Language selection

Search

Market Overview – New Zealand

April 2019

Market snapshot

New Zealand is a small but affluent market with 4.7 million people. The population is expected to reach 5.3 million by 2025. The country's annual per capita consumer expenditure on food and non-alcoholic beverages was US$3,286.9 in 2017, up from US$3,041.3 in 2013.

New Zealand had a gross domestic product (GDP) of US$201.0 billion in 2017, an 8.2% increase from US$185.7 billion in 2016.

New Zealand is a net exporter of agri-food and seafood products with total exports of US$24.9 billion (total imports of US$4.8 billion) in 2017, an increase of 16.6% from 2016.

Canada was New Zealand's thirteenth largest supplier of agri-food and seafood products in 2017, with a 1.9% market share, an increase of 8.8% from 2016. Canada's agri-food and seafood exports to New Zealand were valued at US$89.0 million in 2017, where Canada exported mostly frozen meat of swine and retail dog or cat food, along with preparations for condiments and seasonings, kidney beans, bread and other pastry or baking products.

New Zealand's processed food and beverage imports were valued at US$3.6 billion in 2017 with Canada's share at 2.1%.

Packaged food retail sales were valued at US$7.0 billion in 2017 and are anticipated to reach US$8.9 billion by 2022.

The health and wellness sector grew by a compound annual growth rate (CAGR) of 4.3% from 2013 to 2017 and is expected to grow by 5.3% over the 2018–2022 period.

Production

Potatoes are New Zealand's primary domestic crop, with production at 526,773 tonnes in 2016. However, potatoe production has decreased by a CAGR of −1.6% between 2012 to 2016. Within New Zealand's top ten crops listed, wheat and apple production has also reported similar negative CAGRs. Kiwi fruit (3.6%) and grapes (11.0%) have the highest growth rates during the same period.

Pig production fell by −3.5% from 2012 to 2016, while cattle, sheep and chicken production increased by 2.6%, 1.3% and 5.2%, respectively. Although the number of live goats are lower than other top livestock production in New Zealand, live goats are increasing by 5.7%, while, live sheep, cattle and pig numbers, have fallen over the 2012-2016 period.

Crop production in New Zealand 2012-2016
Top 10 crops ('000 tonnes) 2012 2013 2014 2015 2016 CAGR* % 2012-2016
Potatoes 561.3 513.0 444.5 477.0 526.8 −1.6
Wheat 488.6 447.8 413.5 413.5 459.3 −1.5
Kiwi fruit 376.4 399.9 407.9 419.8 434.0 3.6
Apples 437.2 434.2 426.4 423.8 411.7 −1.5
Grapes 269.0 345.0 445.0 433.5 408.5 11.0
Barley 438.8 416.5 405.7 437.1 364.2 −4.6
Maize 211.2 201.7 237.2 226.3 210.3 −0.1
Onions, shallots, green 236.7 222.8 209.5 206.6 203.4 −3.7
Vegetables, fresh 140.0 144.3 147.2 147.3 148.6 1.5
Pumpkins, squash and gourds 140.4 138.5 131.9 130.0 144.9 0.8

Source: Food and Agriculture Organization Statistical Database (FAOSTAT) Agricultural Production, December 2018

*CAGR: Compound Annual Growth Rate

Meat production in New Zealand 2012-2016
Meat - top 4 ('000 tonnes) 2012 2013 2014 2015 2016 CAGR* % 2012-2016
Cattle meat 607.0 627.2 625.7 675.8 673.1 2.6
Sheep meat 456.3 480.6 487.1 487.1 480.6 1.3
Chicken meat 167.2 167.6 187.7 191.7 205.0 5.2
Pig meat 50.6 47.2 47.8 45.6 43.8 −3.5

Source: FAOSTAT Agricultural Production, December 2018

*CAGR: Compound Annual Growth Rate

Livestock production in New Zealand 2012-2016
Livestock - top 4 (million head) 2012 2013 2014 2015 2016 CAGR* % 2012-2016
Sheep 31.3 30.8 29.8 29.1 27.6 −3.1
Cattle 10.2 10.2 10.4 10.0 10.2 −0.1
Pigs 0.313 0.298 0.287 0.268 0.255 −5.1
Goats 0.090 0.080 0.097 0.075 0.112 5.7

Source: FAOSTAT Agricultural Production, May 2018

*CAGR: Compound Annual Growth Rate

Trade

New Zealand is a net exporter of agri-food and seafood products with total exports of US$24.9 billion in 2017, an increase of 15.3% from 2016. Total imports were US$4.8 billion in 2017, an increase of 10.1% from 2016 (CAGR of 1.9% between 2013-17). Canada was New Zealand's thirteenth largest supplier of agri-food and seafood products in 2017, with a 1.9% market share, representing an increase of 8.8% from 2016.

