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Quick Stats

Quick Stats

Organics Dashboard From Passport

  • Wilmar International Ltd leads the organic segment in New Zealand with a value share of 16.1% in 2019, followed by Fonterra Cooperative Group Ltd with a share of 9.7% and Ceres Enterprises Ltd with a share of 6.8%.
  • The outlook for organic products in New Zealand is slow, with YoY value growth rates expected to slow down over the forecast period 2019-2024. However, the growth is expected to remain higher than growth in Australasia as well as the global growth rate.

  • Organic products in New Zealand represent roughly 0.3% of global demand and approximately 19.0% of the value in the Australasia region, recording a per capita expenditure of US$32.7 in 2019.
  • With demand for organic products expected to grow as organic products become cheaper and more accessible in the long term, organic packaged food and beverages are expected to record strong growth, registering a forecast CAGR of 9.4% for the period 2019-2024.
Qualitative Analysis

Qualitative Analysis

Quick Facts
  • Organic packaged food and beverages in New Zealand witnessed a current value growth of 10.6% for the period 2018-2019 to record a market size of US$161.0 mn in 2019.
  • Growth in organic packaged food was led by Organic baby food, which recorded value growth of 15.0% in 2019
  • Organic beverages recorded value growth of 7.0% in 2019 to reach US$23.2 mn. However, growth was mainly driven by an average unit price increase of 12.0% in 2019.
Market Trends
  • Consumers in New Zealand are increasingly becoming health-conscious, leading to a rise in demand for healthy foods and beverages. However, despite strong growth, organic beverages remain a niche area, with many consumers not convinced about the benefits of consuming organic beverages, as well as being wary of their high prices.
  • Within packaged food, organic products are witnessing a rise in demand, as consumers increasingly opt to consume healthier variants within specific product categories such as pasta, nuts and savory snacks. In fact, organic savory snacks are expected to occupy a significant portion of retail shelf space, with an anticipated CAGR of 7.3% for the forecast period 2019-2024.
Competitive Landscape
  • Goodman Fields New Zealand Ltd leads sales of organic packaged food. The company continued to increase its value share from 18.5% in 2018 to 18.8% in 2019, due to the combined value share of its Naturalea, Meadow Fresh and Puhoi Valley organic offerings and Anchor Organic range of milk products. Furthermore, with strong product development, Goodman is expected to drive growth for organic packaged food over 2019-2014, competing with local players such as Lewis Road Cremery, one of the major local dairy boutiques in New Zealand.
  • One of the largest organic manufacturers in New Zealand, Ceres Organics, is set to increase its product line from spreads, sauces, breakfast mixes and cooking ingredients to bring more organic foods such as breakfast bars, in line with growing demand. The firm has been increasing year-on-year and is named sponsors of the Organics Aotearoa New Zealand (OANZ) Market Report, which is the major industry voice for organic foods.
  • Jacobs Douwe Egberts continued to retain its overall share in organic beverages, which stood at 35.2% in 2019, due to its position in organic coffee, achieved thanks to the popularity of its Hummingbird brand. Sourcing only organic or fair trade organic beans supports the company’s position, which is the biggest contributor to organic beverages. However, the company is witnessing a decline in share in 2019, as a result of competition from coffee brands L'affare, and Havana Coffee Works.
Prospects And Growth Opportunity
  • Organic coffee, particularly fresh coffee is a category that is expected to continue recording strong growth, with a forecast CAGR of 5.5% for the period 2019-2024. The entry of Macro Organic coffee, a private label offered by Progressive Enterprises is leading to organic coffee becoming more affordable, encouraging many niche brands in fresh coffee to develop and incorporate organic products as part of their portfolios. This trend is expected to continue to provide a strong point of difference in terms of positioning, along with fair trade ethical branding, resulting in an overall increase in demand for organic products over the forecast period 2019-2024.
  • Organic packaged food exhibited strong value sales growth of US$137.7 mn in 2019 and expected to continue growing over the forecast period. Moreover, distribution and share for organic products continued to record growth, improving accessibility as more supermarkets stocked organic packaged foods. This increase in availability was driven by a rise in consumer demand for organic alternatives, as more consumers are concerned about their nutrition. New product development activity is expected to increase over the forecast period 2019-2024; thus, developing distribution is expected to lead to pressure on value sales growth of organic products, as they become more mainstream.
  • While organic snacks recorded positive growth of 9.5% for the period 2018-2019, a key category expected to witness a rise in demand is organic baby food, with a forecast CAGR of 10.6% for the period 2019-2024, as parents are increasingly focused on providing the best nutrition possible for their children. Organic baby food players such as Only Organic have consistently retained their position in the landscape, through the introduction of new ranges like Strawberry Rice Cakes and Ancient Grains Risotto.
General Health And Wellness Trends
  • Organic products in New Zealand are associated with health and wellness among consumers. Yet, there is a difficulty in convincing them of the benefits offered, especially for organic beverages. For volume sales to witness a substantial rise, there is a need for more affordable organic options spanning a variety of categories aside from organic coffee, such as organic juices, allowing organic beverages to appeal to a wider audience.
  • Organic tea is witnessing a rise in demand, as fair trade becomes a strong positioning factor in tea, particularly within green tea. Additionally, Organic tea Kombucha will be a product to watch over the forecast period 2019-2024, with an increasing range of drinks from Remedy, Amplify and Lo Bros.
  • With the increasing popularity of organic savory snacks, organic nuts are witnessing a particular rise in demand, as consumers are attracted towards their specific perceived health benefits. For example, Zesti crunchy sunflower snacks, which claim to be a good source of protein, low in sugar, vegan-friendly and certified organic are becoming a popular snack option. Overall, organic snacks are expected to continue gaining popularity over the forecast period.
General Economics And Demographic Landscape

