Open to Imports

OTA estimates total organic market consumer sales of New Zealand at about $140 million USD per year.

  • The total market size for organic packaged food and beverages in New Zealand in 2015 is US$115.9mn, making it the 22nd largest market in the world by value.
  • Per capita spending on organic packaged food and beverages in New Zealand is US$25.5, which ranks as the 15th largest spending per capita in the world.
  • The largest company by sales in organic packaged food and beverages is Fronterra Co-operative Group, which maintains 13.3% of total sales. It is followed by Wilmar International Ltd and Ceres Enterprises Ltd.
  • Organic packaged food and beverages in New Zealand will see moderate year-on-year growth of close to 6% in 2015, on par with the rest of the Australasia region.
  • New Zealand maintains a market size for organic packaged food and beverages of US$115.9mn in 2015, which is 0.3% of global category sales.
  • Within the Australasia region, only Australia surpasses New Zealand in total value sales of organic packaged food and beverages.
  • New Zealand will experience moderate forecast growth of sales of organic packaged food and beverages, at 6.4% from 2015–2020.

QUALITATIVE ANALYSIS

Quick Facts

  • The total market size for organic packaged food and beverages in New Zealand in 2015 is US$115.9mn, making it the 22nd largest market in the world by value.
  • Organic packaged food and beverages have made their way beyond the shelves of local cafes into more mainstream channels, often owned by and found next to major retail brands on grocery store shelves.
  • Consumer awareness of the health and environmental benefits of organic offerings is expected to increase significantly during the forecast period, contributing to sales value growth.

Market Trends

Competitive Landscape

  • Despite Fonterra Brands’ and Asahi Beverages’ category leadership, the organic packaged food and beverage landscape is highly fragmented, with “Other” competitors constituting significant portions of each category’s market share.
  • Category captains and competitors alike have diversified product offerings, with a wide array of organic items across the pricing spectrum, from standard to premium. 
  • Private-label organic brands have failed to erode branded organic product sales, with strong domestic brands like Asahi’s Phoenix brand and Ceres Enterprises’ Ceres Organics gaining ground in the marketplace. 

Prospects and Growth Opportunity

  • Consumer awareness of the health and environmental benefits of organic offerings is expected to increase significantly during the forecast period, contributing to sales value growth. 
  • Major brands are expected to gain category share through new product development. Fonterra Co-operative Group, for example, can leverage its organic milk supply to make products for both domestic and (more profitable) Asian markets. 
  • New category players are expected to enter via new product development in the coming years, entering into a market with strong demand for new items. 

General Health & Wellness Trends

General Economic & Demographic Landscape

Economy: 

  • New Zealand’s economy has been improving in recent years, driven by thriving agricultural exports and rebuilding initiatives. 
  • Strong immigration rates, manufacturing, and construction contributed to 3.2% GDP growth in 2015. 
  • Exports, notably of animals and animal products, represented 21.2% of GDP in 2015.
  • A new free trade agreement with China, New Zealand’s core trade partner, should further boost exports to China up to 40% per year. 
  • Medium-term growth rates are projected to average 2.5% per year as the negative effects of El Niño wane. 
  • A major downturn within the Chinese economy, high levels of household debt, an export mix overly dependent on a small number of producers, and an aging population are threats to New Zealand’s continued economic growth. 

Population demographics: 

  • New Zealand’s population reached 4.6 million in 2015, an increase of 700,000 since 2000. 
  • Aging is occurring at an increasing, though still moderate, rate. The median age is projected to rise from 37.3 years in 2015 to 40.1 years in 2030.
  • Net migration is a major driver of population increases, with 1 in 4 New Zealand residents born overseas. 

Income & expenditure: 

  • New Zealand currently ranks 19th in the world in disposable income, just ahead of the Netherlands and Ireland. 
  • In 2015 per capita disposable income was US$21,285. 
  • Consumer expenditure will remain high, growing at an annual rate of 2.4% per year through 2030. 
  • Education will be the fastest growing expenditure category through 2030 due to growing demand for private education. Expenditure on hotels and communications industries will also grow rapidly over this period.

