Record low interest rates have led to a highly competitive retail environment in 2016, with supermarkets placing increasing emphasis on their portfolios of private label products, owing to increased margins afforded to them utilising this strategy. In light of this, value sales growth was largely driven by premiumisation trends, as well as increased consumer awareness of social and ethical trends, with products in related categories attracting higher price points.
Strong rates of migration from Asian countries continued to have a noticeable effect on packaged food, with categories associated with Indian and Chinese cuisine enjoying strong growth in 2016. Additionally, the popularity of Mexican cuisine in packaged food continued to increase, owing to strong penetration and an ever-increasing presence in foodservice.
Leading positions remain unchanged
The competitive environment in packaged food remained stable in 2016, with the leading players remaining unchanged from 2015. An increased presence from private label within packaged food overall was noticed, with both major supermarkets Progressive Enterprises Ltd and Foodstuffs (NZ) Ltd as well as an increasing number of artisanal players focusing on indulgence products, particularly in dairy-related categories.
Supermarket duopoly remains intact
Progressives Enterprises Ltd and Foodstuffs (NZ) Ltd retained their effective duopoly in 2016, with supermarkets remaining as the dominant distribution channel across packaged food. While both companies continued to invest heavily in their private label lines, a highly competitive retail environment resulted in a number of store closures.
Economic conditions to impact forecast period
While dairy commodity prices at near historic lows in 2016, they are expected to increase over the forecast period, which is therefore expected to improve economic growth. Additionally, increasing house and overall cost of living prices are expected to adversely affect consumers, with low interest and inflation rates expected to rise over the forecast period, as the reserve bank looks to inhibit the potential for stagflation to influence the economy. As such, value sales growth in packaged food is expected to increase over the forecast period.
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Discover the latest market trends and uncover sources of future market growth for the Packaged food industry in New Zealand with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Packaged food industry in New Zealand, our research will save you time and money while empowering you to make informed, profitable decisions.
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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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