Vegan, gluten-free, alcohol-free, and low-alcohol product categories are thriving. These shifts align with consumer health and lifestyle preferences, driving investments in specific niches. Meanwhile, traditional sectors like meat and dairy remain robust yet face a unique set of challenges, particularly in workforce recruitment.
Simultaneously, work models are undergoing adjustments. While remote roles are present, especially in document-heavy positions like specifications writing, health and safety and quality systems, there’s an increasing trend for businesses to encourage office-based or onsite collaboration.
This shift stems partly from economic pressures, as employers aim to enhance productivity and fairness across roles that inherently differ in flexibility.
Demand and skills challenges
Certain roles and skill sets are experiencing heightened demand across the nation. Entry-level positions in quality assurance and quality control (QA/QC) are critically sought after, particularly in large-scale, multi-site operations. Despite this demand, shortages persist, partly because these roles are not widely highlighted within the education system.
Efforts like webinars and partnerships with educational institutions aim to bridge this awareness gap, but results remain gradual. Additionally, professionals for specialised roles such as food technologists, skilled meat industry operatives (e.g., butchers), and middle-management quality and technical skills are in short supply.
The challenge is amplified in rural and coastal areas, where logistical hurdles like transportation and housing further deter jobseekers. For example, regions like Kent and East Anglia, rich in fresh produce operations, face recruitment difficulties due to their remote locations.
Meanwhile, employers in these regions are encouraged to be more flexible in job descriptions and training provisions. Rigid hiring criteria can prolong recruitment cycles, especially when the talent pool is limited. Forward-thinking companies are investing in training and promoting career growth to attract and retain professionals in a competitive market.
Economic influences and legislation
National economic factors, including inflation and the impending changes in minimum wage, will significantly impact the industry. Hourly wage earners, a large segment in food production, feel the most immediate effects of wage adjustments. These shifts compel businesses to reassess their operating models, sometimes adopting automation to maintain cost efficiency.
Visa policies have introduced further complexities. The raised salary threshold for visa sponsorship excludes many roles traditionally filled by international graduates. Employers face challenges retaining such workers after their two-year poststudy visas expire.
The industry has called for adjustments to these policies to better support sectors like food and FMCG, which rely heavily on diverse talent pools.
Regional insights and mobility
Recruitment challenges differ by region, with rural areas facing greater obstacles than urban centres like Manchester or Bristol. Rural businesses struggle with fewer transport options, making it harder for professionals, especially juniors and graduates, to access job sites.
Public transport limitations further exacerbate this issue, while rising costs of driving deter younger talent.
Despite these challenges, relocation remains common for higher-level roles. Employers often offer relocation packages to secure talent, demonstrating flexibility and an understanding of geographical disparities. These packages usually involve a one-time payment to offset moving costs, ranging from £5,000 to £10,000 depending on the move’s scope and distance.
For international hires, packages may be more substantial to cover additional complexities. However, professionals are becoming increasingly selective, factoring in cost of living and quality of life when considering such moves.
Salaries and benefits
Salaries in the food and FMCG sector have stabilised following a post-pandemic boom, where competitive bidding led to inflated compensation packages. Currently, salaries across roles and regions reflect consistent trends, with minimal disparity for similar positions nationwide.
While salaries remain the cornerstone of compensation, professionals now prioritise a broader array of benefits when evaluating roles.
Creative and comprehensive benefits packages have become a key asset in attracting and retaining talent. Traditional perks like bonuses, car allowances, and holiday entitlements remain popular, but there is increasing demand for offerings such as private medical coverage and mental health support. In light of NHS pressures, private healthcare benefits, often extending to their families, are especially valued by professionals.
Flexibility in work arrangements has emerged as another key must-offer when looking to attract and retain people in a company. Even in roles requiring on site presence, such as production management, employers who can offer occasional remote work or adjustable schedules gain a competitive edge.
Conversely, the absence of flexibility often leads professionals to rule out job opportunities outright.
Employers are also responding to shifting expectations around work-life balance and job security. Professionals seek roles where they feel valued and supported, beyond just financial incentives. Companies that invest in employee satisfaction through regular reviews, career development opportunities, and workplace culture improvements enjoy higher retention rates.
In the current climate, counteroffers are prevalent, with existing employers often raising salaries or enhancing benefits to retain key employees. To mitigate this risk, companies are encouraged to lead with their best offer during recruitment, ensuring applicants feel both valued and excited to join their teams.
The food and FMCG industry remains a promising sector for professionals, offering competitive salaries alongside meaningful career progression and robust benefits. For companies, adopting a holistic approach to compensation and workplace culture has never been more crucial.
Download your copy of the Reed Food and FMCG Salary Guide 2025 now.
