NIQ Global Intelligence plc
08/18/2026 | Press release | Distributed by Public on 08/18/2026 00:38
Foodservice inflation continues in July as drought concerns mount
Foodservice price index July:
Food and drink prices in hospitality rose by 0.2% month-on-month in July, the latest Foodservice Price Index from NIQ and Prestige Purchasing reveals.
While the pace of monthly price increases slowed from 1.8% in June, inflationary pressures remain firmly embedded in foodservice supply chains. Growing concerns over the impact of prolonged heatwaves are creating uncertainty for buyers in key food categories including Vegetables, where hot and dry weather has impacted UK crops. Broccoli, cauliflowers, potatoes, onions, carrots and parsnips have all experienced varying levels of moisture stress, creating uncertainty around future yields and availability. While current pricing remains relatively stable, the industry is closely monitoring supply conditions heading into the autumn.
July brought more positive developments in the Fruit category, where favourable growing conditions supported strong availability of British strawberries, raspberries, blackberries, blueberries, plums and early-season apples. Good domestic supply helped to lower fruit prices month-on-month, providing welcome relief for buyers.
Elsewhere, international grain markets strengthened during July. Wheat prices rose sharply amid concerns over disruption to Black Sea exports and weather-related challenges in several major growing regions, leading to renewed inflationary pressure for bread and cereal products. Vegetable oil markets also moved higher after high biodiesel demand and ongoing geopolitical uncertainty affecting global supply chains.
By contrast, international meat markets weakened for the first time this year. Softer poultry, pork and beef prices helped to ease overall inflation in the Meat category of the Foodservice Price Index, although strong global demand and limited supplies pushed lamb prices to record levels.
July's figures show that while overall foodservice inflation is currently modest, climate-related disruption is fuelling market volatility. As the sector approaches the latter part of 2026, weather conditions are likely to play a critical role in determining the direction of future food and beverage costs.
Shaun Allen, CEO of Prestige Purchasing, said: "July's marginal 0.2% increase feels like the calm before a potential storm. With UK drought conditions actively threatening domestic vegetable yields, and global grain markets reacting to renewed geopolitical stress in the Black Sea, operators cannot afford to be complacent. The transition from summer to autumn will be a critical period for supply availability, making proactive, data-led procurement absolutely essential."
Reuben Pullan, senior insight consultant in the hospitality operators and food team at NIQ, said: "Broadly flat prices in July disguise significant volatility in the foodservice supply chain, and buyers face a very uncertain autumn and winter. While high temperatures can work to the advantage of many hospitality businesses in sales terms, extreme climate issues are likely to have seismic impacts on their operations in the years to come. Mitigating inflation is an urgent priority for venues seeking to retain guests and protect margins."
For further information, interviews or images, contact Prestige Purchasing on 01908 222678 or [email protected].
About Prestige Purchasing
Prestige Purchasing is one of the UK's leading specialists in procurement and supply chain management for the hospitality, catering, leisure, retail and private healthcare sectors.
About NIQ
NielsenIQ (NYSE: NIQ) is a leading consumer intelligence company, delivering the most complete and trusted understanding of consumer buying behavior and revealing new pathways to growth. By combining an unmatched global data footprint and granular consumer and retail measurement with decades of AI modeling expertise, NIQ builds decision systems that help companies turn complex data into confident action.
With operations in more than 90 countries, NIQ covers approximately 82% of the world's population and more than $7.4 trillion in global consumer spend. Through cloud-based platforms, advanced analytics and AI-driven insights, NIQ delivers The Full View™-helping brands and retailers understand what consumers buy, why they buy it, and what to do next.
For more information, please visit www.niq.com.
Forward looking statement
This press release regarding sales trends on Britain's hospitality sector food and drink prices may contain forward-looking statements regarding anticipated consumer behaviors, market trends, and industry developments. These statements reflect current expectations and projections based on available data, historical patterns, and various assumptions. Words such as "expects," "anticipates," "likely," "may," "poised to,", and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future outcomes and are subject to inherent uncertainties, including changes in consumer preferences, economic conditions, technological advancements, and competitive dynamics. Actual results may differ materially from those expressed or implied in these statements. While we strive to base our insights on reliable data and sound methodologies, we undertake no obligation to update any forward-looking statements to reflect future events or circumstances, except to the extent required by applicable law.
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NIQ Global Intelligence plc published this content on August 18, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on August 18, 2026 at 06:41 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]