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 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.
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.
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.
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.
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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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.
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