Opportunities emerging for Northern Ireland’s food and drink sector
26th Mar 2026
Charlie Kerlin, Head of Food and Beverage, Grant Thornton Advisors (NI) LLP
As businesses across Northern Ireland’s food and drink sector look ahead to the remainder of 2026, the trading conditions and developments of 2025 offer a useful indicator of what may lie ahead.
Last year demonstrated once again the resilience of the industry. Despite facing familiar pressures, including disease risks such as avian flu, volatile input costs and ongoing labour constraints, many manufacturers and processors experienced a more stable trading environment than in the preceding few years. That resilience, combined with sustained export activity, suggests the sector is in a relatively strong position for the remainder of 2026.
At the same time, several developments last year highlight the challenges that are likely to continue to shape the year ahead. Taxation proposals, especially around inheritance tax on business and agricultural property, prompted concern across many family-owned businesses. Even where some proposals were softened, the debate itself has encouraged many owners to reassess succession plans and long-term strategy, with some considering investment, restructuring or potential exit.
Workforce pressures and regulatory complexity also remain structural challenges for the industry. Encouragingly, targeted interventions are beginning to support businesses in addressing these issues. Invest NI’s Agri-Food Investment Initiative, for example, has enabled companies to focus on productivity improvements by investing in automation and modernisation. By helping firms respond to labour shortages while strengthening long-term competitiveness, the programme’s extension into 2026 is a positive signal for the sector.
From a corporate finance perspective, the trends which emerged in 2025 are likely to continue this year. Scale is becoming increasingly important across the agri-food industry, yet many businesses still lack clear succession pathways. This combination is driving transaction activity, with strong appetite from trade buyers, private equity and family office investors. Recent high-profile deals underline that interest in Northern Ireland food and drink businesses remains strong – not only from international acquirers, but also from buyers within the local market. Quality assets are achieving strong multiples.
Northern Ireland’s trading position may also prove to be a strategic advantage as the year progresses. While regulatory complexity remains a challenge, access to both UK and EU markets is increasingly recognised by investors and operators as a competitive differentiator compared with businesses based solely in Great Britain.
Looking ahead, there is an opportunity for policymakers to build on these foundations. Continued focus on skills development and regulatory clarity will be critical, but there is also
a long-standing opportunity to strengthen how Northern Ireland food and drink is promoted internationally. Other regions have demonstrated the benefits of coordinated branding and market access support, and progress in this area could unlock significant growth potential.
Taken together, the signals from 2025 suggest cautious optimism for the year ahead. Challenges will remain, but resilient trading, sustained investor interest and targeted support measures point to a sector that is well positioned to navigate change and capitalise on emerging opportunities throughout 2026.
