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

Bruised: Organics and exports will bear fruit, but internal competition will keep profit earth-bound

The Fruit and Vegetable Wholesaling industry continues to thrive. Enduringly, consumers are seeking healthier food to augment their diets. The consistent demand for fruit and vegetables, both locally and internationally, has minimised wholesale bypass and facilitated the ongoing momentum that wholesalers are experiencing. Wholesalers are extremely susceptible to demand fluctuation from supermarkets and grocery stores, and accordingly, their expansion is benefitting industry performance. Alert Level 4 lockdowns stunted downstream demand from food service establishments, and wholesalers faced a difficult period selling to both local and international markets. As restrictions have eased, the largest driver of growth has been export markets. The continued recovery of domestic and foreign economic sectors has bolstered demand. Overall, wholesaler revenue rose at an annualised 2.0% over the five years through 2022-23, to $8.1 billion. This trend includes growth of only 0.3% in 2022-23, as production has been hammered by heavy frost damage and labour shortages. Industry operators wholesale fresh fruit and vegetables, including washed and packaged produce. Businesses that wholesale fruit and vegetables in conjunction with a variety of other grocery items are excluded from the industry. 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.