Beyond HFSS: The Commercial Opportunity for Healthier Food Brands in the UK

Summary

The UK’s evolving approach to less healthy food and drink is changing the commercial landscape for packaged food brands.

New advertising restrictions are part of that change, but the bigger picture extends well beyond marketing compliance. Product formulation, innovation, positioning, retailer relationships and changing consumer expectations are all influencing where future growth opportunities may lie.

For food manufacturers and international brands looking at the UK market, the question is therefore not simply how to respond to HFSS regulation. It is how healthier and non-HFSS products can form part of a stronger long-term commercial strategy.

The Market Is Moving Beyond HFSS Compliance

HFSS – high in fat, salt and sugar – has become an increasingly important consideration for food manufacturers operating in the UK.

Since January 2026, additional restrictions have applied to advertising for certain products classified as “less healthy”, including restrictions on paid online advertising and television advertising before 9pm.

For manufacturers, however, treating these changes purely as an advertising or compliance issue risks overlooking their wider commercial significance.

The direction of travel is encouraging businesses to think more carefully about their product portfolios, nutritional profiles, innovation pipelines and how products are positioned within increasingly competitive categories.

This creates challenges for some established products, but it can also create opportunities for brands able to respond strategically.

From Regulation to Commercial Strategy

One potential response to tighter regulation is simply to adjust marketing activity around products affected by the rules.

A more strategic question is:

Does our current product portfolio reflect where the UK food market is heading?

For some manufacturers, the answer may involve reformulating existing products. For others, it could mean developing new ranges, introducing healthier alternatives or reconsidering which products offer the greatest potential within the UK market.

These decisions shouldn’t be driven by regulation alone.

Successful product development still needs to account for taste, price, convenience, consumer demand, category dynamics and retailer requirements. A product that meets a particular nutritional profile but fails to meet consumer expectations is unlikely to succeed commercially.

The opportunity therefore lies in finding the intersection between health, consumer demand and commercial viability.

Healthier Doesn’t Have to Mean Compromising the Proposition

One of the challenges facing food manufacturers is that “healthier” can easily become the entire product proposition.

But consumers rarely make purchasing decisions based on a single factor.

Taste, convenience, value, familiarity, quality and brand trust continue to influence what ends up in the shopping basket.

For brands developing healthier or non-HFSS products, nutritional credentials should therefore complement a compelling consumer proposition rather than replace one.

This is particularly important for international manufacturers entering the UK. A product that performs successfully in one country cannot automatically be assumed to have the same positioning, audience or competitive advantage in another.

Understanding the local consumer and category is critical.

Reformulation Can Create Opportunities – But It Needs a Commercial Case

Reformulation is one route manufacturers can explore when responding to changing nutritional expectations.

Reducing levels of fat, salt or sugar may alter how a product is classified, but the commercial implications need to be considered alongside the technical ones.

Questions manufacturers should ask include:

• Will consumers accept the reformulated product?
• How will changes affect taste, texture or shelf life?
• Does reformulation strengthen the product’s positioning?
• Could it create new retailer or category opportunities?
• How does the revised product compare with competitors?
• Is reformulation more commercially attractive than launching a new product or range?

This is why product development, market research and commercial strategy need to work together.

Reformulation should not simply be about reaching a nutritional threshold. It should contribute to a product proposition capable of succeeding in the market.

The Opportunity for Product Innovation

Changing regulation can also accelerate innovation.

Rather than adapting existing products, some manufacturers may find greater potential in developing new propositions designed around changing consumer and retailer requirements from the outset.

This could include products with improved nutritional profiles, different portion formats, new ingredients or propositions targeting specific consumer needs.

For established manufacturers, innovation can help diversify the portfolio and reduce reliance on categories or products facing greater regulatory pressure.

For international brands, it may influence which products from an existing portfolio are best suited to launching in the UK.

In both cases, the strongest opportunities are likely to emerge where genuine consumer demand, category growth and commercial feasibility overlap.