Canada's agri-food and seafood exports to New Zealand were valued at US$89.0 million in 2017. Top Canadian exports, also found within the top commodities imported across the world, were frozen meat of swine and retail dog or cat food. Other top three commodities exported included preparations for sauces, mixed condiments and seasonings, dried/shelled kidney beans and bread, pastry, cakes, biscuits and other bakers' wares. In 2017, Canada registered an agri-food and seafood trade deficit of US$332.6 million with New Zealand (import US$421.6 million from New Zealand) in 2017.

New Zealand's top agri-food and seafood imports from world in 2017 were food preparations, oilcake and other solid residues resulting from the extraction of palm nuts or kernels, and frozen meat of swine, excluding the bone-in. Key supplying countries who exported as much as 54.1% share of commodities into New Zealand were Australia, United States, Indonesia, China and Malaysia.

New Zealand's top Agri-Food and Seafood imports from the world, 2017
Harmonized System (HS) Code Commodity Import value (US$ millions) Top suppliers and market share % Canada's share %
1 2 3
210690 Food preparations, NES* 420.9 Australia: 36.1 Singapore: 18.7 United States: 16.6 0.5
230660 Oilcake extraction/other of palm nut/kernel 259.7 Indonesia: 64.4 Malaysia: 35.4 Papua New Guinea: 0.1 0.0
020329 Frozen meat of swine: (excluding bone-in) 126.7 Spain: 30.9 Canada: 17.5 Finland: 12.7 17.5
230910 Retail dog or cat food 118.1 United States: 34.0 Canada: 15.7 Australia: 27.6 15.7
190590[a] Bread, pastry, cakes, biscuits and other bakers' wares 111.2 Australia: 49.3 Thailand: 11.5 China: 10.7 3.2
230990 Animal feed preparations 102.5 Australia: 57.7 Chile: 10.6 Thailand: 10.0 0.2
170211 Lactose syrup/solid form 970.6 United States: 56.6 Germany: 30.4 Lithuania: 4.5 0.0
170114 Raw cane sugar: (excluding HS 1701.13) 94.2 Australia: 44.5 Guatemala: 14.7 Costa Rica: 13.9 0.0
100199 Wheat and meslin 88.0 Australia: 91.3 Argentina: 8.7 India: 0.03 0.0
230400 Soybean oilcake/other 80.3 Argentina: 98.7 Malaysia: 0.4 India: 0.4 0.0

Source: Global Trade Tracker, 2018

*NES: Not Elsewhere Specified

a: excludes crispbread, gingerbread and like sweet biscuits, waffles, wafers, rusks and toasted breads or similar products

New Zealand's processed food and beverage imports were valued at US$3.6 billion in 2017 (CAGR of 0.8% between 2013/17). Canada's share was 2.1% (CAGR of 2.4% during the same period). Australia, the United States, Indonesia, Malaysia and China were the largest suppliers of processed food and beverages to New Zealand, providing 57.5% of the market share in 2017. New Zealand's processed food and beverage imports from these top five suppliers have decreased by −1.2% between 2013 and 2017. Although reporting much smaller import numbers in comparison to the top suppliers, in retrospect, Spain, Chile and Ireland are emerging suppliers to New Zealand with increased 5-year growths of 31.4%, 22.5% and 16.5%, respectively.

Retail sales

Packaged food sales increased by a CAGR of 3.5% from 2013 to 2017, with an expected further increase of 5.5% forecasted from 2018 to 2022. Within this category between 2013 and 2017, the best performing category at 2017 retail sales value of US$2.2 billion was dairy products (mainly dairy) that also registered a growth rate of 3.5%, closely followed by snacks (mainly confectionery, savoury snacks), staple foods (mainly baked goods, processed meat and seafood) and cooking ingredients and meals (mainly sauces, dressings and condiments, ready meals). Retail sales value of edible oils (7.2%) and confectionery (5.3%) packaged food products have shown the most growth in retrospect over the last 5 years.

