Expenditure on recreation and culture in New Zealand - Data and Analysis (1988-2034)

IBISWorld forecasts household expenditure on recreation and culture to fall by 3.4% in 2026-27, to $20.50 billion. According to the 2026 NZ Budget, private consumption rose just 0.6% in 2024-25, 1.0% in 2025-26, revised down from the earlier projections of 1.6% and 2.4% being forecast for 2026-27, reflecting weak momentum in discretionary spending. The Reserve Bank notes per-capita household consumption dropped over the two years through 2024-25, with high interest rates, a cautious labour market and ongoing economic uncertainty continuing to dampen demand for non-essentials. Despite a modest recovery in 2025-26, the onset of the Iran-Israel-US conflict in the Middle East once again brought on high inflation and interest rate hikes in July and September 2026. This indicates that expenditure on recreation and culture will contract in 2026-27.Household expenditure on recreation and culture as a proportion of total household consumption expenditure was relatively stable from 2002-03 to 2018-19, ranging from 9.3% to 9.8% of total consumption throughout the period. However, over the five years through 2023-24, this proportion rose above 10.0% as expenditure on recreation and cultural activities grew substantially, following a sharp rise in discretionary income. Growing consumption of recreation and culture has been partially fuelled by a rise in the number of subscription television subscribers and increased pet ownership and pet-related expenditure. A large proportion of the rise in expenditure on recreation and culture activities came when pandemic-era restrictions were lifted, with the two years to 2022-23 seeing a sharp spike as New Zealanders sought to spend on experiences.A contraction in household discretionary income over the five years through 2026-27 has subdued growth in household expenditure on recreation and culture. Discretionary incomes have been subject to volatility, boosted by low interest rates during the earlier part of the period which has since been offset by a double rate hike in July and September 2026. Greater government expenditure on recreation and culture has increased community engagement with related activities, notably, Maori culture and traditions. This has supported expenditure on recreation and culture. However, geopolitical turmoil, like the Iran-Israel-US war, as well as economic uncertainty curbing household discretionary spending has limited growth over the five-year period. Overall, IBISWorld forecasts expenditure on recreation and culture to grow at a compound annual rate of 1.2% over the five years through 2026-27.