• Wilmar International Ltd leads the organic segment in New Zealand with a value share of 16.5% in 2021, followed by Fonterra Cooperative Group Ltd with a share of 10.1% and Lewis Road Creamery Ltd with a share of 6.9%.
• The outlook for organic products in New Zealand is solid, with value CAGR expected to stand at 4.5% forecast period 2021-2026, which is above that of the Australasia region.

• Organic products in New Zealand represent roughly 0.3% of global demand and approximately 18% of the value in the Australasia region, recording a per capita expenditure of US$37.38 in 2021. 
• With demand for organic products expected to grow as they become cheaper and more accessible in the long term, organic packaged food and beverages are expected to record solid growth, registering a forecast CAGR of 4.5% for the period 2021-2026.

• Retail value sales of organic packaged food and beverages increased by 4.9% in current terms in 2021 to US$190.9 million.
• Growth in organic packaged food was fuelled by organic dairy, which accounts for over half the market and recorded a 5.3% expansion in 2021.
• Retail value sales of organic beverages rose by 10.5% in current terms in 2021 to US$30.2 million, fuelled by organic hot drinks, which accounted for 70% of the market and recorded a 15.4% expansion in 2021.

• The Covid-19 pandemic accelerated the health and wellness trend in New Zealand and consumers opted for healthier products and organic ingredients. The pandemic also triggered a rise in home cooking as consumers spent less time out socialising. Due to its versatility and relative ease of preparation, pasta was a popular dish prepared at home by consumers and demand rose for organic pasta. Organic rice, pasta and noodles witnessed a 4.5% expansion over 2020-2021. Organic pasta is perceived as natural, chemical-free, and healthier for the family. 
• Another reason for the boost in organic products (including pasta) is the reduced environmental impact these products have. Many consumers are becoming increasingly environmentally conscious and are therefore looking for products with a smaller environmental footprint. There are also organic pasta products made for those with certain dietary intolerances, such as Macro Organic Pasta - Spirals (made from organic durum wheat and vegan friendly), Ceres Organic Quinoa Rice Spaghetti, and Explore Cuisine Organic Gluten Free Edamame and Mung Bean Fettuccine.
• Organic beverages were the top performing category within health and wellness beverages in New Zealand in 2021, achieving double-digit retail value growth. Affluent millennials are the key consumer base for organic beverages. As such, brands which are successful in the category, have been successful in marketing directly to this key group. For example, Remedy Drinks leverages effective digital marketing and social media strategies to grow demand and sales in this group. RTD tea and coffee were fast growing categories within organic beverages during the pandemic as consumers, particularly millennials and gen z, consumed coffee in the morning before online university or work and green/fruit/herbal tea afterwards to wind down and for its health and sleep benefits. However, organic beverages have a higher price point and thus demand mostly rose from affluent consumer groups.

• Goodman Fielder New Zealand Ltd was the leading player in organic packaged food in 2021, capturing a retail value share of 19.6%, followed by Fonterra Brands (NZ) Ltd with a share of 12.0%. Organic bread witnessed an 8.8% expansion over 2019-2021, triggered by the worldwide trend spread through social media of baking bread at home during the first lockdown in 2020. Organic bread varieties continued to gain popularity in New Zealand in 2021 as it is perceived as healthier, safer, and more natural to consume. Consumers are becoming increasingly concerned about the synthetic chemicals found in normal bread bought at the supermarket, driving them to purchase organic variants, often from small independent bakers. Manufacturers are noting this and developing their products to match consumer needs. For example, Purebread continues to produce organic potato bread and organic focaccia varieties to meet the increasing demand for chemical-free, healthier organic products. 
• Organic rice is also seeing increasing sales in New Zealand as rising disposable income and growing awareness about healthy eating are driving consumer interest. Organic long-grain, medium-grain, and premium varieties such as Jasberry and red rice were the most popular in 2021. Social media content, TV advertisements and cooking blogs are contributing to the category’s growing popularity with products such as Jasberry Organic’s Jasberry rice and Ceres Organics’ Organic red rice set to fare well from this trend.
• Jacobs Douwe Egberts NZ was the leading player in organic beverages in 2021, with a retail value share of 33%, due to the popularity of its brand, Hummingbird (JDE Peet’s BV). Organic trends are prevalent across the entirety of FMCG in New Zealand, with consumers increasingly conscious of the ingredients they are putting in their bodies. This is leading to greater awareness of product labelling with consumers seeking out certain attributes and avoiding others. For example, the use of artificial ingredients and flavourings has emerged as a growing pain in the category, with consumers preferring naturally healthy ingredients wherever possible. This has enabled local players such as Arepa and Phoric, who use locally sourced organic ingredients, to gain traction and improve their share in the category. 
• Historically, health and wellness innovation has focused on reduced sugar variants through the use of artificial sweeteners. However, despite the emergence of niche local brands in response to consumer preference shifts, they are unlikely to deliver significant sales volumes in the category due to their undeveloped presence and logistics infrastructure. Given their major presence in other health and wellness categories in New Zealand, great opportunities exist for players such as V and Red Bull to deliver new product formulations to leverage these trends.

