This article first appeared in Natural Products Global, part of Diversified’s global natural & organic network. Written by Jim Manson.

The New Zealand organic sector has grown 30 per cent since 2015 to now be worth $600 million per year, buoyed by consumer demand in NZ and globally.

The 2018 OANZ Organic Market Report, shows retail sales of organic products are growing twice as fast as conventional products, up 8.8% to $245 million.

Independent research in the report shows that eight out of 10 Kiwi consumers are buying organic fresh, frozen or packaged food and beauty products at least fortnightly. Just under half (48%) say they purchase organic products because they are concerned for the environment and sustainability.

Exports too are booming, up 42 per cent since 2015 to $355 million.

“The 2018 report findings reporting market growth of 15 per cent a year tell us loud and clear that opportunity lies before us,” says OANZ CEO, Brendan Hoare. “The world wants what New Zealand has to offer, and we have the capability to grow our share of the global market where the organic food segment alone is worth EUR85b and is growing at 10.5 per cent a year.”

The report presents the latest research on the New Zealand organic sector’s size, growth, trends, perceptions, challenges and opportunities across the value chain, looks at how we are tracking globally and also investigates the multiple benefits of organic production from a True Cost Accounting point of view.

Headline findings

• The total market value of the NZ organic market grew 30% (+NZ$139m) between 2015-17 to be worth NZ$600m
• Market split: Export 60% (NZ$355m), Domestic 40% (NZ$245m)
• The domestic (NZ) organic market grew twice as fast as conventional (8.1% per year compared to 4.8%)
• Supermarkets accounted for NZ$216m of sales, while specialist stores taking NZ$30m
• Nearly 80% of New Zealanders purchase organic products at least fortnightly
• 67% of consumers polled said the main reason for choosing organic was to ‘look after my own and my family’s health’.

 

About the author: Jim Mason

Jim Manson is editor-in-chief of Diversified Communications UK‘s natural and organic publishing portfolio. He’s written widely on environment and development issues for specialist magazines and national media, including the Financial Times, The Guardian, The Times, and World Bank Urban Age.

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