Executive Summary

Jun 2019
PROSPECTS
Increasing competition to place pressure on growth

Health and wellness concerns and increasing access to dietary and nutrition information has meant that New Zealand consumers are now more than ever conscious of what they are putting into their bodies as part of their diet. In response to this, manufacturers have increasingly resorted to introducing better-for-you (BFY) variants of established brands, focusing on sugar-free and gluten-free variants, such as Sanitarium Weet-Bix Reduced Cholesterol, which was launched in 2018.

Reduced-fat ice cream expected to continue to perform well

Reduced-fat ice cream saw the strongest performance within BFY packaged food in 2018 and is expected to continue to perform well over the forecast period as well. The record warm temperatures felt during the summer months fuelled consumer demand, and with consecutive years of record summer temperatures being felt in New Zealand, it is expected that this trend will continue over the forecast period, with the strong population growth expected over the forecast period also predicted to drive value sales growth in the category.

Stevia penetration to continue to increase

The use of stevia as an alternative to sugar in BFY packaged food continued to grow in popularity in New Zealand in 2018, although it was still not as prominent as it is in non-alcoholic beverages. Nonetheless, increasing population growth and growing consumer health and wellness concerns amongst consumers is expected to see demand for reduced-sugar products increase over the forecast period, whilst an aversion to artificial sweeteners is expected to see the penetration of stevia increase.

COMPETITIVE LANDSCAPE
Fonterra brands leads

Fonterra Brands (NZ) led BFY packaged food in 2018, owing to the company’s strong presence within dairy BFY categories, such as reduced-fat ice cream, and the fact that dairy categories held such a strong share within BFY packaged food. The company’s brand portfolio includes Anchor, Tip Top, Mainland and Bega, which are not quite premium positioned, but still positioned towards the higher tier of mid-priced products.

Goodman Fielder shines in reduced

The influence of dairy within BFY packaged food was additionally felt in the performance of Goodman Fielder New Zealand, with its performance led by its Meadow Fresh brand, which is present in reduced-fat dairy and leads in reduced-fat fromage frais and quark. Its lack of presence in reduced-fat ice cream means that the company has not been able to leverage the growing popularity of that category, which its chief competitor Fonterra Brands was able to do.

Healthy star rating system continuing to influence

Strong NPD activity continued to be observed in the category, with many companies utilising the Healthy Star Rating System to advertise the BFY credentials of new variants of existing brands, such as the reduced-sugar variants of Wattie’s Tomato Sauce with 50% Less Sugar, Wattie’s Spaghetti with 50% Less Sugar and Wattie’s Baked Beans with 50% Less Sugar released by Heinz Wattie’s. Health and wellness concerns amongst consumers made BFY a key driver behind NPD activity in 2018, with it featuring prominently in packaging, merchandising and marketing efforts, with strong competition being felt in the category.

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Better For You Packaged Food in New Zealand

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Overview: Discover the latest market trends and uncover sources of future market growth for the Better For You 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.

The Better For You 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
  • Production, imports by origin, exports by destination
  • Robust and transparent market research methodology, conducted in-country

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Passport market research database.

Better For You Packaged Food in New Zealand - Category analysis

HEADLINES

PROSPECTS

Increasing competition to place pressure on growth
Reduced-fat ice cream expected to continue to perform well
Stevia penetration to continue to increase

COMPETITIVE LANDSCAPE

Fonterra brands leads
Goodman Fielder shines in reduced
Healthy star rating system continuing to influence

CATEGORY DATA

Table 1 Sales of BFY Packaged Food by Category: Value 2013-2018
Table 2 Sales of BFY Packaged Food by Category: % Value Growth 2013-2018
Table 3 NBO Company Shares of BFY Packaged Food: % Value 2014-2018
Table 4 LBN Brand Shares of BFY Packaged Food: % Value 2015-2018
Table 5 Distribution of BFY Packaged Food by Format: % Value 2013-2018
Table 6 Forecast Sales of BFY Packaged Food by Category: Value 2018-2023
Table 7 Forecast Sales of BFY Packaged Food by Category: % Value Growth 2018-2023

Health and Wellness in New Zealand - Industry Overview

EXECUTIVE SUMMARY

Positive growth for health and wellness in 2018
Healthy and natural ingredients are the most prolific trends
New product developments boost shares of leading multinationals
Modern grocery retailers characterise distribution
Positive forecast period growth likely for HW products despite slowdown in some categories

MARKET DATA

Table 8 Sales of Health and Wellness by Type: Value 2013-2018
Table 9 Sales of Health and Wellness by Type: % Value Growth 2013-2018
Table 10 Sales of Health and Wellness by Category: Value 2013-2018
Table 11 Sales of Health and Wellness by Category: % Value Growth 2013-2018
Table 12 Sales of Health and Wellness by Prime Positioning: Value 2013-2018
Table 13 Sales of Health and Wellness by Prime Positioning: % Value Growth 2013-2018
Table 14 NBO Company Shares of Health and Wellness: % Value 2014-2018
Table 15 LBN Brand Shares of Health and Wellness: % Value 2015-2018
Table 16 Distribution of Health and Wellness by Format: % Value 2013-2018
Table 17 Distribution of Health and Wellness by Format and Category: % Value 2018
Table 18 Forecast Sales of Health and Wellness by Type: Value 2018-2023
Table 19 Forecast Sales of Health and Wellness by Type: % Value Growth 2018-2023
Table 20 Forecast Sales of Health and Wellness by Category: Value 2018-2023
Table 21 Forecast Sales of Health and Wellness by Category: % Value Growth 2018-2023
Table 22 Forecast Sales of Health and Wellness by Prime Positioning: Value 2018-2023
Table 23 Forecast Sales of Health and Wellness by Prime Positioning: % Value Growth 2018-2023

SOURCES

Summary 1 Research Sources