Briefing:  Unlocking the Export Opportunity for Natural Health Products                                

10 September 2025

Introduction

1. Natural Health Products NZ is the peak industry body representing the natural health products sector that contributes $2.3 billion to NZ’s GDP per annum.
2. Natural health products include dietary supplements, nutraceuticals, functional foods, and some topical consumer products available for general sale.
3. These products are sold in bricks and mortar grocery, pharmacy, health food and other retail stores and via e-commerce.
4. Global VDS (vitamin and dietary supplement) sales are in excess of $218 billion with the wider sector at $382 billion per annum with strong CAGR (Euromonitor).
5. Our members span the value chain from ingredients and raw material supply to branded goods and contract manufacturing and service providers.
6. Our branded ingredients and consumer retail products take NZ primary produce up the value chain.
7. Our manufacturers are internationally trusted partners and include state of the art facilities with global compliance, employing thousands of New Zealanders
8. Our products seek to commercialise NZ R&D and innovation through partnerships with CRIs and Universities to develop high value evidence-based products and ingredients.
9. Natural Health Products NZ Supports the governments goals to double the value of all exports by 2034.
10. Our sector is ready and willing to grow exports to contribute to this goal but is held back by unnecessary red tape.
11. 70% of our members are exporters, and the value of exports is currently more than $600 million per year.
12. Dietary Supplements are the significant product class for export.

The Issue

13. Export growth is severely constrained, and current exports are at risk due to internal barriers to trade.
14. Dietary supplements exports must comply with NZ domestic claims and composition regulations.
15. NZ domestic regulations prohibit health benefit claims (therapeutic type claims) and impose severe compositional limits for common vitamins and minerals.
16. The primary consumer purchase drivers for dietary supplements are the health benefit claims stated on the label and the composition of the product formulation.
17. Exporters are unable to cross regulatory hurdles to gain market access in some markets because of this issue.
18. Examples of markets affected are high growth markets in the Middle East and Southeast Asia.
19. Some of these markets are those for which NZ has an FTA – however, this issue imposes internal barriers that limit or nullify FTA opportunities.
20. In all markets the issue means that products cannot compete on-shelf with products from other countries.
21. NZ R&D and innovation cannot be commercialised because evidence-based health claims cannot be made.
22. Consequently, businesses don’t invest in the NZ R&D and innovation ecosystem because the ROI is severely limited
23. Government funded R&D and innovation by CRIs, and Universities cannot generate expected ROI
24. NZ exporters lose market share to our international competitors.
25. NZ contract manufacturers cannot produce product ranges that meet regulatory and market requirements for international clients either.
26. NZ contract manufacturers lose business to overseas countries where export-only exemptions are permitted – e.g. Australia.
27. NZ branded dietary supplement producers move manufacturing for export markets offshore to countries where export-only exemptions are permitted – e.g. Australia.
28. As a result, NZ is losing $500 million in export opportunity per annum.

The Solution

29. Recent legislative changes to the Food Act (2014) by the Therapeutic Products Bill Repeal Act (2024) and Food (Exemption of Food for Export) Regulations (2025) made by this government have paved the way to enable a resolution to this issue.
30. Further action is required to enable dietary supplements export-exemptions that permit health claims and composition that are permitted in overseas markets.
31. The Minister for Food Safety has signalled that further work for dietary supplements is now a priority. View our Media Release in response to his announcement HERE.
32. The required export exemptions can be made by straightforward amendments to the Dietary Supplements Regulations (1985) and the Medicines Regulations (1984).
33. NHPNZ has commissioned Russell McVeagh to provide advice and the detail of the required amendments. This has been shared with Ministers.
34. We recommend prioritising this export-exemption work ahead of the work program for the proposed new scheme for Natural Health Products (to replace the repealed Therapeutic Products Act).
35. Our recommendation is based on the significant financial benefit to the New Zealand economy in terms of export revenue, maintaining and developing manufacturing capability and capacity, growing and protecting jobs and generating ROI from commercialisation of government funded R&D and innovation.
36. Our recommendation is fast and easy to implement as amendments are to regulations only.
37. We urge the government to move forward with the amendments with urgency to unlock $500 million annually in export growth for the benefit of the NZ economy.

Contact:  Samantha Gray

Government Affairs Director

govtaffairs@naturalhealthproducts.nz