Packaged food value growth remains positive in 2013
Value sales performance for packaged food was positive during 2013, increasing by 3%. Nonetheless, 2013 value growth was lower than the growth witnessed in 2012 and the CAGR over the review period. Higher value growth during the review period was in part due to the Goods and Services Tax (GST) increase which took place in October 2010. The New Zealand economy was in a state of recovery during 2013, which in turn drove both value and volume growth. Whilst consumers still faced discretionary spending pressures, more consumers began to relax spending habits and spend more on indulging themselves, as demonstrated by the 4% value growth seen within impulse and indulgence during 2013.
Cobranding and premiumisation characterise 2013
During 2013 a number of companies engaged in cobranding, including JH Whittakers & Sons and Cadbury Confectionery Ltd. Indeed, Cadbury Confectionery Ltd formed a partnership with Fonterra Brands (NZ) Ltd through the launch of Primo Pascall Pineapple Lumps in 2013. The new product combined Fonterra’s Primo (flavoured milk drink) and Cadbury’s Pascall Pineapple Lumps (chocolate bagged selfline/softline). Furthermore, New Zealand chocolate manufacturer JH Whittakers & Sons Ltd formed a cobranding agreement with Coca-Cola Amatil (NZ) Ltd in 2013 to offer a new L&P/Whittakers combination. The new product combined well-known New Zealand soft drink brand L&P and Whittakers chocolate.
Moreover, premiumisation was seen within several packaged food categories during 2013, particularly chocolate confectionery, yoghurt and ice cream. Premiumisation was seen through flavour innovation, for example the launch of yoghurt flavours such as Russian Fudge, Blood(y) Orange and Coconuts by Epicurean Dairy Holdings Ltd (through its The Collective brand). Premiumisation in these categories drove value growth in packaged food overall in 2013.
Goodman Fielder Ltd continues to lead packaged food in New Zealand
Company rankings remained the same during 2013, with Goodman Fielder New Zealand Ltd being ranked first. The company has lost value share over the review period, dropping by one percentage point between 2008 and 2013. Nonetheless, the company continued to lead within packaged food due to the well-established presence of its main brands, including Meadow Fresh, Quality Baker’s, Nature’s Fresh and Meadow Lea. Fonterra Brands (NZ) Ltd followed closely behind Goodman Fielder Ltd, being ranked second in 2013. The dairy manufacturer owes its strength to popular brands including Anchor, Tip Top, Mainland and Fresh ‘n’ Fruity.
Private label drives growth in supermarkets’ value share
Supermarkets continued to be the most important distribution channel for packaged food in 2013. There are only two major chained supermarket operators, Foodstuffs (NZ) Ltd and Progressive Enterprises Ltd. Foodstuffs (NZ) Ltd offers the Pak’nSave and New World supermarkets, whilst Progressive Enterprises Ltd operates the chain of Countdown supermarkets nationwide. The value share of supermarkets increased by one percentage point between 2008 and 2013, in part due to increasing private label penetration.
Christchurch rebuild to fuel economic recovery
Value sales are expected to increase by a 1% constant value CAGR over the forecast period, with economic recovery within New Zealand expected to fuel growth. Indeed, the Christchurch rebuild, which is expected to begin in earnest during 2014, is in turn expected to drive economic recovery in New Zealand. Consumers are expected to become more relaxed about spending, as discretionary spending pressures subside over the forecast period.
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The Packaged food in New Zealand market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Packaged food in New Zealand?
- What are the major brands in New Zealand?
- As economic prospects slowly improve, are consumers starting to eat out more and spending less time cooking at home?
- How is private label performing in the wake of retail consolidation and the global economic hangover?
- Do consumers want value for money or added value?
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This industry report originates from Passport, our Packaged Food market research database.