British exporters could benefit from price premiums of up to £3.5 billion every year across ten key countries, according to research from Barclays Corporate Banking.

A study of over 10,000 people across the US, Republic of Ireland, France, Netherlands, Germany, South Africa, United Arab Emirates (UAE), India, China, and South Korea, asked respondents how much extra they’d be willing to pay if products like food and drink, clothing, and cars had a ‘Made in Britain’ label.

Those surveyed in India said they’d be prepared to pay an 11.6 per cent gross premium for products made in the UK, while respondents in the UAE were happy to pay a 10.8 per cent premium.

USA respondents said they would pay 10.4 per cent extra, closely followed by South Africa at 9.6 per cent, and China at 8.8 per cent.

66 per cent of consumers in China and India said they would pay more for goods made in the UK because “they believe them to be of a higher quality,” a significantly higher number than the survey’s average of 39 per cent.

63 per cent of respondents from China said they have already paid more for British products, while 60 per cent of those surveyed in India have already made more expensive purchases from the UK.

Barclays said that while emerging markets provide an opportunity for growth, the UK’s existing trade partners will continue to buy from the UK, but to a lesser extent.

It predicts that of the £3.5 billion of additional income, £1.2 billion would come from the United States, £543 million from France and £538 million from Germany.

“As the UK enters a new era on the international stage, our research highlights that there is strong appetite for British-made products all over the world,” said James Binns, global head of trade and working capital at Barclays Corporate Banking. “Most notably, it shows there is significant opportunity for growth in markets such as China, India and the UAE, which is timely when new trade routes are being opened up to markets further afield. While the EU and the US remain the biggest trading partners for the UK, there are considerable opportunities for British businesses to grow exports to less traditional markets.”

He added: “These consumers perceive British goods to be higher quality and better value for money, demonstrating international respect for UK-made products. As a result, we think there is opportunity for UK manufacturers to develop profitable new markets while also growing their existing export
flows.”

Graham Stuart MP, minister for exports at the Department for International Trade, said: “Barclays’ report shines a light on the value of the British brand to global consumers and shows the opportunity for UK firms to grow through international sales. “That’s why the government is opening up global markets through trade deals and giving unprecedented levels of support to businesses to start or grow their exporting journey. We want and need an export-led recovery and companies can unlock free government support at great.gov.uk.”

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