Economy:

  • The economy of New Zealand witnessed moderate growth of 2.8% in 2019 as the recent monetary policy allowed for an increase in government spending and helped lift domestic demand.
  • Private Consumption witnessed a slowdown as migration seen a decline and financial support for families faded.
  • The economy is expected to witness moderate growth in the coming years, with GDP growth expected to be 2.2% in 2020, averaging about 2.0% per year by 2026.
     

 Population demographics:

  • The population of New Zealand reached 4.8 million in 2018, increasing by 993,000 since 2000. The median age in New Zealand reached 36.9 years in 2018, rising from its 2000 value of 34.2 years. Although the median age has increased, the pace of ageing is expected to slow down with the median age reaching 39.3 years in 2030.
  • The proportion of the population over the age of 65 years represented about 15.0% of the population in 2018. This figure is expected to reach to about 20.0% by 2030.
  • The fertility rate in New Zealand has been stable over time, with approximately 1.8 births per female per year at present. This is not expected to change over the foreseeable future, as the majority of women choose to have children, but with a preference for smaller families.
     

Income & expenditure:

  • The savings ratio in New Zealand was at 1.1% of disposable income in 2018, with the rate falling to 1.0% in 2019.
  • Consumer expenditure per capita was recorded at US$25,691 in 2018, with the indicator increasing by 1.1% in 2019. Education and Catering are expected to witness the highest consumer expenditure for the period 2019-2030. For the same period, total consumer expenditure, which represented 63.2% of GDP in 2019, is expected to witness a cumulative increase of 25.7% for that period, averaging about 25.7% annually.
  • Disposable income per capita amounted to US$24,055 in 2018, with the indicator recording an increase of 1.4% in 2019. For the period 2019-2030, disposable income is expected to witness a cumulative growth of 27.4% in real terms, at an annual rate of 2.2%.
Data

Data

Organic Packaged Food And Beverage Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

CAGR
(16-19)

CAGR
(20-22)

Health & wellness products consumption

USD million

1,905.9

1,984.1

2,063.1

2,146.5

2,200.9

2,258.7

2,318.6

4.0%

2.6%

Organic packaged food and beverages consumption

USD million

119.8

132.2

145.5

161.0

176.4

193.3

211.4

10.4%

9.5%

Organic packaged food consumption

USD million

101.2

112.1

123.8

137.7

152.1

167.7

184.9

10.8%

10.3%

Organic beverages consumption

USD million

18.6

20.1

21.8

23.2

24.4

25.5

26.6

7.6%

4.4%

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

%

6.3%

6.7%

7.1%

7.5%

8.0%

8.6%

9.1%

-

-

Economic And Demographic Data

Data type

Unit

2016

2017

2018

2019

2020

2021

2022

Total population

million

4.6

4.7

4.8

4.9

5.0

5.1

5.1

% Middle and upper class of total population

%

24.5

24.5

24.5

24.4

24.4

24.4

24.4

% Population aged 65+

%

14.8%

15.0%

15.2%

15.5%

15.8%

16.2%

16.6%

% Population aged 0-14

%

19.7%

19.5%

19.4%

19.3%

19.2%

19.1%

19.0%

% Population with higher education degrees

%

19.6

20.1

20.5

20.8

21.2

21.5

21.8

Average number of children per household

children

0.7

0.7

0.7

0.7

0.6

0.6

0.6

GDP per capita

USD per capita

36,076.6

37,524.6

39,317.0

40,225.1

40,587.3

41,074.8

41,598.8

Consumer expenditure per capita (US$)

USD per capita

22,877.2

23,937.1

24,541.8

25,236.2

25,586.5

25,882.5

26,206.1

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

USD per capita

3,134.4

3,274.4

3,313.2

3,346.8

3,390.3

3,419.1

3,457.4

Retailer And City Data

Top 5 Cities By Population

Data category

Rank

City/retailer

Population
(millions)

Top cities by population (2019)

1

Auckland

1.7

Top cities by population (2019)

2

Wellington

0.4

Top cities by population (2019)

3

Christchurch

0.4

Top cities by population (2019)

4

Hamilton

0.2

Top cities by population (2019)

5

Tauranga

0.1

Top 5 Grocery Retailers By Sales

Data category

Rank

City/retailer

Top grocery retailers by sales (2019)

