Food and drink e-commerce continued to record double-digit growth in 2021 as local consumers became increasingly comfortable with and reliant on ordering groceries online to avoid exposure to the virus in crowded public spaces. One notable trend that gained momentum during this time was the increasing number of community grocery buying (CGB) groups emerging in Christchurch, Auckland and Wellington.
AuMake is a social daigou marketplace that expanded its operations in New Zealand towards the end of 2021, as it was able to reach agreements with over 100 local producers of meat and dairy products to export to China, through its partnership with Prizm Group. Since the free trade agreement between New Zealand and China came into effect in January 2021, demand for local produce from Chinese consumers has significantly grown.
An independent supermarket called The Honest Grocer launched its online-only service in New Zealand in 2021 to deliver to North Island residents, after identifying the huge potential for food and drink e-commerce in the country. Operating a monthly membership model, the retailer offers a wide range of groceries with a more premium positioning.
Supermarket operator Foodstuffs has continued to expand its services in South Island in line with changing consumer demands during the pandemic, with its New World chain launching its online ordering and home delivery service, initially in Rangiora, in 2021. While North Island stores have enjoyed this service for many years, there are plans to expand home delivery to all South Island New World stores by the end of 2022.
While food and drink e-commerce is predicted to record a notable decline in value sales (at constant 2021 prices) in 2022 as restrictions ease and consumers feel confident returning to grocery retailers to make their own selections, faster-paced lifestyles as New Zealanders return to some level of normality mean that they will once again demand and value convenience in all aspects of their lives. This will ensure solid growth for food and drink e-commerce for the remainder of the forecast period, with value sales surpassing figures recorded at the height of the pandemic by 2024.
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Internet retailing sales of food and drink (all packaged and fresh food and drink (hot drinks, soft drinks and alcoholic drinks).See All of Our Definitions
This report originates from Passport, our Food and Drink E-Commerce research and analysis database.
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