• Against the backdrop of an accelerated health and wellness trend, organic packaged food is forecast a 4.2% CAGR over the period 2022-25 as consumers increasingly look for healthier options in general. Over the forecast period, meat production companies are expected to continue focusing on their premium product lines, such as organic meat, to attract a reducing consumer base. With the proportion of vegan, vegetarian, and flexitarian consumers growing in the country, meat sales are decreasing. For those who enjoy meat, but want to purchase responsibly, organic meat is a viable choice as it addresses two of the main issues associated with red meat consumption: animal welfare and the industry's environmental impact. 
• Attributes such as grass fed, free-range, and endorsement by organic certificates are important in this category with consumers increasingly searching the packaging for these claims. In addition, consumers may favour organic meat as it is perceived as safer for consumption because it is free from growth hormones or chemicals. With health and environmental trends only expected to rise in the coming years, organic meat will continue to benefit from its reputation and see rising sales. Players with an existing presence in this category, such as New Zealand Organic Meats Limited are thus well-placed to capitalise on this trend and see rising shares.
• Demand for organic noodles is also forecast to increase, in line with the overall category of organic packaged goods. Research from Organics Aotearoa New Zealand found that more than 80% of New Zealanders purchase organic products at least fortnightly, with this number set to rise in the coming years. The demand for organic noodles is rising due to exposure from social media, cooking blogs, and television programmes/adverts with organic products (including organic noodles) being featured more often. In addition, the fact that organic noodles are considered more natural, healthier, and safer for consumption than traditional noodles are also helping sales. Similarly, increasing disposable incomes and growing awareness about the importance of a healthy diet are expected to continue driving demand for organic muesli and granola in the coming years, led by key products such as Yum Original Granola and Ceres Organic Bircher Original Muesli. Organic products tend to be more expensive than standard products, but consumers are willing to pay for this as they consider such products healthier, safer, and better for the environment.
• Organic beverages are forecast to display a CAGR of 6.3% over 2022-25. Increased emphasis will be placed on organic beverages, with consumers seeking natural products of more responsible origin. Both Frucor and Coca-Cola Amatil have organic juice brands and are expected to push these brands at the expense of their standard brands over the forecast period. They are also likely to investigate opportunities in other organic categories, such as RTD coffee and energy drinks.
• FMCG e-commerce is currently relatively underdeveloped in New Zealand and largely focused on the major supermarket channels. However, the increasing presence of millennial consumers who are more comfortable with online shopping is expected to further increase opportunities for these brands not only to sell to consumers via their own channel but also to gain presence on third-party e-commerce websites, as seen during the COVID-19 pandemic. This reduces the barriers to entry for local brands and could lead to greater fragmentation of the competitive landscape in the coming years.

• The health and wellness category is forecast to display a CAGR of 1.7% over 2022-25. Although sugar content characterised the health and wellness preferences of consumers over the review period, the Covid-19 pandemic brought functional benefits to the forefront of consumers’ purchase decisions. With similar concerns about immunity and general wellbeing likely to linger over the forecast period, fortified functional packaged food and beverages are likely to perform particularly well.
• Opportunities exist for players in the category to leverage immunity-boosting properties, as well as other functional health benefits that meet consumer demand and increase sales. In the pandemic, most workplaces in New Zealand adopted more flexible work policies, and in 2021, working from home has become more widespread. Though some may return to the office, this practice is anticipated to remain more common than it was in the review period. Thus, categories that previously benefited from strong on-trade demand, particularly organic coffee, will see a significant shift in sales from on-trade to off-trade over the forecast period. This will lead companies to invest in new product development to create products and formats that best target at-home consumption for the remote workforce. 
• Another emerging trend in 2021, was the growth in the number of alcohol-free brands and products. With health and wellness preferences growing in prominence, brands such as AF drinks have entered the landscape offering alcohol-free gin and tonics. Similarly, Pal’s (one of the leading local RTD spirits brands) introduced an alcohol-free product too. These emerging brands and products benefit from a strong social media presence and often position themselves as being low-calorie alternatives for those who do not want to drink alcohol. However, and perhaps more importantly, they promote themselves as healthier alternatives to sugary carbonates. As such, they are positioned to compete directly with health and wellness beverages.

Economy: 

• New Zealand’s GDP growth rebounded to 4.2% in 2021, following a 0.3% contraction in 2020. The economy is projected to expand 3.7% in 2022.
• Inflation accelerated to 3.9% in 2021 and is forecast to average 3.5% across 2022.
• Investment in New Zealand’s economy is expected to reach record highs, as the country’s economic stability promises a favourable investment environment over 2021-2040.

