As UK food processors face increasing scrutiny over product quality, environmental impact, and workplace compliance, understanding the risks and challenges is crucial for sustainable growth. Contact our experts to discuss how they can help support your businesses future development.
From labelling rules to product recalls and sustainability mandates, the regulatory landscape for UK food processors is evolving fast. In this article, we explore the top legal and compliance challenges businesses are facing—and how to manage the risks without losing focus on growth.
Food processing businesses operate in one of the most tightly regulated industries in the UK and Northern Ireland. Whether you're manufacturing for retail, hospitality or export, there’s growing scrutiny around:
- Product quality
- Environmental impact
- Workplace compliance
A single misstep can lead to serious consequences. This could be an undeclared allergen, a packaging error, or an unsafe working condition. Concerns about food safety and nutrition are at the forefront of consumer expectations, especially regarding products like fresh fruits and canned fruits. For instance, consumers expect that fresh fruits are free from pesticides and contaminants, while canned fruits must meet strict standards for preservation and labelling to ensure they are safe and nutritious.
And with new and updated regulations coming thick and fast, even the most diligent businesses with efficient food processing methods are finding it hard to keep up.
Navigating food processing regulations
Over the past few years, food and drink manufacturers have had to adapt to shifting rules across various areas. This includes high fat, sugar, and salt/sodium (HFSS) restrictions. They are also facing new environmental reporting standards like Extended Producer Responsibility (EPR).
There’s also increasing scrutiny around ultra-processed foods, food additives, and how they’re marketed and positioned with health-conscious consumers. This includes the importance of clear labelling for products like ready meals and meat products. It also emphasises the quality.
These rules require not just compliance, but clarity on:
- How raw ingredients are sourced within the supply chain
- How packaging is disposed of
- How data is managed and reported
EPR, in particular, is now a reputational issue as well as a regulatory one. There is growing pressure to reduce excessive packaging and improve recyclability, especially for products in cans and bottles, such as juice and beer.
As regulators, like the Food Standards Agency, tighten requirements and consumer expectations grow, food businesses need more than ad-hoc fixes. They require clear strategies for long-term compliance with evolving legislation.
Product recall and food safety risks are rising
Food contamination incidents remain one of the most serious risks facing manufacturers. Whether it’s due to allergens, foreign objects, or bacterial outbreaks, the implications can be devastating, and repercussions could include:
- Widespread product recalls
- Legal claims
- Lost contracts
- Long-term brand damage
These events can also trigger knock-on impacts, ranging from business interruption to property-related losses. Such impacts may not be covered under standard recall policies. That’s why it’s vital to ensure all covers work together effectively. It is important that product recall, liability, property, and business interruption wordings are reviewed as a connected whole.
Too often, businesses only discover gaps in cover or exclusions when it’s too late. Policy limits that haven’t kept pace with growth, outdated wordings, or overlooked exclusions can all lead to significant exposure.
From compliance to prevention, enhancing food processing methods
Many food processors already have robust systems in place to monitor compliance. However, the challenge lies in making those systems work harder. A regular review of the following can help to spot early warning signs and reduce the chance of issues arising in the first place:
- Health and safety procedures
- Traceability controls
- Claims history
It’s also worth reviewing whether your current legal expenses or recall cover is broad enough to support you in a dispute. Additionally, it should be proactive enough to help avoid one. This is particularly important for small businesses that may not have the same resources as larger corporations.
Working with an insurance broker that understands the legal obligations specific to the food and drink sector can make all the difference. This expertise helps organisations avoid surprises and stay prepared.
More support, fewer surprises
At Marsh Commercial, we help food businesses navigate legal and compliance risks more effectively. That includes structuring and reviewing product liability and recall cover—but also providing specialist advisory support for larger clients. Including, for example:
- Health and safety
- Sustainability
- Regulatory guidance
- Claims readiness
Our goal is to make sure you’re not just protected, but prepared. Regulation isn’t slowing down. With the right support, your business doesn’t have to, either.
Want to know how other businesses in the food industry are managing workforce risk? Read our article on workforce pressures.
Find out how we can help
Contact us today to explore how reciprocal tariffs could affect your business. Our team is here to provide support and strategies to help navigate these changes effectively.
