Open to Imports
  • The total market size for organic packaged food and beverages in New Zealand in 2017 is US$130.8mn, making it the 21st largest market in the world by value.
  • Per capita spending on organic packaged food and beverages in New Zealand is US$27.60, which ranks as the 15th largest spending per capita in the world.
  • The largest company by sales in organic packaged food and beverages is Fonterra Co-operative Group, which maintains 12.4% of total sales. It is followed by Wilmar International Ltd and Jacobs Douwe Egberts.
  • Organic packaged food and beverages in New Zealand will see strong year-on-year growth of close to 10% in 2018, which is nearly double the growth rate projected in the total Australasia region.
  • New Zealand maintains a market size for organic packaged food and beverages of US$130.8mn in 2017, 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 strong forecast growth of sales of organic packaged food and beverages, at a 9.3% CAGR from 2017–2022.

QUALITATIVE ANALYSIS

Quick Facts

  • The total market size for organic packaged food and beverages in New Zealand in 2017 is US$130.8mn, making it the 21st largest market in the world by value.
  • Organic packaged food and beverages are typically positioned as premium in NewZealand, but the increasing penetration of private label products is putting downward pressure on prices.
  • There is no legislated regulatory certification system for organic products in New Zealand. Products can become “certified organic” by adhering to international standards for production, processing and marketing. However, New Zealand’s government has indicated that it may institute a mandatory certification regime in the future.

Market Trends

Competitive Landscape

  • The organic packaged food and beverages landscape in New Zealand is fragmented and growing more competitive.
  • The New Zealand-based dairy company Fonterra Co-operative Group Ltd was the market leader in 2017 with a 12.4% value share, followed by Singapore-based Wilmar International Ltd with 10.6%.
  • Private label products accounted for 3.6% of sales value in 2017, up from 3.5% in 2016 and 1.1% in 2012.

Prospects and Growth Opportunity

  • Organic packaged food and beverages are projected to continue recording strong growth in the near term, driven by consumers’ increasing health and wellness concerns and new product launches.
  • The major factor affecting the market in recent years would be the establishment of a mandatory organic certification scheme, should the government choose to do so in coming years, potentially affecting the ease with which products can be labeled as organic and the overall shape of the market.
  • Among organic packaged food categories, dairy is projected to register particularly strong sales value growth in coming years, and coffee is projected to grow at one of the fastest rates among organic beverages categories.

General Health & Wellness Trends

General Economic & Demographic Landscape

Economy:

  • New Zealand’s economy is slowing but will continue to grow at a healthy pace.
  • Real GDP increased by 3.5% in 2017 and growth of 3.1% is expected in 2018.
  • Steady gains in private final consumption, strong migration inflows and a healthy export sector are driving growth.
  • Inflation was 1.9% in 2017 and is projected to remain at the same rate in 2018.
  • Unemployment was 4.8% in 2017 and will fall to 4.7% in 2018.

Population demographics:

  • New Zealand’s population reached 4.7 million in 2017, an increase of 890,000 since 2000.
  • The median age is projected to rise from 37.1 years in 2016 to 39.2 years in 2030.
  • Net migration is a major driver of population increases, with one-quarter of New Zealand residents born overseas.

Income & expenditure:

  • In 2017 per capita consumer expenditure totaled US$22,824 and is projected to grow by 1.3% in real terms in 2018.
  • Per capita disposable income in 2017 was US$22,027 and is projected to grow by 1.4% in real terms in 2018.
  • Education will be the fastest growing expenditure category through 2030, followed by clothing and footwear.

QUANTITATIVE ANALYSIS

Organic packaged food & beverage data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

CAGR
(14-17)

CAGR
(17-20)

 

 

 

 

 

 

 

 

 

 

 

Health & wellness products consumption

USD million

     2,102.9

     2,183.2

     2,259.5

     2,351.5

     2,429.0

     2,505.7

     2,583.0

3.8%

3.2%

Organic packaged food and beverages consumption

USD million

        101.0

        109.4

        119.3

        130.8

        142.9

        156.0

        170.4

9.0%

9.2%

Organic packaged food consumption

USD million

          85.0

          91.9

        100.3

        110.0

        120.7

        132.6

        145.8

9.0%

9.8%

Organic beverages consumption

USD million

          16.0

          17.5

          19.0

          20.8

          22.2

          23.4

          24.7

9.1%

5.9%

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

%

            0.0

            0.1

            0.1

            0.1

            0.1

            0.1

            0.1

-

-

Economic & demographic data

Data type

Unit

2014

2015

2016

2017

2018

2019

2020

 

 

 

 

 

 

 

 

 

Total population

million

            4.5

            4.6

            4.6

            4.7

            4.8

            4.9

            5.0

% Middle and upper class of total population

%

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

% Population aged 65+

%

            0.1

            0.1

            0.1

            0.2

            0.2

            0.2

            0.2

% Population aged 0-14

%

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

            0.2

% Population with higher education degrees

%

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

            0.3

Average number of children per household

children

            0.7

            0.7

            0.7

            0.7

            0.7

            0.7

            0.7

GDP per capita

USD per capita

   36,932.7

   37,790.1

   38,942.5

   40,469.7

   40,973.3

   41,341.2

   41,803.8

Consumer expenditure per capita (US$)

USD per capita

   21,839.8

   22,588.3

   23,219.0

   24,129.1

   24,240.4

   24,434.6

   24,674.8

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

USD per capita

     3,075.2

     3,181.4

     3,260.1

     3,382.8

     3,397.6

     3,426.8

     3,461.8

Retailer & City Data

Data category

Rank

City/retailer

Population
(mns)

 

 

 

 

Top cities by population (2017)

1

Auckland

             1.6

Top cities by population (2017)

2

Wellington

             0.4

Top cities by population (2017)

3

Christchurch

             0.4

Top cities by population (2017)

4

Hamilton

             0.2

Top cities by population (2017)

5

Tauranga

             0.1

Top grocery retailers by sales (2017)

1

Countdown

 -

Top grocery retailers by sales (2017)

2

PAK'nSAVE

 -

Top grocery retailers by sales (2017)

3

New World

 -

Top grocery retailers by sales (2017)

4

Four Square

 -

Top grocery retailers by sales (2017)

5

SuperValue

 -

USDA GATS data

Rank

2017

2016

2015

2014

  Export Value (US$, thousands)

1

Strawberries

Strawberries

Peach

415.0

Oranges

137.0

2

Cherry Tomatoes

Peppers

Limes

223.0

Lemons

85.0

3

Onions

26.0

-

Lemons

66.0

Onions

48.0

4

Lemons

-

Grapefruit

19.0

Carrots

25.0

5

Apples

-

Pears

11.0

-

Total

196.0

236.0

734.0

294.0

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)
USDA's GAIN Report New Zealand Food Service - Hotel Restaurant Institutional (2018)

 

Definitions

Review definitions of terminology included in this website.