Population demographics: 

• The population of New Zealand rose to 5.1 million in 2021, from 5.0 million in 2020, and is expected to rise to 5.3 million by 2025.
• Those aged 65+ accounted for 15.8% of the total population in 2020, and this proportion is expected to grow to 17.4% in 2025 and 22.8% in 2040, increasing the need for healthcare and social spending. However, the number of young people that immigrate to New Zealand is growing and is expected to at least partly fund the increase in social spending.
• The median age in 2021 was recorded at an all-time high 38 years. This is further expected to increase to 38.9 years by 2025 and exceed 40 after that. 

Income & expenditure: 

• Per capita gross income in New Zealand is forecast to increase by 30.4% in real terms over 2021-2040.
• Over the 2020-2030 period, New Zealand is projected to increase by three positions and rank 34th out of 84 countries in Euromonitor International’s Wealth Index. Housing is forecast to be the largest consumer spending category in 2040, while transport will record the fastest growth over 2021-2040.
• Income inequality is expected to increase over the long term and remain high by global standards.

[1] Health and Wellness Definition: Health and wellness is the aggregation of organic packaged food and beverages, fortified/functional packaged food and beverages, naturally healthy packaged food and beverages, better for you packaged food and beverages and food intolerance products. The above definition and more can be referenced from the definitions table at the end of the report.

Top 5 Cities By Population

Top 5 Grocery Retailers By Sales

Top 5 Export Commodities To New Zealand

Note : Total organics is the sum of all exports in a particular year  

Authorized Government Agency(s):

Ministry for Primary Industries
New Zealand Food Safety Assurance Directorate

Agency(s) Contact Information:

Charles Fergusson Building
34-38 Bowen St
Pipitea
Wellington
New Zealand

PO Box 2526
Wellington 6140

Telephone +64 4 830 1574
Email: info@mpi.govt.nz
Website

Name(s) of Regulation and/or Standard:

NZFSA Technical Rules for Organic Production (.pdf download)

NZFSA Technical Rules are out of date.  An Organic Products Bill for domestic production is in the legislative process, draft completed in 2020, and public consultation on the Proposal for regulating organic business was open for comment in 2021. Until the legislation and regulations are finalized to sell products labelled as organic in New Zealand you must:

• Comply with the Fair Trading Act 1986  in respect to using the term “organic” in labelling and marketing claims, and
• Meet the specific requirements for your type of food products 

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.

Date of Implementation: 2003

Regulation and/or Standard Scope:

Organic Exports
New requirements for exporting organic products from New Zealand were initiated December 2, 2019.  Organic Export Requirement: Operator Production Rules (OER:OPR) replaces the previous Official Organic Assurance Program standards documents.  These requirements apply only to the export of organic products to markets where New Zealand has negotiated an organic trading arrangement: China, European Union and Northern Ireland, Japan, Switzerland, and United States.

• Organic Export Requirement: European Union Overseas Market Access Requirements
• Organic Export Requirement: Great Britain Overseas Market Access Requirements
• Overseas Market Access Requirements Japan: Organic products
• Overseas Market Access Requirements Switzerland: Organic products
• Organic Export Requirement: Taiwan Overseas Market Access Requirements 
• Organic Export Requirement: USA Overseas Market Access Requirements 

Exporters of organic products must register with Ministry of Primary Industries (MPI) and complete a form to register organic consignments and apply for a certificate.

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).

Steps to importing organic products

Certification:

Recognized agencies (Ras) are organic certification bodies that are recognized by Ministry of Primary Industries (MPI) according to Requirements for Recognized Agencies and Persons.

MPI-recognized third party agency for organic certification:
AsureQuality 
BioGro New Zealand Ltd 

Certification agencies for New Zealand market:
The Bio Dynamic Farming and Gardening Association
Organic Farm NZ 

Accreditation:

The two accreditation bodies that operate in New Zealand are:
International Accreditation New Zealand (IANZ) and 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. 

New Zealand Organic Sector Strategy

New Zealand Importing Organics

U.S. International Trade Administration

USDA's GAIN Report New Zealand Food and Agricultural Import Regulations and Standards Country Report (2022)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2022)
USDA's GAIN Report Retail Foods (2022)
USDA's GAIN Report New Zealand Exporter Guide (2023)
USDA's GAIN Report New Zealand Food Service - Hotel Restaurant Institutional (2023)
USDA's GAIN Report New Zealand Food Processing Ingredients (2022)
USDA's GAIN Report Strong Demand in New Zealand for US Pet Food (2020)
USDA's GAIN Report New Zealand - a Key Market for US Fresh Fruit (2020)