R&D in Food & Drink

Key facts

New formulations that require resolving scientific uncertainty (flavour stability, texture, nutritional content) can qualify.
Shelf-life extension projects involving food science — microbiology, packaging science, preservation techniques — frequently qualify.
Allergen management and reformulation to remove specific ingredients while maintaining taste and texture can involve genuine uncertainty.
Production process innovations — such as scaling a recipe from lab to factory without losing quality — often qualify.
R&D does not include routine recipe development, taste testing, or market research.

R&D in the Food & Drink Sector

The food and drink industry is a major contributor to UK R&D, yet many companies in this sector do not realise their development work qualifies for tax credits. Food science, process engineering, and packaging technology all involve scientific disciplines where genuine uncertainty frequently arises.^[2]

The key is to look beyond “creating new products” and identify the underlying scientific or technological challenges that your team had to overcome.

Areas That Commonly Qualify

Formulation & Recipe Development

Qualifying formulation work typically involves:^[1]

Developing products with specific nutritional profiles (reduced sugar, high protein, fortified vitamins) where achieving the target while maintaining taste and texture is uncertain
Creating free-from products (gluten-free, dairy-free, vegan) that must replicate the functional properties of the removed ingredient
Working with novel ingredients (insect protein, plant-based alternatives, novel fibres) where the behaviour in food systems is not well understood
Achieving clean label formulations by replacing synthetic additives with natural alternatives without compromising stability

Shelf Life & Preservation

Extending product shelf life often involves genuine food science uncertainty:

Developing preservation techniques (high-pressure processing, pulsed electric fields) for products where the efficacy is unproven
Formulating products that maintain microbiological safety and sensory quality beyond current shelf-life benchmarks
Designing modified atmosphere packaging (MAP) for products where the optimal gas mix is not known

Production & Process

Scaling recipes from lab or pilot kitchen to full production where the process behaves differently at scale
Developing continuous production processes for products that have only been made in batch
Achieving consistent quality with natural, variable raw materials

Examples of Qualifying Food & Drink R&D

Project	Uncertainty
Developing a plant-based cheese alternative with melt and stretch properties comparable to dairy cheese	Unknown whether plant protein and fat combinations can replicate the casein matrix behaviour during heating
Reducing sugar by 40% in a jam while maintaining set, mouthfeel, and shelf stability	Sugar is a functional ingredient (preservative, bulking agent, texture); uncertain how to replace all functions simultaneously
Creating a gluten-free sourdough bread with comparable crumb structure and flavour to wheat sourdough	Gluten provides the protein network for gas retention; alternative hydrocolloids and fermentation parameters needed systematic investigation
Scaling a craft beer recipe from 500L pilot to 50,000L production while maintaining flavour profile	Fermentation kinetics, temperature gradients, and hop utilisation behave differently at scale; uncertain whether the same flavour can be achieved
Developing an active packaging film that releases antimicrobial agents to extend fresh meat shelf life from 7 to 14 days	Uncertain whether the release rate and concentration of the antimicrobial can be controlled to maintain food safety without affecting taste

What Does Not Qualify

The following activities are common in food & drink companies but do not qualify:^[1]

Routine recipe development: Combining known ingredients in standard proportions with predictable results
Taste testing and sensory panels: Consumer research is not science or technology
Market research: Identifying consumer trends or preferences
Regulatory compliance: Routine testing to meet food safety standards (unless the testing is part of resolving R&D uncertainty)
Cosmetic changes: Changing packaging design, labelling, or product appearance without scientific challenge

Tip: If your NPD (new product development) team keeps a “technical challenges” log or a record of formulation trials and failures, these documents are excellent evidence for an R&D claim. Start keeping records if you do not already.

Typical Eligible Costs

Cost Category	Food & Drink Examples
Staff costs	Food technologists, NPD managers, food scientists, process engineers
Consumable materials	Ingredients for trial batches, prototype products, packaging materials for trials
Subcontractors	External laboratories (microbiology, nutritional analysis), university food science departments
Utilities	Energy for pilot kitchen, production trials, cold storage for shelf-life studies
Software	Formulation software, nutritional analysis tools

Frequently Asked Questions

Does creating a new recipe qualify as R&D?

Not automatically. Routine recipe development — combining known ingredients in standard proportions — does not qualify. However, if the recipe requires resolving scientific uncertainty (for example, achieving a specific texture or nutritional profile that cannot be achieved using known formulation techniques), the work to resolve that uncertainty can qualify.

Can shelf-life testing qualify?

Shelf-life testing itself is a routine activity. However, the development work to achieve a longer shelf life — such as experimenting with preservation methods, modified atmosphere packaging, or novel ingredient combinations — can qualify if genuine scientific uncertainty exists about whether the target can be achieved.

Does reformulating for allergen removal qualify?

It can. Removing a key functional ingredient (such as gluten, dairy, or eggs) while maintaining the same taste, texture, and stability often involves genuine food science uncertainty. If a competent food scientist could not predict the outcome, the systematic work to find a solution qualifies.

What about packaging innovation?

Yes, packaging innovation can qualify if it involves scientific or technological uncertainty. Examples include developing new barrier films, active packaging that extends shelf life, or sustainable packaging materials that must meet specific performance criteria. Purely aesthetic packaging changes do not qualify.

Sources

Guidelines on the meaning of research and development for tax purposes — GOV.UK / DSIT
Corporation Tax: Research and Development (R&D) relief — GOV.UK
CIRD81900 – R&D tax relief: conditions to be met — HMRC