Fruit and Vegetable Processing in New Zealand - Industry Market Research Report

Spread thin: Rising import penetration is jamming revenue growth opportunities

Fruit and vegetable processors have faced challenging operating conditions in recent years. Rising health consciousness has supported domestic consumption of fruit and vegetables. While this has benefited the industry, processors compete with fresh produce, a more nutritious option to frozen produce. That's why the benefits of rising health consciousness have been limited to products that are specifically promoted as healthy. A slump in demand from export markets and fierce competition from imports have weakened industry revenue. That's why industry revenue is expected to fall at an annualised 2.4% over the five years through 2022-23, to reach $1.5 billion. This includes an anticipated jump of 1.4% in 2022-23, as rising fruit and vegetable prices are passed on to consumers. Industry manufacturers primarily process fruit and vegetables into a range of goods, including sauces and condiments, soups, frozen and dehydrated fruits and vegetables, mixed meat and vegetable products, and non-dairy based baby foods. Processing methods include freezing, drying and dehydrating (excluding sun drying), pickling or otherwise preserving, bottling and canning. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.