Naturally Healthy Packaged Food in New Zealand

PROSPECTS

NPD activity driving growth

The healthy star rating system introduced during the review period continued to influence the naturally healthy category in 2018, with product reformulations and packaging refreshes moving to incorporate NH attributes. The category has become increasingly mainstream, with private label beginning to feature prominently in the category, which is expected to place downward pressure on value sales growth over the forecast period.

NH rice and NH olive oil strongest performers

NH rice and NH olive oil saw the strongest value growth in 2018, with the former posting growth from a smaller base. NH olive oil benefitted from the popularity of the Mediterranean diet, which New Zealanders continue to embrace.

NH fruit and nut bars performing poorly

Whilst NH olive oil was the key driver behind value sales growth in the category in 2018, contrasting that was the performance of NH fruit and nut bars, which exhibited slight value growth, placing pressure on the overall performance of the category in 2018. The importance of NH considerations in the category was offset by competition from competing categories, with declining demand for NH fruit and nut bars, as consumers look towards fresh fruit, hot cereals and protein shakes as convenient breakfast options.

COMPETITIVE LANDSCAPE

Sanitarium maintains its lead

Local player The Sanitarium Health Food Company maintained its led within NH packaged food in 2018, with the category’s positioning of its Sanitarium brand aligning with consumer health and wellness preferences, such as its initial introduction of the healthy star rating system. The company is active in promoting the NH attributes of its Sanitarium brand, particularly in breakfast cereals, with the healthy star rating system forming a key part of its overall brand positioning in the category.

Goodman Fielder Continues to Lead

Goodman Fielder New Zealand continued to lead NH dairy with a dominant share of NH butter and spreads (Olivani brand) and in NH high-fibre bread (Vogel’s) in New Zealand in 2018, owing to high levels of market penetration and strong distribution through supermarket channels, as well as enjoying a strong SKU count in the category. The company’s Olivani brand, an olive oil-based spreadable oil, ranked eighth in NH packaged food overall.

Private label penetrates NH packaged food at a high level

Private label brands performed better in NH packaged food than in other packaged food categories, with a high level of penetration in 2018. Both Progressive Enterprises and Foodstuffs (NZ) have placed strong emphasis on growing the credibility of their private label brands (PLB) in consumers’ eyes during the review period.

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