Revealing the economic views of its members from 29 June - 17 July, the survey found that 62% of respondents experienced increased ingredient costs, packaging costs (61%) and energy costs (51%).
That said, 54% of businesses also saw sales increase and 42% a rise in new product launches in in Q2.
While the UK’s relationship with the EU remains a key concern for members – many see contingency measures as a barrier to success - 66% felt general business confidence had remained static during the last two quarters.
So much so that they are still looking to invest in the second half of the year - identifying new machinery and product launches as two of the top three opportunities.
FDF chief executive, Ian Wright, said: “The shadow of a ‘no deal’ Brexit looms large over business confidence among the UK’s food and drink manufacturing industry.
“This should be no surprise: there are so many crucial questions to which businesses need answers.
“Despite this, manufacturers remain resilient. It is encouraging to see so much future investment planned.
“Now Government must start providing the clarity needed to navigate unchartered waters as we look to prepare for our future outside the EU.”