Fresh out of luck: Rising demand for fresh produce has constrained industry revenue

Operators in the Fruit and Vegetable Processing industry have faced challenging conditions over the past five years. An appreciation of the New Zealand dollar relative to the currencies of major trading partners has fuelled import competition. Fruits and vegetables have been increasingly diverted to fresh and export markets, which has reduced the supply available to industry operators. While rising health consciousness has increased domestic consumption of fruit and vegetables, fresh produce has accounted for a large share of this increase. The benefits of increasing health consciousness for fruit and vegetable processors have largely been limited to products that are specifically promoted as healthy. Industry revenue is expected to fall at an annualised 3.6%...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 13-18
-3.6%
Forecast Growth 18-23
Profit
Employment
4,118
Businesses
110

Industry Threats & Opportunities

  • A stronger New Zealand dollar has contributed to higher import competition over the past five years
  • Innovative flavours like Mexican chilli beans have renewed interest in established products
  • The market for low-priced private-label products is expected to become increasingly saturated
  • Industry Report - Industry Investment Chapter

    The Fruit and Vegetable Processing industry is moderately capital intensive. For every dollar invested in capital across the industry, an estimated $3.40 is paid as wages. Despite significant automation across the industry, operators continue to rely on labour to carry out functions. Additionally, the type of product manufactured influences capital investment. For example, bottling and canning processes require significant investment in machinery as these processes are generally fully automated.Industry employment varies seasonally, as more workers are required during harvest seasons for certain fruits and vegetables. Inc...purchase to read more.

    Additional Insights for the Fruit and Vegetable Processing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Fruit and Vegetable Processing Industry are

  • Upstream vertical integration (ownership links)
  • Marketing of differentiated products
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Apparent fruit and vegetable consumption and Demand from supermarket and grocery stores in the Fruit and Vegetable Processing industry impact industry performance..

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    What's in this report

    What is the Fruit and Vegetable Processing in New Zealand Industry?

    Industry operators primarily process fruit and vegetables into a range of goods, including sauces and condiments, soups, frozen and dehydrated fruits and vegetables, mixed meat and vegetable products, and non-dairy based baby foods. Processing methods include freezing, drying and dehydrating (excluding sun drying), pickling or otherwise preserving, bottling and canning.

    Industry Products
  • Dried, canned, bottled and frozen fruit
  • Dried, canned, bottled and frozen vegetables
  • Sauces and condiments
  • Jams, marmalades and other spreads
  • Soups
  • Other products
  • Industry Activities
  • Vegetable freezing
  • Fruit drying and freezing
  • Fruit and vegetable based condiment production
  • Shelf-stable fruit and vegetable production
  • Pickling of fruit and vegetable products
  • Soup production
  • Other fruit and vegetable processing
  • 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
  • Demand from supermarket and grocery stores
  • Trade-weighted index
  • Domestic price of fruit
  • Domestic price of vegetables

  • Current Performance
  • Consumer trends
  • Industry structure
  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Participation and profit
  • Product development
  • Consumer trends
  • Table: Fruit and Vegetable Processing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fruit and Vegetable Processing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • General Line Grocery Wholesaling in New Zealand
  • Supermarkets, Grocery Stores and Convenience Stores in New Zealand
  • Cafes and Restaurants in New Zealand

  • Key Selling Industries
  • Apple, Citrus and Other Fruit and Nut Growing in New Zealand
  • Grape Growing in New Zealand
  • Kiwifruit and Berry Growing in New Zealand
  • Vegetable Growing in New Zealand

  • Products & Services
  • Dried, canned, bottled and frozen vegetables
  • Sauces and condiments
  • Dried, canned, bottled and frozen fruit
  • Other products
  • Jams, marmalades and other spreads
  • Soups
  • Chart: Fruit and Vegetable Processing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Export markets
  • Grocery wholesalers
  • Retailers
  • Food-service establishments
  • Other food manufacturers
  • Chart: Major Market Segmentation for the Fruit and Vegetable Processing 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 Fruit and Vegetable Processing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fruit and Vegetable Processing Industry

  • Industry Globalization
    H J Heinz Company (New Zealand) Limited, Weyville Holdings Limited,
  • Table: H J Heinz Company (New Zealand) Limited - financial performance
  • Table: Weyville Holdings Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Fruit and Vegetable Processing 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 Fruit and Vegetable Processing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Ph Level
  • A scale from one to 14 that indicates the acidity or alkalinity of a substance, with solutions below 7.0 considered to be acidic.
  • Private-Label Products
  • Goods that are produced to be sold under a retailer’s own label.
  • Tariffs
  • A tax imposed on imported products.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Fruit and Vegetable Processing 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 Fruit and Vegetable Processing 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 Fruit and Vegetable Processing 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 Fruit and Vegetable Processing 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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