|
|
We’ve all heard about office space transforming post-pandemic, but there’s another, less glamorous (but delicious) sector quietly on the rise—kitchen and food manufacturing space.
Yes, that’s right. While many businesses are rightsizing their office portfolios and figuring out hybrid work models, the food manufacturing sector is, quite literally, cooking up growth. From local producers scaling up to national brands seeking smaller urban kitchens, the demand for specialist space is simmering—and it’s starting to boil over.
So, what’s going on in Scotland’s kitchens?
According to Cluttons’ Industrial Insight 2024, Scotland is predicted to need an additional three million square feet of industrial space by 2028 to keep up with manufacturing sector growth. But within that figure, a specific slice is dedicated to food. The demand for kitchen and food processing units is expected to rise by 38,500f2 in the same period, driven by a boom in local food production.
We’ve seen this first-hand at STEP. We’re receiving more enquiries for kitchen-ready units than ever before—from bakeries needing HACCP-compliant spaces, to snack producers looking for storage and testing areas.
It’s a marked shift from five years ago, when food manufacturers would typically look out-of-town or custom build.
Today, there’s a clear appetite for move-in-ready space in accessible, urban locations.
What’s Driving It?
The Rise of the Local Maker
Scotland’s love for local produce is booming. From jam-makers to hot sauce creators, artisan food producers are scaling up faster than before, often graduating from home kitchens to commercial units within a couple of years.
Supermarket and Online Demand
As large retailers and direct-to-consumer platforms (like Not on The High Street or Amazon Fresh) look to stock small-batch, niche products, local brands are stepping up to meet volume demands.
Urban Convenience
Many food businesses want to stay close to their market, workforce and logistical partners. Smaller, well-located kitchens are now being prioritised over large rural production sites.
It’s not just about space it’s also about what’s in the space.
The requirements for food manufacturing space can vary widely depending on the type of product being made:
· Specialist extraction systems to manage odours, steam and grease from cooking processes.
· Hygienic, food-safe wall and flooring finishes to meet compliance and ensure easy cleaning.
· Temperature-controlled environments such as cold storage or walk-in freezers for perishable goods.
· Robust waste management solutions, including grease traps and proper drainage.
· Easy access to loading bays and bulk storage areas to streamline deliveries and distribution.
And of course, they need flexibility. The same way office tenants want to upsize or downsize depending on their headcount, food producers want to scale up for Christmas or scale down in the slower months.
It’s why STEP continues to offer flexible lease options for all our tenants—no sneaky fees, just a commitment to growing and supporting businesses.
We believe food manufacturing is more than a trend—it’s a sustainable growth sector. That’s why we’re investing in better-fit spaces for this market and working with partners to support the rise of Stirling-based producers.
Whether it’s start-ups coming out of the courses at Forth Valley College, or established brands looking to expand production lines, Stirling is well-placed to meet demand—if we provide the right space.
At STEP, we don’t just provide space—we support every business journey. We’ve helped everyone from street food vendors needing prep kitchens to high-growth drinks brands looking for long-term leases. What makes Stirling unique is the wraparound support available, with a full ecosystem that supports food businesses from idea to international sales:
– Business Gateway Stirling, delivered by STEP, has a dedicated Food, Drink and Tourism adviser, plus a specialist Rural Adviser to support businesses operating outside city centres. They offer tailored advice, funding support, and connections across the food supply chain.
– Forth Valley College is developing the next generation of food talent, with robust hospitality and catering programmes, helping students move from education into entrepreneurship.
– Forth Valley Food and Drink Network connects producers across the region, offering collaboration opportunities, shared marketing, and access to retail events, restaurants, and local shops. Their affordable membership model allows small businesses to plug into a wider support system quickly.
– Go Forth Stirling BID champions the city’s hospitality and retail sector, actively promoting local producers through trails, city-centre pop-ups and events—providing direct market access for food businesses looking to grow their customer base.
· And our local logistics and tourism infrastructure continues to attract more food and drink businesses who want to be near customers, visitors, and transport links.
Together, this ecosystem is creating fertile ground for kitchen-based businesses to thrive – whether that’s prepped meal kits, farm-to-fork brands, or innovative food start-ups scaling up.
If your business is part of the food manufacturing wave or you’re seeing new opportunities in this sector get in touch. Our team knows the ins and outs of what makes a food space work.
Email us at property@stepscotland.co.uk to find your flavour of workspace.
