British brands and local produce to see increased demand as Brexit transition ends

Shoppers are planning to buy more British brands and local produce as Brexit transition period ends on 31 December, a recent research has revealed.

According to data from market researchers Lumina Intelligence, 19 per cent of consumers plan to buy more British brands and 12 per cent are going to start to buy more local produce in response to the Brexit deadline.

The impact of COVID-19 pandemic is still keenly felt on shoppers, with 37 per cent saying they were more worried about the coronavirus than the impending exit from the EU.

With prospects for a post-Brexit trade deal with the EU looking precarious, 34 per cent of consumers are worried that prices will go up and with the deadline fast approaching, 6 per cent of consumers have begun to stockpile in case of shortages.

In the absence of a deal, Britain would trade with the EU on World Trade Organisation terms, meaning new tariffs.

Britain’s retail industry has repeated a warning on Friday that shoppers faced higher food prices from next year if new tariffs were imposed in the absence of an agreement.

A recent Lumina Intelligence survey has also brought to light the same concerns, with business leaders from across the hospitality and grocery retail industries listing import tariffs and the uncertainty around price increases as their number one concern about Brexit.

“Whilst a shift towards locally sourced produce and British brands is a huge positive for businesses manufacturing and selling British goods, there will be many businesses that rely on produce from outside of the UK that are currently in limbo as to what the future holds for them post-Brexit,” commented Sarah Coleman, insights and communications director at Lumina Intelligence.

“There is a shared concern for both consumers and businesses that increased import tariffs will result in price increases. At a time when many are feeling the recessionary impact of the coronavirus pandemic, increased costs will be far from welcome.”

Under Britain’s new tariff schedule, which would apply from 1 January if a deal is not agreed, 85 per cent of foods imported from the EU would face tariffs of more than 5 per cent.

The average tariff would be more than 20 per cent, including 48 per cent on beef mince, 16 per cent on cucumbers and 10 per cent on lettuce.