1

Foodstuffs (NZ) Ltd

Top grocery retailers by sales (2019)

2

Woolworths Ltd (Australia)

Top grocery retailers by sales (2019)

3

British Petroleum Co Plc, The

Top grocery retailers by sales (2019)

4

Z Energy Ltd

Top grocery retailers by sales (2019)

5

Exxon Mobil Corp

United States Department Of Agriculture Global Agricultural Trade System Data

Top 5 Export Commodities To New Zealand

Year

Country

Rank of
Product/Commodity

Product/Commodity

Export Value (US$)

2019

New Zealand

1

Organic Onion Sets Fr/Ch

409,852

2019

New Zealand

2

Organic Vinegar and Substitutes

352,521

2019

New Zealand

3

Organic Grapes Fresh

192,126

2019

New Zealand

4

Organic Carrots Fr/Ch

98,975

2019

New Zealand

5

Organic Cult Blueberries Fresh

78,120

2019

New Zealand

Total

Total Organics*

1,279,567

2018

New Zealand

1

Organic Vinegar and Substitutes

291,297

2018

New Zealand

2

Organic Carrots Fr/Ch

113,400

2018

New Zealand

3

Organic Celery Fr/Ch

59,583

2018

New Zealand

4

Organic Cherries Fresh

53,952

2018

New Zealand

5

Organic Grapes Fresh

52,118

2018

New Zealand

Total

Total Organics*

660,440

2017

New Zealand

1

Organic Carrots Fr/Ch

85,475

2017

New Zealand

2

Organic Grapes Fresh

43,344

2017

New Zealand

3

Organic Cherries Fresh

35,040

2017

New Zealand

4

Organic Onion Sets Fr/Ch

26,150

2017

New Zealand

5

Organic Lettuce Not Head Fr/Ch

12,950

2017

New Zealand

Total

Total Organics*

206,545

2016

New Zealand

1

Organic Grapes Fresh

159,900

2016

New Zealand

2

Organic Carrots Fr/Ch

28,000

2016

New Zealand

3

Organic Lemons Fr/Dr

21,000

2016

New Zealand

4

Organic Lettuce Not Head Fr/Ch

16,590

2016

New Zealand

5

Organic Cherries Fresh

9,600

2016

New Zealand

Total

Total Organics*

235,090


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

Definitions

Term

Definition

Health and Wellness

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.

Organic packaged foods and beverages

This category includes packaged food & beverages that are certified organic by an approved certification body. Organic production is based on:

• A system of farming that maintains and replenishes soil fertility without the use of toxic and persistent pesticides and fertilizers.
• Organic food & beverages are minimally processed without artificial ingredients, preservatives or irradiation.
• The use of GMOs (Genetically Modified Organism) is prohibited. “Certified Organic” means the item has been grown according to strict uniform standards that are verified by independent state or private organizations.
• Depending on the country, such products are called ‘organic’, ‘biological’ or ‘ecological’: For organic products to be included under Euromonitor definitions, the organic aspect needs to form part of positioning/marketing of the product. This is an aggregation of organic baby food, bakery, confectionery, dairy, ice cream, oils and fats, ready meals, rice, sauces, dressings and condiments, snack bars, soups, spreads, sweet and savory snacks and other organic food.

Note that fresh food products or individual ingredients are not included in this definition.

Compound annual growth rate (CAGR)

The compound annual growth rate (CAGR) is the average annual growth rate over a specified period of time. For instance, the CAGR consumption of from 2016 – 2019 will be the average growth rates across these three years.

USDA GATS data clarification

The data presented in table 2.4 represents the dollar values of the top 5 organic commodities as well as of the total organic exports of the trade partner for the period 2016-2019 as per the United States Department of Agriculture’s Global Agricultural Trade System, a database consisting of international agricultural, fish, forest and textile products trade statistics dating from the inception of the Harmonized coding system in 1989 to present.

Policy information

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:

NZFSA Technical Rules for Organic Production (.pdf download)

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.

New requirements for exporting organic products from New Zealand were initiated December 2, 2019.  The two new consolidated documents, Organic Export Requirement: Operator Production Rules (OER: OPR);  and Organic Export Requirement Recognised Agencies and Persons (OER: RAP) replace 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 (European Union, Japan, Switzerland, Taiwan and the United States of America, and China (pending implementation). Operations have 21 months to transition to the new 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

On the third country list of the European Union.

USDA's GAIN Report New Zealand Food and Agricultural Import Regulations and Standards Country Report (2020)
USDA's GAIN Report New Zealand Food and Agricultural Import Regulations and Standards - Narrative (2016)
USDA's GAIN Report Food and Agricultural Import Regulations and Standards Export Certificate Report (2020)
USDA's GAIN Report Retail Foods (2020)
​​​​​​​USDA's GAIN Report New Zealand Exporter Guide (2019)
USDA's GAIN Report New Zealand Food Service - Hotel Restaurant Institutional (2019)
USDA's GAIN Report New Zealand Food Processing Ingredients (2020)
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)