Retailers Are an Important Part of the Equation

For packaged food brands, success ultimately depends on more than consumer demand.

Retailers need to see a convincing reason to list a product.

That means understanding where the product fits within the category, what consumer need it addresses, how it differentiates itself from existing alternatives and what incremental value it can bring.

Healthier positioning can strengthen that conversation, particularly as retailers develop their own strategies around nutrition and product ranges.

But nutritional credentials alone are unlikely to secure long-term success.

Manufacturers still need a strong commercial proposition supported by clear positioning, appropriate pricing, evidence of demand and a credible route to market.

This makes early retailer and market insight particularly valuable when developing products for the UK.

Considering entering or expanding in the UK food and drink market?
See how Green Seed’s UK team helps international food and beverage brands understand the market, identify opportunities and build a commercially viable route to growth.

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What This Means for International Food Brands Entering the UK

The changing landscape is particularly relevant for international manufacturers considering UK expansion.

Rather than viewing the UK as a market where an existing product can simply be launched unchanged, brands should assess their portfolio against local conditions before making significant investment.

That means understanding:

• Which products have the strongest potential within the UK market.
• How competitors are positioned.
• Whether products are likely to fall within relevant HFSS/LHF classifications.
• How UK consumers perceive the category.
• What retailers expect from new suppliers.
• Whether packaging, positioning or formulation needs adapting.
• Which routes to market offer the strongest commercial opportunity.

This work can identify potential barriers early, but it can also reveal opportunities that may not have been obvious from outside the market.

In some cases, the strongest UK opportunity may not be the manufacturer’s best-selling product at home.

Five Questions Food Brands Should Be Asking

For manufacturers reviewing their UK strategy, the current environment provides a useful opportunity to step back and assess the wider commercial picture.

1. Which parts of our portfolio are most exposed?

Understanding how existing and planned products are classified provides a starting point for deciding where further action may be required.

2. Where are the strongest opportunities for healthier products?

Look beyond regulation to understand consumer demand, competitive intensity, retailer activity and wider category trends.

3. Should we reformulate, reposition or innovate?

Different products require different strategies. Reformulation may make commercial sense in one category while launching an entirely new proposition may offer greater potential in another.

4. Is there a compelling consumer proposition?

Being healthier is not automatically enough to persuade consumers to switch. Products still need to deliver on the attributes that matter within their category.

5. Does the opportunity work commercially?

Ultimately, every product decision needs to support sustainable growth. Manufacturing costs, pricing, distribution, retailer margins and market potential all need to be considered alongside consumer and regulatory factors.

A Broader Shift in the UK Food Market

The significance of HFSS and LHF regulation extends beyond the products directly affected.

It forms part of a broader conversation about the future of food, nutrition and the role manufacturers and retailers play in responding to changing expectations.

For food brands, this means the strongest response isn’t necessarily to treat regulation as another compliance exercise.

It is to use the changing environment as an opportunity to reassess the portfolio, understand where consumer and retailer demand is moving and identify where future growth could come from.

Brands that do this effectively can move from reacting to regulatory change to making better-informed commercial decisions.

Turning Change Into Commercial Opportunity

The UK remains a highly developed and competitive food and drink market, and changing regulation adds another consideration for manufacturers looking to grow within it.

But change also creates opportunities.

New consumer needs emerge. Retailer priorities evolve. Categories develop. New products gain relevance while established propositions may need to adapt.

The challenge for food manufacturers is identifying which opportunities have genuine commercial potential.

Green Seed works with food and beverage businesses across Europe to understand markets, identify opportunities and develop strategies for sustainable commercial growth.

Whether you’re reviewing an existing UK portfolio, exploring healthier product opportunities or considering entering the UK market for the first time, understanding the market before making major commercial decisions can significantly improve your chances of success.

Get in touch with Green Seed to discuss how your brand can identify and develop the right opportunities within the changing UK food market.