fishing & aquaculture, food manufacturing and drink manufacturing. The food and drink manufacturing sector is important to Scotland’s manufacturing workforce and accounts for a significant proportion of manufacturing exports. The production of Scotch whisky and other spirit drinks is of particular importance to Scotland. The agriculture industry provides input to the Scottish food and drink industry and, together with the fishing sector, is a major supplier of raw materials to the UK industry.The Food & Drink growth sector is defined by the Standard Industrial Classification (SIC) 2007 codes:01 – Crop and Animal Production, Hunting and Related Service Activities03 – Fishing and Aquaculture10 – Manufacture of Food Products11 – Manufacture of BeveragesPlease note that alternative Fishing and Aquaculture data are available from Marine Scotland here. Figures from that source are not directly comparable with those in the Growth Sector Statistics Database due to methodological differences.Key StatisticsRecent trends in GDP (2021 Q3)Updated December 2021, next update March 2022The latest GDP data show that output in the Food and Drink growth sector decreased by 3.0% in the most recent quarter, whereas output across the economy as a whole increased by 1.0%. Compared with the same quarter in the previous year, output in this sector increased by 4.8%, whereas output across the economy as a whole increased by 7.1%, comparing Q3 2021 to Q3 2020.Employment (2019)Updated December 2020, next update January 2022Employment in the Food and Drink growth sector stood at 122,000 in 2019, accounting for 4.7% of employment in Scotland and 14.1% of employment in Food and Drink across Great Britain. Employment in this sector remained constant over the latest year in Scotland.Employment across Scotland (2019)Updated December 2020, next update January 2022In 2019, employment in the Food and Drink growth sector was highest in Aberdeenshire (16,000) and Highland (13,000), which comprised 13.1% and 10.7% of employment in this sector respectively.Exports (2019)Updated November 2021, next update tbcTotal exports from the Food and Drink growth sector stood at ?11.7 billion in 2019, accounting for 13.4% of Scotland’s total exports. Exports from this sector increased by 2.2% over the year.Exports to the rest of the UK stood at ?4.4 billion in 2019 and accounted for 37.5% of total Food and Drink exports. International exports to the EU stood at ?2.8 billion (23.7%) and international exports to non-EU countries stood at ?4.5 billion (38.7%).Turnover/Gross Value Added (2019)Updated November 2021, next update June 2022In 2019, total turnover in the Food and Drink growth sector was ?15,020.7 million. Between 2018 and 2019, total turnover in this growth sector decreased by 0.6% in nominal terms.Gross Value Added for the Food and Drink growth sector totaled ?5,508.0 million in 2019, a decrease of 4.0% compared to 2018 (?5,734.6 million).Enterprises (2021)Updated December 2021, next update December 2022In March 2021, there were 17,450 registered enterprises operating in the Food and Drink growth sector, representing 9.8% of all registered business in Scotland. In 2021, 98.8% of Scottish Food and Drink registered enterprises were small (0-49 employees), accounting for 51.9% of employment in this sector, whilst large enterprises (250+ employees) accounted for 0.4% of registered enterprises but 34.6% of employment.The majority of enterprises in the Food and Drink sector were UK owned with their registered office address in Scotland (98.9%), accounting for 76.7% of sector employment in 2020. 0.7% of businesses were registered abroad, but they accounted for 15.8% of employment in this sector.Earnings (2020)Updated December 2020, next update January 2022Median weekly full time earnings across the Scottish Food and Drink growth sector stood at ?574.9 in 2020, which was lower than the Scottish average at ?592.7. Between 2019 and 2020, earnings in the Food and Drink growth sector increased by 8.6%.Research and Development (2020)Updated December 2021, next update December 2022Business Enterprise Research and Development (BERD) spending in the Food and Drink growth sector stood at ?25 million in 2020. Spending on Research and Development in this sector represented 1.8% of the total BERD spend in Scotland in 2020 (?1,437 million).Business Demography (2019)Updated March 2021, next update March 2022The number of registered business births (VAT/PAYE registrations) in the Food and Drink growth sector in Scotland increased by 11.1%, from 135 in 2018 to 150 in 2019. The business birth rate, which is the number of births as a percentage of active businesses, was 11.7%. In comparison, business births in Food and Drink across the UK increased by 5.2% between 2018 and 2019, with a birth rate of 12.8%.The number of business deaths (VAT/PAYE de-registrations) in the Food and Drink growth sector in Scotland increased by 15.8%, from 95 in 2018 to 110 in 2019. The business death rate, which is the number of deaths as a percentage of active businesses, was 8.6%. In comparison, business deaths in Food and Drink across the UK increased by 5.3% between 2018 and 2019, with a death rate of 9.5%.The Scottish five-year survival rate for Food and Drink businesses born (registered) in 2014 and still active in 2019 was 45.8%, compared to 47.1% for the UK. The latest Scottish one-year survival rate, for businesses born in 2018 and still active in 2019 was 88.9%, compared to 87.9% in the UK.Sources of informationGDP – Scottish Government Quarterly GDP Index.Employment – Business Register and Employment Survey.Exports – Export Statistics Scotland.Turnover & GVA - Scottish Annual Business Statistics for food and drink manufacturing and fishing; Agriculture Census for agriculture sub-sector.Enterprises – Inter Departmental Business Register.Earnings – Annual Survey of Hours & Earnings.Research and Development – Business Enterprise Research and Development survey.Business Demography - Inter Departmental Business Register and ONS Business Demography.All data are available from the Growth Sector Statistics Database: percentages and percentage changes over time are calculated based on the rounded figures shown in the Growth Sector Statistics Database.For more information about the methodology behind the Growth Sector Statistics Database, please see the Methodology Note: ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download