Poor harvest: Volatile growing conditions have diminished industry revenue

The Vegetable Growing industry produces a range of vegetables, such as potatoes and carrots, and other similar products, such as herbs and tomatoes. Industry farms grow products outdoors, under cover in structures like greenhouses or in a combination of both. The industry's performance is linked to several factors, with the most significant being production levels. Volatile growing conditions, such as annual rainfall levels, have caused production to be subdued over the past five years. In addition, competition from other vegetable producing countries, such as Australia, has reduced export earnings over the period. Industry revenue is expected to fall at an annualised 1.6% over the five years through 2018-19, to reach $1.29 billion. This includes a projected revenue decline of 0.6%...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 14-19
-1.6%
Forecast Growth 19-24
Profit
Employment
7,359
Businesses
1,098
Market Share of Companies

Industry Threats & Opportunities

  • Industry operators have benefited from increased vegetable consumption over the past five years
  • Many larger farms have been purchasing smaller establishments to boost their economies of scale
  • Demand for organic produce is forecast to rise alongside increased health consciousness
  • Industry Report - Industry SWOT Analysis Chapter

    The Vegetable Growing industry is in the mature phase of its life cycle. This is despite industry value added (IVA), a measure of the industry's contribution to the wider economy, projected to fall by an annualised 0.4% over the 10 years through 2023-24. While IVA decline represents an underperformance relative to the overall economy, with GDP forecast to grow by an annualised 3.0% over the same period, the industry's consolidation and technological advancements indicate a mature industry.The industry has declined over the past five years, with volatile growing conditions affecting the industry's performance. Competition from other vegetable growing countries, such as Australia, has also reduced export earnings over the period. How...purchase to read more.

    Additional Insights for the Vegetable Growing Industry

    IBISWorld has determined the most important Key Success Factors for the Vegetable Growing are:

  • Establishment of export markets
  • Having an integrated operation
  • Output is sold under contract - incorporate long-term sales contracts
  • IBISWorld analysts also discuss how external factors such as Apparent fruit and vegetable consumption and Level of annual rainfall in the Vegetable Growing industry impact industry performance..

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    What's in this report

    What is the Vegetable Growing in New Zealand Industry?

    Industry operators grow vegetables outdoors and under cover. Under cover growing occurs primarily in greenhouses, cold frames, cloth houses and lath houses.

    Industry Products
  • Potatoes
  • Onions
  • Tomatoes
  • Carrots, parsnips and turnips
  • Other vegetables
  • Industry Activities
  • Vegetable growing outdoors
  • Vegetable growing under cover
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Apparent fruit and vegetable consumption
  • Level of annual rainfall
  • Domestic price of vegetables
  • Trade-weighted index
  • Domestic price of fertiliser

  • Current Performance
  • Revenue and profitability
  • Health consciousness
  • International trade
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Consumer demand
  • International trade
  • Industry structure
  • Table: Vegetable Growing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Vegetable Growing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Fruit and Vegetable Processing in New Zealand
  • Fruit and Vegetable Wholesaling in New Zealand
  • Supermarkets, Grocery Stores and Convenience Stores in New Zealand

  • Key Selling Industries
  • Livestock and Other Agricultural Supplies Wholesaling in New Zealand
  • Water Supply in New Zealand

  • Products & Services
  • Other vegetables
  • Potatoes
  • Onions
  • Tomatoes
  • Carrots, parsnips and turnips
  • Chart: Vegetable Growing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers
  • Exports
  • Food processors
  • Other markets
  • Chart: Major Market Segmentation for the Vegetable Growing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Vegetable Growing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Vegetable Growing Industry

  • Industry Globalization
    Capital Intensity
  • Chart: Level of Capital Intensity for the Vegetable Growing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Vegetable Growing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Greenhouse
  • A building constructed for planting and cultivating crops in a controlled environment.
  • Horticulture
  • The practice of growing fruit, vegetable, flowers and other plants.
  • Turnip
  • A root vegetable that is often used in soups and stews.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Vegetable Growing in New Zealand market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Vegetable Growing in New Zealand:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Vegetable Growing in New Zealand market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Vegetable Growing in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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