The UK’s Most Successful Food-and-Drink Startups

If you’re looking to start a food and drink business, the UK is a great place to do it. Many startups in the industry have gone on to not just survive, but flourish and become successful, household names.

In the UK, the food and drink sector is expected to grow by more than 10% by the end of the decade. There are also plenty of trends that are influencing the growth of many businesses and startups, including an interest in local sourcing, plant-based food, meal kits and healthy choices.

While costs in the industry continue to rise, which makes it a challenge for many businesses, trends are without doubt a blessing to others. But what are the most successful food businesses right now and what are they doing right?

We’ve analysed the top food and drink businesses from the Alantra Food and Beverage Fast 50 reports from the last five years to identify trends and determine what’s hot in food and drink. So, if you’re looking to make your dream a reality and finally launch your startup food business, this data could help you on your journey to see whether your idea is likely to be a hit.

We’ve also gathered insights from some food and drink experts to provide their views on what sets these businesses apart from their competitors.

Understanding the food and drink industry

Starting a food or drink business is tough. It’s no secret. In 2023, food and drink businesses accounted for 9% of all businesses that went into administration in the UK. When setting out on your entrepreneurial journey within the industry, you might have oodles of passion, experience, knowledge, skill and a killer idea. But, without insight into trends and leaning on the experience of success stories (and failures), you may be setting yourself up for a harder journey than it might otherwise be. Of course, starting any business is difficult, but having a full understanding of the industry ensures you have at least a little more chance than your competitors.

You might have a few food business ideas you’re excited to pursue, but learning more about the fastest-growing businesses can provide you with valuable information so you can have confidence that your startup will thrive.

To do this, there are several key areas to pay close attention to and be aware of:

●      Trends – Keeping an eye on trends allows you to see the types of food and drink businesses that are in demand and where there may be a gap in the market.

●      Benchmarking – You can compare your business to successful competitors and identify your strengths and weaknesses.

●      Scaling potential – Looking closely at how other businesses have grown gives you an idea of how to put together your own growth plan.

●      Industry knowledge – The ability to showcase your knowledge is a great way to attract potential investors.

●      Learning from success – Soaking up as much information as you can on the success of others helps you create a strong business plan.

The fastest-growing food and drink startups

More than four million people work in the food and drink industry in the UK and the industry contributes £38 billion towards the UK economy.

Trends come and go, but riding one can ensure booming success. In recent years, the sports nutrition market has experienced 27% growth as consumers become more interested in health, fitness and wellbeing.

Our data supports this trend, with 5 out of the top 10 fastest-growing food and drink businesses offering protein powders and supplements. While this shows that it’s a popular industry, it also shows that it’s competitive. That being said, if you’ve identified a gap in the market or you can do something that your competitors aren’t doing, you shouldn’t let that discourage you.

Let’s take a look at the fastest-growing food and drink startups and what they offer consumers. The dataset has also taken into account the number of monthly searches and their Instagram following, which has a major impact on brand awareness and sales.

Huel

Huel offers a range of nutritional meal replacement products that are convenient and affordable, which helps busy people maintain a healthy diet. Huel’s average two-year compound annual growth rate (CAGR) is 76%, which is a powerful metric for determining the success of a business. This means that investment has grown by an average of 76% per year over the two-year period. Not only that, every month there are, on average, 201,000 searches for the brand, and they have nearly 400,000 Instagram followers.

Nick Peel, Managing Director of Stokes Tea & Coffee, an established brand operating for more than 120 years as a coffee roaster with both hospitality and eCommerce entities, says: “Huel has really tapped into the convenience of their product, whilst providing the user with everything they need in terms of nutrition in one helping. Great for people on the go who may not have the time to cook a meal but still appreciate the health benefits of consuming what their body requires in order to function at its optimum level.”

“Huel also ticks the sustainable box as the product is plant based and has a long shelf life, therefore limiting waste which, owning and running several restaurants, is a major concern to me personally when I see the amount of food that can be wasted, despite extremely stringent measures to avoid this.”

Grenade

Grenade offers a range of high-quality sports nutrition products, including protein powders, energy drinks, pre-workout supplements and snacks. Many of their products have unique flavours, which helps them to stand out from the crowd. They have an average two-year CAGR of 59%, which indicates a significant rate of return and suggests strong performance. More than 40,000 Google searches are made a month, and Grenade has more than 257,000 Instagram followers.

"As people in general are becoming more and more conscious of the benefits of good nutrition, Grenade’s use of imagery connected to the fitness industry alongside appealing flavours says it all. Convenience is massive, and easy ordering and big discounts are often available which help their brand loyalty" Nick Peel explains.

Gousto

Gousto provides customers with meal kits so they can make a range of dishes at home quickly and conveniently. They’re helping inexperienced cooks produce fantastic food at home without the need to even leave the house. Gousto has an average two-year CAGR of 70%, 135,000 monthly Google searches and nearly 250,000 Instagram followers.

The fourth and fifth fastest-growing food and drink businesses are Brewdog and Bulk Powders respectively. Each is becoming a powerhouse in their own right thanks to solid growth plans and identifying and filling gaps in the market.

Chris Sedgwick, PR & Brand Development Director of Sedg Creative, a PR consultancy that specialises in brand, pre-media, and development, says “BrewDog has carved out a distinct position in the market by embracing a bold, unapologetic approach to branding and marketing that sets them apart from their competitors.”

“Their dynamic and edgy campaigns have consistently garnered attention, often blurring the lines between controversy and creativity. While some brands remain cautious, opting for neutral or traditional campaigns to avoid backlash, BrewDog thrives on pushing boundaries, fully embracing the mantra that "bad press is still good press."

“What truly sets BrewDog apart is their ability to combine this disruptive marketing with unique product offerings and a clear brand identity. From their craft beers to their unique spirit offering, they continually innovate in ways that resonate with their target demographic.

“Ultimately, it’s BrewDog’s blend of daring marketing, distinct products, and commitment to being unapologetically different that makes them stand out in a crowded market.”

The most popular types of food & drink startups

If you know that you’re keen to start a business in the food and drink industry but you’re not quite sure exactly what type, our data also reveals which are the most popular. Using this information, you can decide if your business idea is different enough to take on the competition, or if you’re ready to fill a gap in the market.

A third (33%) of food and drink startups sell beverages, making them the most popular type of business. Just over a quarter (26%) of startups in the industry sell ready meals and kits, and the same number sell protein powders and supplements. Following this, at just over 7% are both businesses that sell pet food and treats, and bakery goods.

If you have a great business idea, don’t let the fact that some business types are more popular than others. If you have a strong business plan and a unique product, there’s still a fantastic chance of success.

Ready to kickstart your food-and-drink business?

Launching your own food and drink business can be a daunting experience. But, it can also be massively rewarding, especially if you launch the right business at the right time and capitalise on trends and learn from those in the know.

Businesses like Huel and Grenade identified gaps in the market and strategised to fill them. And they did so brilliantly well, which cemented them as the two most successful food and drink startups in the UK in recent years.

There’s plenty to learn from successful food and drink startups, which means your business can also succeed in a competitive market. If you know it’s something you’re keen to do but you’re not quite sure where to start, read our guide on how to start a food business for more information.

If you're now ready to start your food business venture, check if your business name is available and SUAZ will help you set up the rest.