Packaged food retail sales in New Zealand – Historic in US$ millions, fixed 2018 exchange rate
Category 2013 2014 2015 2016 2017 CAGR* % 2013-17
Packaged food 6,072.9 6,285.8 6,459.7 6,673.2 6,970.6 3.5
Dairy 1,818.3 1,887.0 1,933.0 1,978.1 2,089.7 3.5
Baked goods 694.1 719.4 719.6 736.3 752.3 2.0
Confectionery 587.8 610.5 645.3 685.7 723.1 5.3
Savoury snacks 418.2 434.6 456.1 478.3 502.1 4.7
Processed meat and seafood 418.1 434.4 446.5 460.4 483.2 3.7
Sweet biscuits, snack bars and fruit snacks 374.9 384.9 394.5 408.2 422.5 3.0
Sauces, dressings and condiments 351.6 360.3 368.9 383.1 399.1 3.2
Processed fruit and vegetables 266.2 275.7 285.5 289.8 300.2 3.1
Ice cream and frozen desserts 255.8 263.1 269.2 279.1 286.1 2.8
Ready meals 229.0 236.8 243.0 253.7 266.0 3.8
Breakfast cereals 220.9 226.2 229.4 233.2 238.9 2.0
Rice, pasta and noodles 131.1 133.3 139.8 144.7 150.2 3.5
Sweet spreads 93.0 97.7 100.8 105.9 111.4 4.6
Baby food 99.9 104.2 107.0 110.0 111.4 2.8
Edible oils 55.1 59.1 61.8 66.6 72.8 7.2
Soup 58.8 58.5 59.2 60.3 61.6 1.2

Source: Euromonitor International, 2018

*CAGR: Compound Annual Growth Rate

Packaged food retail sales in New Zealand – Forecast in US$ millions, fixed 2018 exchange rate
Categories 2018[e] 2019 2020 2021 2022 CAGR* % 2018-22
Packaged food 7,227.5 7,631.2 8,053.0 8,489.3 8,945.4 5.5
Dairy 2,155.40 2,263.80 2,375.20 2,489.50 2,606.40 4.9
Confectionery 750.3 791.9 835.4 880 925.7 5.4
Baked goods 771.4 806.7 843.5 881.8 921.7 4.6
Savoury snacks 527.1 563.9 603 644.3 688.2 6.9
Processed meat and seafood 506.6 541.4 577.7 615.3 653.9 6.6
Sweet biscuits, snack bars and fruit snacks 440 464.6 491.3 519 547.2 5.6
Sauces, dressings and condiments 415 439.9 465.7 492.2 520 5.8
Ready meals 282.5 306 331 357.1 384 8.0
Processed fruit and vegetables 309.9 326 342.8 360.3 378.5 5.1
Ice cream and frozen desserts 299.2 316.3 334 352.3 371.2 5.5
Breakfast cereals 243.2 252.5 261.9 271.4 286.7 4.2
Rice, pasta and noodles 156.5 166.4 176.9 187.8 199.4 6.2
Sweet spreads 114.7 120.8 127.1 133.6 140.3 5.2
Baby food 113.3 117.6 122.5 127.5 132.7 4.0
Edible oils 78.2 85.5 93.3 101.5 110.1 8.9
Soup 64.1 67.9 71.8 75.7 79.5 5.5

Source: Euromonitor International, 2018

e: Estimate

*CAGR: Compound Annual Growth Rate

In New Zealand, changes have occurred in consumer preferences toward adopting more premium-oriented and artisanal products, particularly in unpackaged leavened or fermented bread that is considered to be a staple food. According to Euromonitor, and noted by the New Zealand Baking Industry Association, strong growth has been observed in unpackaged baked goods in 2018, more from increased sales made by artisanal bakers located in local markets than by the traditional dominated sales from supermarket in-store bakeries.

Goodman Fielder New Zealand Limited continues to lead in baked goods in 2018, with well-known brands which include Quality Baker's, Nature's Fresh, Vogel's, Freya's and Ernest Adams. George Weston Foods competes closely with Goodman Fielder with strong brand recognition by consumers within the baked goods category, which include brands such as Tip Top, Bürgen, Ploughman's, Golder and Ryvita. Such major players are faced with downward pressures to introduce new product developments for premium products that address health and wellness concerns. Also, several companies are offering brands for a limited time, which is a trend that has increased per capita consumption within baked goods (usually a strategy more prominently used in other packaged food categories such as confectionery).

Many key players in the baked goods sector undercut their own name brands by also producing private label products. The average unit price has grown by 1% in retail current value terms in 2018 and although this may have increased volume share among private labels, value share growth has not been as strong as expected. Consumers through increased media attention have forced major suppliers to rationalize their pricing strategy on the price of fresh bread, and demonstrate whether the buying power in terms of nutritional benefits or lack thereof, have indeed increased, to reflect the added value share for these price' increases among private label products.

Top company shares in New Zealand, historic % breakdown, US$ millions
Top 5 company names 2013 2014 2015 2016 2017 2018[e]
Goodman Fielder New Zealand Ltd 32.5 32.1 31.7 30.7 31.0 30.8
George Weston Foods (NZ) Ltd 16.8 16.9 16.4 15.8 15.9 16.1
Progressive Enterprises Ltd 4.9 5.0 5.0 4.9 5.0 4.9
Foodstuffs (NZ) Ltd 4.5 4.6 4.6 4.2 4.3 4.3
Farrahs Breads Ltd 1.7 1.7 1.8 1.9 2.0 2.0
Artisanal 29.9 30.0 30.7 30.6 30.8 31.1
Others 6.3 6.4 6.5 8.6 7.7 7.4
Total company shares 96.6 96.7 96.7 96.7 96.7 96.6

Source: Euromonitor International, 2018

e: Estimate

Health and wellness food products

The health and wellness sector grew by a CAGR of 4.3% from 2013 to 2017 and is expected to grow by 5.3% over the 2018-2022 period. Consumers are starting to be interested in products that can provide health benefits at a good price.

