Jul 18 2017
Global business research company IBISWorld has released its inaugural suite of more than 200 dedicated industry reports on the New Zealand economy to help clients make informed business decisions about one of the region’s key trading partners.
Explaining the rationale behind launching the New Zealand report collection, Ms Kate Convey, General Manager of IBISWorld Australia said, ‘This suite of New Zealand reports is a natural extension of our global report collection and reflects the long-standing, significant trade relationship between Australia and New Zealand.’
The report collection provides in-depth data and expert analysis on a broad range of industries, including meat production, superannuation, forestry, energy and more. Ms Convey noted that New Zealand’s rapidly growing population, which is rising on the back of open immigration policies, is boosting the number of people who will benefit from a more detailed understanding of the New Zealand economy and its key industries.
‘It’s an excellent opportunity to provide valued-added industry information and support for our existing Australian clients, while also providing New Zealand businesses with a holistic view of their economy,’ said Ms Convey.
‘The New Zealand economy is much more diverse than the stereotypical perceptions of dairy farming and white wine, and our new reports showcase that breadth,’ said Ms Convey. ‘While primary produce is certainly a cornerstone of the New Zealand economy, other growing sectors such as tourism, professional services and healthcare also play a major role in the economy’s development.’
Highlights from the new reports include:
- Despite NZ’s reputation for high-quality lamb, domestic lamb consumption has declined by over 50% over the past five years, driving down revenue for the iconic sheep farming industry;
- Demand from Asian countries is driving strong export growth for NZ meat producers, with meat exports to China rising by an annualised 9.2% over the past five years;
- The US is the largest export market for NZ meat, generating 26.1% of revenue in the NZD$8.7 billion meat processing industry;
- While Australian wine exports to the US have been declining over the past five years, NZ wine exports have been rising at an annualised 11.5% over the same period;
- More than 85% of wine exported from NZ is Sauvignon Blanc;
- NZ is one of only a few countries worldwide to have a flat-rate universal superannuation system;
- NZ’s dairy sector significantly outperforms its Australian counterpart, generating revenue of NZD$18 billion in 2017-18, compared with NZD$12.9 billion in Australia;
- Cheese, butter and milk-powder manufacturing stands out as one of NZ’s largest industries, with almost 75% of the industry’s revenue attributable to exports;
- Margins for fuel retailers and petroleum product wholesalers have been rising, with NZ fuel prices remaining high over the past five years, despite falling world crude oil prices;
- Housing shortages in Auckland and post-earthquake rebuilding in Christchurch have driven strong growth for the multi-unit apartment and townhouse construction industry, which has had revenue increase by an annualised 16.2% over the five years through 2017-18, and the house construction industry, which has grown by 11.6% over the same period;
- Annual international visitor arrivals to NZ are tipped to rise from 2.6 million in 2012 to almost 4.5 million by 2020. Most inbound visitors arrive from Australia, China, the United States, the United Kingdom, Japan and Germany.
To produce leading business information reports, IBISWorld analysts begin with data from official and publicly available sources, such as Statistics New Zealand, the Ministry of Health and the Reserve Bank of New Zealand. To expand on these, IBISWorld analysts use industry contacts and non-public sources, while also accessing in-house data, analysis and modelling that details the most accurate revenue and profit data and forecasts available.
‘While compiling these reports, IBISWorld’s analysts have been interested to discover the different ways many industries in New Zealand operate compared with their Australian counterparts. We have used the best data available to produce high-quality information to provide academic institutions, governments, and public and private companies of all sizes with detailed insights into the New Zealand economy to help them make informed business decisions,’ said Ms Convey.
IBISWorld research found that the New Zealand supermarket industry is approximately 16% of the size of its Australian counterpart. The New Zealand sector is tipped to be worth NZD$18.7 billion in 2017-18 compared with NZD$112.5 billion for the Australian supermarket sector. Private-label products are not nearly as prevalent in New Zealand supermarkets (accounting for approximately 14% of sales in New Zealand, compared with 25% in Australia), while branded products account for almost 60% of sales revenue.
‘IBISWorld’s analysts and economists are well-versed in the Asia-Pacific economy, and deepening our knowledge and understanding of a significant trading neighbour is a valuable activity,’ concluded Ms Convey.
Each IBISWorld industry report includes detailed sections covering key statistics and analysis on market characteristics, operating conditions, current and historical performances, and major industry performers. IBISWorld currently produces industry reports on the economies of Australia, the United States, the United Kingdom, China and Canada. New Zealand is the latest addition, and offers clients detailed insights and analysis into a variety of industries. The reports for 2017-18 include data from 2008-2009 onwards, and forecasts through to 2022-23.
Interviews with an IBISWorld Senior Industry Analyst are available on request.
For more information, to obtain industry reports or to speak with an analyst, please contact:
Strategic Media Advisor – IBISWorld Pty Ltd
Tel: (03) 9906 3641 Mobile: 0422 773 995