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

Data type

2012

2013

2014

2015

2016

2017

2018

CAGR
(12-15)

CAGR
(15-18)

                   

Health & wellness products consumption

2,205.0

2,267.4

2,368.5

2,459.7

2,519.6

2,577.3

2,636.8

3.7%

2.3%

Organic packaged food and beverages consumption

91.1

98.8

107.4

115.9

123.3

131.4

140.2

8.4%

6.6%

Organic packaged food consumption

81.4

88.0

95.4

102.8

109.2

116.3

124.0

8.1%

6.4%

Organic beverages consumption

9.7

10.8

12.0

13.1

14.1

15.1

16.2

10.5%

7.3%

Organic packaged food and beverages consumption as a % of total health & wellness products consumption

4.1%

4.4%

4.5%

4.7%

4.9%

5.1%

5.3%

-

-

Economic & demographic data

Data type

2012

2013

2014

2015

2016

2017

2018

               

Total population

4.4

4.5

4.5

4.6

4.6

4.6

4.7

% Middle and upper class of total population

36.6%

36.4%

36.3%

36.2%

36.1%

36.0%

36.0%

% Population aged 65+

13.8%

14.2%

14.6%

15.0%

15.3%

15.7%

16.0%

% Population aged 0-14

20.1%

19.9%

19.8%

19.6%

19.4%

19.3%

19.1%

% Population with higher education degrees

24.8%

25.4%

26.0%

26.6%

27.1%

27.6%

28.1%

Average number of children per household

0.7

0.7

0.7

0.7

0.7

0.7

0.7

GDP per capita

33,545.1

34,001.7

35,750.7

36,705.6

37,442.5

37,982.5

38,550.6

Consumer expenditure per capita (US$)

19,457.2

19,920.2

20,394.8

20,877.5

21,270.4

21,599.7

21,899.6

Consumer expenditure per capita on food and non-alcoholic beverages (US$)

3,052.9

3,039.9

3,088.6

3,114.5

3,129.7

3,148.0

3,159.6

Retailer & urban area data

Data category

Rank

Urban Area/retailer

Population
(mns)

       

Top urban areas by population (2015)

1

Auckland

1.5

Top urban areas by population (2015)

2

Wellington

0.4

Top urban areas by population (2015)

3

Christchurch

0.4

Top urban areas by population (2015)

4

Hamilton

0.2

Top urban areas by population (2015)

5

Napier-Hastings

0.1

Top grocery retailers by sales (2015)

1

Countdown

-

Top grocery retailers by sales (2015)

2

PAK'nSAVE

-

Top grocery retailers by sales (2015)

3

New World

-

Top grocery retailers by sales (2015)

4

PAK'nSAVE

-

Top grocery retailers by sales (2015)

5

New World

-

USDA GATS data

Rank

2015

2014

2013

2012

1

Peach

Oranges

Strawberries

Strawberries

2

Limes

Lemons

Peppers

Cherry Tomatoes

3

Lemons

Onions

 

Onions

4

Grapefruit

Carrots

 

Lemons

5

Pears

 

 

Apples

Policy Information

Government Agency(s)/Competent Authority

Authorized Government Agency(s): 

New Zealand Food Safety Authority NZFSA

Agency(s) Contact Information: 

New Zealand Food Safety Authority
68-86 Jervois Quay
PO Box 2835
Wellington
New Zealand
Telephone: +64 4 894 2500
Fax: +64 4 894 2501
Website

Organic Regulations and/or Standards

Name(s) of Regulation and/or Standard: 

Date of Implementation: 

2003

Regulation and/or Standard Scope: 

New Zealand has a voluntary standard, developed by Standards New Zealand, with certifiers measuring whether a product is organic either against this or (more commonly) against stricter standards set down by their own organizations.

Imported Products Requirements

Imported Products: 

Organic products imported for sale are controlled through the Fair Trading Act, which requires truthful and non-misleading representations of the products, and a way to demonstrate that an organic product was produced organically. Importing organic products for use as ingredients in products which are then exported under the Official Organic Assurance Programme (OOAP) must be certified organic by an appropriate body and be able to be verified as organic, and the importer must be registered with a recognised Third Party Agency (TPA).

Certification and Accreditation

Certification: 

New Zealand Food Safety Authority keeps list of certification agents and other organic organizations.

Accreditation: 

The 2 accreditation bodies that operate in New Zealand are:

  • International Accreditation New Zealand (IANZ)
  • Joint Accreditation System of Australia and New Zealand (JAS-ANZ).

The US and New Zealand have a recognition agreement, which allows New Zealand to accredit certifying agents in its country. 

Additional Information

Additional Information: 

On the third country list of the European Union.

USDA's GAIN Report New Zealand Food and Agricultural Import Regulations and Standards - Narrative (2016)
USDA's GAIN Report New Zealand Exporter Guide (2016)

 

Definitions

Review definitions of terminology included in this website.