Natural Health Products NZ

Industry Survey 2019

Contribution to the Economy

The Natural Health Products industry contributes
$2.3 billion to the economy annually

Since 2014 this contribution has grown at 10% CAGR (Compounding Annual Growth Rate)

Business structure and employment

Largely consists of family (29%) and owner-managed (30%) businesses.

Employs approx. 4,019 people.
SMEs (5-49 FTE) make up 51% of companies.

The industry paid $225M in salaries and wages in the last financial year. 41% of companies pay more than $1M in salaries.

Research and Development

The rate of R&D in the natural products sector is 4x higher than the NZ average.

44% of firms spend 5% or more of turnover on R&D

Business’s ability to conduct R&D was hampered by:

Regulatory issues

Cost/Lack of Capital

Lack of Time

Exports

In 5 years, exports
have increased
125% to $642 million

74% of the sector
are exporters

Our biggest trading partners are

China

Australia

USA

Canada

Growth

21% predict REVENUE growth in excess of
30% in the next 3 yrs

27% predict EXPORT growth in excess of
30% in the next 3 yrs

Overall top identified barriers to growth:

New Zealand government regulations

Increased
competition

International government regulations

Increased
operating cost

Cost of getting product to market

The New Zealand natural health products industry

New Zealand’s historical focus on agriculture and food production, its natural environment, and wealth of unique resources have combined to create a lucrative and growing natural health and nutraceuticals sector.
From harnessing the antibacterial properties of manuka honey, to research and development that has identified a bioactive in New Zealand grown boysenberries to assist with lung health, the country has a long track record of identifying and utilising the medicinal and nutritional uses of natural products.
Exports include mussel extract powder, plant and marine oils, kiwifruit-based specialised ingredients, berry fruit powders and concentrates, natural honey products, deer velvet, skincare, botanical and dairy products.

About Natural Health Products NZ

Natural Health Products NZ is a national industry organisation representing the natural products, functional foods, complementary medicines, cosmeceuticals, and nutraceuticals industries.
We were established in 2002 by industry and with support of New Zealand Trade & Enterprise.