Goff: Natural Products Industry Capability Report
4 September, 2008
Launch of PricewaterhouseCoopers Natural Products Industry Capability Report
Good evening and welcome to Parliament Buildings and the launch of the Natural Products Industry Capability Report.
The Industry Capability Report was commissioned by Natural Products New Zealand and supported by New Zealand Trade and Enterprise to understand the current capabilities of the industry and to recommend a plan so that the industry can achieve maximum growth potential in the global market.
The natural products industry in New Zealand has an estimated worth of $500 million annually and with sales overseas of 60% of this is a considerable export earner for this country. Globally, the health and wellness market is a $300 billion industry. That suggests New Zealand has plenty of room to expand our industry further and capitalise on the opportunities.
New Zealand’s branding as being clean, green 100% pure, our reputation for safe, high quality foods and our wealth of unique flora and fauna are all compelling reasons why consumers would want to buy natural products and ingredients from New Zealand.
We have the advantages of plants with unique healing and functional properties not found elsewhere in the world, innovative processing technology and well developed systems that provide secure traceability.
The natural products we export include end products as well as ingredients destined for other producers in the food, cosmetics, nutraceutical and pharmaceutical industries.
Among our biggest foreign exchange earners in this area are vitamin and mineral supplements, mussel extract powder, shark liver and fish oils, deer velvet, skincare body products and natural honey.
Among our key and growing overseas markets are Australia, United Kingdom, United States, Japan and Singapore. To work together to gain knowledge and access and to grow our export markets, we need a New Zealand Inc approach, industry and government working together.
Among the opportunities for growth is that Baby boomers in the developed countries such as Japan and the United States are now reaching retirement age en masse. This has driven the demand for anti-aging products and services.
The Free Trade Agreement with China that New Zealand signed earlier this year also presents a very important market opportunity to the natural products industry. China is currently in the top 15 export markets valued at around NZ$10 million. This has been highlighted in the report as a market with significant growth potential.
The natural products industry’s vision to 2025 is to grow to a billion dollar local & export industry. That goal is challenging, but achievable.
It will require concerted effort by individual firms, supported by Natural Products New Zealand and government entities such as New Zealand Trade and Enterprise.
We need to focus on growing larger companies and to encourage them to be champions for industry development. Larger companies with critical mass need to be willing to share their experience with the rest of the sector, gaining access to wider opportunities themselves from the innovation of the smaller companies and from different export market experience.
New Zealand’s advantages and growth in the international market together create the potential for transformational growth for New Zealand natural products.
Sustained investment of both resources and time across the natural products industry, from the government and Natural Products New Zealand will allow this goal to be realised.
To all those involved with Natural Products New Zealand, best wishes for a successful and prosperous future.