Beverage manufacturing uptick in the UK
The recent performance of the beverage sector reflects impressive momentum, including a notable 113% increase in profitability in Q4 and a 1% year-on-year growth. Several factors may explain this uptick.
One contributing reason could be the uncertainty in international markets, particularly regarding tariffs or the possibility of new trade restrictions. This environment has encouraged many customers to source products closer to home. In response, some businesses have accelerated orders to avoid potential disruptions linked to fluctuating trade conditions.
Moreover, the gradual reduction in bank interest rates is beginning to show positive effects, helping to stimulate economic activity across sectors. For the beverage industry specifically, the strong performance might also be linked to seasonal patterns, with Q1 traditionally being a robust quarter.
These insights come from data compiled by Unleashed, a cloud-based inventory management software provider. Through its Manufacturing Health Index, Unleashed compares multiple industries — including electronics, telecoms, entertainment, and industrial machinery — drawing from a dataset of over 600 UK-based manufacturers.
In the beverage category, most businesses covered in the report are small, independent brands with between 2 to 25 employees and typically generating less than £4 million ($5.42 million) in annual revenue.
Greg Roughan, Content Manager at Unleashed, noted that pinpointing the exact cause of Q1’s strong results is difficult due to the variety of business models in the category. However, it's likely influenced by factors such as year-end deals being finalized in January, and distributors preparing for the summer season.
More significantly, the data highlights a broader trend of recovery and growth. Average sales per beverage manufacturer increased from £874,000 (Q2 2023–Q1 2024) to £1.249 million (Q2 2024–Q1 2025) — a 43% rise in just one year.
Source: Beveragedaily.com
