Food production is one of the most energy-intensive sectors in the UK economy. Whether producing baked goods, ready meals, dairy products, confectionery, meat and poultry, beverages, fresh produce or frozen foods, manufacturers rely heavily on electricity and gas for refrigeration, cooking, heating, cooling, cleaning, packaging and continuous processing.
Monthly energy costs can vary widely—but they typically represent a significant proportion of operational expenditure. Understanding typical consumption levels helps businesses budget accurately, improve efficiency and choose the best commercial energy tariffs.
Typical monthly energy usage in food production
Electricity demand comes from refrigeration, motors, conveyors, packaging systems, lighting and compressors. Gas is used for ovens, boilers, steam kettles, drying, blanching, pasteurisation and space heating.
| Food production scale | Electricity (kWh/month) | Gas/steam (kWh/month) |
|---|---|---|
| Small (artisan bakery, small kitchen, micro-producer) | 3,000–8,000 | 4,000–12,000 |
| Medium (regional producer, multi-line facility) | 10,000–25,000 | 15,000–40,000 |
| Large (industrial food factory) | 30,000–70,000+ | 40,000–120,000+ |
Businesses specialising in frozen foods, ready meals, confectionery, dairy processing, brewing and meat production sit at the higher end of the scale due to heavy refrigeration or high-temperature cooking stages.
Estimated monthly energy cost for a food production business
A medium sized food production facility with multiple production lines typically spends between £3,950 and £10,100 per month on combined electricity and gas. High-volume operations, multiple cooking stages and large cold stores push costs towards the upper end.
| Business size | Electricity cost | Gas/LPG cost | Total monthly energy cost |
|---|---|---|---|
| Small | £780–£2,080 | £360–£1,080 | £1,140–£3,160 |
| Medium | £2,600–£6,500 | £1,350–£3,600 | £3,950–£10,100 |
| Large | £7,800–£18,200+ | £3,600–£10,800+ | £11,400–£29,000+ |
Industrial-scale food processing plants with multiple ovens, blast chillers, large refrigeration warehouses or steam-intensive cooking can exceed £40,000 per month.
Which food production activities use the most energy?
| Activity / system | Electricity (kWh/month) | Gas/steam (kWh/month) |
|---|---|---|
| Refrigeration & cold storage | 1,000–12,000 | N/A |
| Blast chilling & freezing | 800–10,000 | N/A |
| Ovens, fryers, steam kettles | 300–2,000 | 4,000–40,000 |
| Pasteurisation & boiling | 200–800 | 6,000–30,000 |
| Cooking/thermal processing | 300–1,500 | 3,000–20,000 |
| Clean-in-place (CIP) washing | 150–700 | 200–1,500 |
| HVAC and ventilation | 500–3,000 | 400–1,000 |
| Packaging lines & conveyors | 300–2,000 | N/A |
| Lighting | 300–1,500 | N/A |
Refrigeration and high-temperature cooking typically account for 50% or more of energy spend in many food production operations.
Key factors affecting food production energy bills
Production volume and batch frequency
More shifts, larger batches and continuous processes increase both gas and electricity usage.
Temperature control requirements
Chilled, frozen or hot food production significantly increases energy demand.
Process heating intensity
Boiling, frying, steaming, baking and sterilising all require high-energy inputs.
Refrigeration scale
Large cold stores and continuous freezing lines are among the highest electricity consumers.
Building condition and insulation
Poor insulation or large, drafty industrial units increase both heating and cooling energy.
Automation and machinery
Motor-driven equipment, conveyors, compressors and packaging lines add electrical load.
Seasonal impact on food production energy costs
| Season | Typical increase | Reason |
|---|---|---|
| Winter | +20% to +45% | Space heating, increased HVAC load |
| Summer | +15% to +35% | Increased refrigeration and cooling demand |
| High production periods (e.g., Christmas) | +10% to +40% | Additional shifts and processing cycles |
Chilled and fresh food producers experience higher electricity costs during hot weather; bakeries and thermal processors see more winter heating costs.
How to reduce energy costs in food production
| Energy-saving measure | Saving potential | Notes |
|---|---|---|
| Install heat recovery from ovens & refrigeration | 20–45% | Recovers heat for hot water or space heating |
| Upgrade refrigeration insulation & doors | 15–30% | Reduces cooling losses in cold stores |
| Use high-efficiency burners or electric ovens | 15–25% | Cuts gas consumption significantly |
| Switch to LED lighting | 10–20% | Effective in large manufacturing spaces |
| Fix air leaks in compressors | 15–30% | A major hidden energy cost in factories |
| Install variable-speed drives (VSDs) | 10–20% | Improves pump, fan & motor efficiency |
| Optimise production schedules | 5–15% | Reduces peak-time energy usage |
| Use fixed or flexible business tariffs | 8–12% | Helps manage high and fluctuating energy demand |
Why energy management is crucial for food producers
Energy is often one of the top three operating expenses for food manufacturers—sometimes exceeding 20% to 40% of total production costs in highly thermal or refrigeration-intensive operations.
Efficient energy use reduces cost per unit produced, supports sustainability goals, and improves margin stability in a competitive market.
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FAQ
A medium sized food production facility with multiple production lines typically spends between £3,950 and £10,100 per month on combined electricity and gas. High-volume operations, multiple cooking stages and large cold stores push costs towards the upper end.
A small producer—such as an artisan bakery, ready-meal kitchen or confectionery unit—typically uses between 3,000 and 8,000 kWh of electricity monthly. At an average rate of 26p per kWh, this results in electricity costs of roughly £780 to £2,080 before standing charges.
It depends on the production method. Businesses relying on ovens, steam kettles, deep fryers, pasteurisation or boiling processes tend to spend more on gas. Operations with large freezers, refrigeration or blast chillers usually spend more on electricity.
Refrigeration, freezing, ovens, steam kettles, pasteurisation systems and high-temperature cooking processes are the most energy-intensive. Refrigeration alone can account for 30% to 50% of total electricity consumption in many food factories.
Energy use increases by 20% to 45% in winter due to heating and ventilation demands, and by 15% to 35% in summer because refrigeration systems work harder. Seasonal peaks—such as Christmas for bakeries and ready-meal producers—also increase usage.
Yes. Measures such as sealing cold store doors, insulating ovens, switching to LED lighting, repairing air compressor leaks, and optimising production run times can reduce energy consumption by 10% to 30% without major capital investment.
Large industrial food manufacturers may consume between 40,000 and 120,000+ kWh of gas each month, depending on their processing requirements. This often results in heating costs of £3,600 to £10,800 or more.
Often yes. Large cold stores, blast chillers and continuous refrigeration cycles make chilled and frozen food operations among the highest electricity users in the sector, frequently representing 40% or more of their total energy spend.
Energy typically makes up 15% to 40% of operating costs in food manufacturing, depending on the thermal or refrigeration intensity of the processes. High-heat or frozen-goods producers sit at the top end.
Yes. Because food factories have highly predictable operating hours and significant energy loads, fixed tariffs often provide cost certainty and savings of 8% to 12% annually. Flexible tariffs may suit seasonal producers or those with variable batch schedules.