Free from and organic foods showed the largest growth in the 2013-2017 period. These type of food products will continue to lead the way over the next five years, with increased growth occurring in the other categories such as Fortified/Functional (FF), Naturally Healthy (NH) and Better For You (BFY) products.

Health and wellness food product retail sales in New Zealand – Historic in US$ millions, fixed 2018 exchange rate
Category 2013 2014 2015 2016 2017 CAGR* % 2013-17
Health and wellness by type 1,717.0 1,788.6 1,867.7 1,943.9 2,029.4 4.3
Fortified/functional (FF) 343.4 355.2 372.2 389.4 406.2 4.3
Naturally healthy (NH) 727.4 745.5 758.8 775.3 796.6 2.3
Free from 85.4 101.7 113.5 125.1 135.6 12.3
Better for you (BFY) 466.7 483.4 510.2 530.3 554.1 4.4
Organic 94.2 102.7 112.9 123.8 136.8 9.8

Source: Euromonitor International, 2018

*CAGR: Compound Annual Growth Rate

Health and wellness food product retail sales in New Zealand – Forecast in US$ millions, fixed 2018 exchange rate
Category 2018[e] 2019 2020 2021 2022 CAGR* % 2018-22
Health and wellness by type 2,114.1 2,228.0 2,346.4 2,469.1 2,601.3 5.3
Fortified/functional (FF) 425.5 448.6 472.0 496.0 520.5 5.2
Naturally healthy (NH) 815.0 843.3 872.0 900.8 935.6 3.5
Free from 148.0 163.8 180.3 197.0 213.5 9.6
Better for you (BFY) 574.4 602.9 632.4 662.8 694.2 4.8
Organic 151.2 169.4 189.7 212.4 237.4 11.9

Source: Euromonitor International, 2018

e: Estimate

*CAGR: Compound Annual Growth Rate

Opportunities for Canada

On March 8, 2018, Canada signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with 10 countries: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam [entering into force for Canada, New Zealand, Australia, Japan, Mexico and Singapore on December 30, 2018]. CPTPP represents a significant step toward closer trade and investment between Canada and New Zealand. Significant gains are possible for Canadian producers, who could gain market share in economies such as New Zealand. The CPTPP provides Canada with greater market access to CPTPP countries with similar levels of tariffs as major regional competitors like Australia for key sectors, including beef, pork, seafood, cereal and many others. To obtain more information on the CPTPP regarding trade opportunities under this agreement see CPTPP for Agri-Food Exporters.

The CPTPP Agreement, along with the Canada - United States - Mexico agreement (CUSMA) and free trade agreements with the European Union (CETA) and South Korea (CKFTA), will make Canada the only G7 nation with free trade access to the Americas, Europe and the Asia-Pacific region. All Canadian provinces and territories are expected to benefit from the CPTPP.

For more information

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

For additional intelligence on this and other markets, the complete library of Global Analysis reports can be found on the International agri-food market intelligence page, arranged by region.

Resources

Market Overview – New Zealand
Global Analysis Report

Prepared by: Erin-Ann Chauvin, Senior Market Analyst

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2019).

Photo credits
All photographs reproduced in this publication are used by permission of the rights holders.
All images, unless otherwise noted, are copyright Her Majesty the Queen in Right of Canada.

To join our distribution list or to suggest additional report topics or markets, please contact:

Agriculture and Agri-Food Canada, Global Analysis
1341 Baseline Road, Tower 5, 3rd floor
Ottawa, Ontario
Canada, K1A 0C5
Email: aafc.mas-sam.aac@canada.ca

The Government of Canada has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate, Agriculture and Agri-Food Canada (AAFC) assumes no liability for any actions taken based on the information contained herein.

Reproduction or redistribution of this document, in whole or in part, must include acknowledgement of Agriculture and Agri-Food Canada as the owner of the copyright in the document, through a reference citing AAFC, the title of the document and the year. Where the reproduction or redistribution includes data from this document, it must also include an acknowledgement of the specific data source(s), as noted in this document.

Agriculture and Agri-Food Canada provides this document and other report services to agriculture and food industry clients free of charge.

Report a problem on this page
Please select all that apply:

Date modified: