Producers Urged to Rethink Growth Strategies in Challenging Markets at Insight to Impact Event for Scotland's Food and Drink Sector

• Economic pressures continue to bite, however changing demographics, consumption behaviour and forward-thinking operators offer many opportunities.
• Value remains key for consumers – price is important, but not at the cost of quality.
• Rapid increase in GLP-1 adoption impacting consumption habits, with c5% of UK consumers claiming to have used this medication for weight loss in recent times. (Source, IGD)

Industry leaders and producers gathered at the recent Insight to Impact event, hosted in Edinburgh by Scotland Food & Drink, in conjunction with The Knowledge Bank and The Academy, to explore practical strategies for unlocking growth in an increasingly challenging market environment.

With economic pressures, shifting customer expectations, and heightened competition reshaping the landscape, the event focused on helping producers move beyond traditional approaches and adopt more adaptive, insight-driven strategies. Four key channels were explored (Grocery, Convenience, Foodservice (Travel & Leisure) and Foodservice (Contract Catering & Events), with areas of opportunity identified through a unique combination of a fantastic line up of insight experts and key industry operators.

A key theme was the impact of changing demographics, with new shopper groups creating fresh opportunities for producers who can adapt their propositions. With 32% of households forecast to be single person by 2030, producers were urged to think about this within their pack and portion size strategies for the year ahead. In parallel, value remains critical, but not at the expense of quality. Consumers are increasingly seeking products that deliver strong quality at a fair price, reinforcing the need for clear, compelling value propositions.

At the same time, speakers highlighted that experiential socialising has firmly established itself as a long-term trend, opening opportunities for brands to connect through occasions and experiences rather than just products.

Younger consumers are playing a defining role in shaping demand. Gen Z’s preference for premium convenience, paired with a growing trend for on-the-move consumption, is driving demand for formats and solutions that fit seamlessly into fast-paced lifestyles.

Health & Wellbeing was clearly highlighted throughout the day as the area of growth for Scottish producers, with the brand new “Voice of the Scottish Consumer” tracker from The Knowledge Bank identifying that 2 out of 3 Scots claim to “eat healthily and do physical exercise at least twice a week”.  Add into that the increasing rise of GLP-1 adapted diets in Scotland and the UK and a commensurate rise in retail new product development and hospitality small portion meals, new opportunities exist across many important Scottish food and drink categories.

In-store execution and presence on menus remains critical. Producers were encouraged to focus on driving footfall and clearly demonstrating incrementality to retail and foodservice partners. The smart use of operator media is becoming an increasingly powerful lever in this space, enabling more targeted and measurable impact.

Looking ahead, the event also spotlighted the imminent introduction of HFSS (High Fat, Sugar and Salt) regulations in Scotland, following their rollout in England, with discussion centred on the Scottish Government’s recent announcement. Attendees explored the likely impact on shopper baskets, including shifts in purchasing behaviour and category performance as restrictions take effect. Crucially, the session provided clear, practical guidance for producers, outlining the support available to help reformulate products and adapt portfolios in line with the new requirements, ensuring they remain competitive in a more regulated environment.

The overarching message from the event was clear - growth is still achievable, but it requires producers to be sharper, more agile, and more aligned to how consumers are living and shopping today.

Carol Saunders, Head of Insights at Scotland Food & Drink said:

"It was fantastic to welcome such a diverse range of producers and suppliers from across Scotland to the event and see them engage with the exclusive insights shared by our speakers. While we all know it’s a challenging time for businesses, the discussions highlighted that the sector continues to evolve, and that shifting consumer tastes and habits are creating exciting opportunities for businesses of all sizes."