- British confectionery companies to benefit from removal of tariffs in time for Valentine’s Day 2024 under the UK’s trade deals with Australia and New Zealand
- Australian couples set to splash an estimated £280 million on Valentine’s Day this year, up 16.9% from 2022
- New trade deals with Australia and New Zealand expected to boost UK economy by £2.3 billion and £800 million respectively
British confectionery companies are celebrating a potential export boost in time for Valentine’s Day 2024, with tariffs on exports to Australia and New Zealand set be removed under the UK’s new Free Trade Agreements (FTAs).
The UK-Australia and UK-New Zealand trade deals are the first the UK has negotiated from scratch since leaving the European Union. They are set to come into force this year and to boost the UK economy by £2.3 billion and £800 million respectively.
Aussie and Kiwi lovers may be able to enjoy organic chocolate from London-based chocolatiers Seed & Bean who are keen to restart exports Down Under. They estimate the FTAs could unlock a £100,000 export opportunity should they find a distributor.
With Valentine’s Day spending in Australia increasing year-on-year, British bakeries and chocolate manufacturers could see a Valentine’s sales boom after the deals come into force. Seed & Bean say they already experience a 25% online traffic boost in the build-up to Valentine’s Day as lovers look to gift sweet treats.
Research conducted by market research firm Roy Morgan on behalf of the Australian Retailers Association showed that Australian couples are set to splash an estimated £280 million on Valentine’s Day this year, up 16.9% from 2022.
According to the market research company Statista, the Australian confectionery and snacks market is worth £13.2 billion in 2023 and is expected to grow annually by 1.64% over the next four years, demonstrating the strong growth potential of this market.
In New Zealand, this market is projected to reach £61 million in 2023 and is expected to show an annual growth rate of 16.97% over the next 4 years.
UK food and drink exports to Australia and New Zealand have more than doubled in the last decade and, under the FTAs, UK businesses will benefit from the elimination of tariffs on all products. The agreement will also ensure food and drink products exit customs quickly, providing businesses with certainty when exporting products to Australia and New Zealand.
Minister of State at the Department for Business and Trade Nigel Huddleston said
Our new deals with Australia and New Zealand will allow our fantastic British confectionery businesses like Original Cake Company and Seed & Bean to become more competitive and export their top-notch products Down Under with ease.
These landmark trade deals are expected to stimulate trade, drive economic growth and lead to better paying jobs, bolstering British businesses and empowering them to tap into significant markets in the flourishing Asia-Pacific region.
Seed & Bean was founded in London 2005 with the idea to create an ethical range of confectionery. They previously exported to Australia and New Zealand, however this ceased due to COVID. They maintain an ambition to export to both nations again and the FTAs would help do that.
The FTAs with Australia and New Zealand could boost the economy of London by around £395 million and £130 million respectively.
Seed & Bean’s Chief Chocolatier Oliver Shorts said:
The trade deals with Australia and New Zealand will help us reduce the landed cost of our organic chocolate bars into the two countries.
One of the big barriers to entry are the costs involved in getting the goods in, and this will allow us to help any potential distributor margins and permit the product to be a more viable opportunity in the market.
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