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
Annual Growth 14-19
Forecast Growth 19-24
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 Key Buyers Chapter

    The Vegetable Growing industry is characterised by a low level of market share concentration. No single company holds a market share of over 5% and the top four players combined are estimated to account for less than 20% of industry revenue in 2018-19. Many farms are family-owned or owner-operated as the industry has low barriers to entry, adding to its fragmented nature. Some industry consolidation is occurring, with some of the larger farms acquiring smaller farms to boost output and economies of scale. However, market share concentration has remained stable over the past five years, as the larger players have not changed significantly...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
  • 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
  • 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 is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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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