As interest rates soar to decades high, the possibility of an economic slowdown is expected in the year ahead. Under these circumstances, it is crucial for companies in New Zealand to take strategic steps towards increasing business resilience to weather through turbulent times. One way your organisation can do so is to introduce new goods into your product mix to increase sales in your business. But before you hit the ground running, careful planning is essential to ensure that your product line-up is relevant to the market so that the demand is sufficient to make your venture profitable. To help you out, DHL Express delves into some of the main imports in New Zealand and how your company can capitalise on them to boost the bottom line and fuel growth.
Main imports of New Zealand and how to capitalise on them
Having established strong trade relations with many nations worldwide, New Zealand imports goods from diverse countries. Among them, New Zealand’s main import partners include China, Australia, the U.S., Japan, and South Korea, as noted by Stats NZ, and a breakdown of the top imports is as follows:
1. Motor vehicles
2. Machinery
Machinery encompasses industrial and direct consumer goods such as computers, air conditioners, centrifuges, and heavy machinery. Like motor vehicles, the machinery category has also seen an upward trend, with imports rising by 15.2% to NZ$1.1 billion as of November 2022, as reported by Stats NZ. Notably, this increase is led by turbojets and their associated parts. Besides this, machines for agricultural use, too, show promising potential. For instance, Research and Markets projected the tractors market to grow at a compound annual growth rate (CAGR) of 3.14% from 2022 to 2028. Thus, businesses could enter this category through these two markets.
3. Plastics
Based on Stats NZ, plastics imports totalled US$313 million in 2022. Products under this group include plastic articles such as lids, houseware and raw plastic sheeting. However, the government of New Zealand has enforced new regulations prohibiting businesses from selling selected plastic-containing goods from 2022. Thus, businesses must thoroughly examine the relevant laws before importing this category of goods into the country.
4. Pharmaceutical
New Zealand imports a significant amount of pharmaceuticals from countries such as the U.S. and Europe to meet the needs of its citizens. In the report published by Stats NZ, the value of those imports amounted to NZ$230 million, representing an increase of 48% from the previous year. As the number of seniors living longer increases, the demand for pharmaceuticals will likely grow. To tap into the market potential, firms may want to focus their efforts on importing and selling pharmaceutical goods targeted at the elderly.
5. Furniture, lighting signs and prefabricated buildings
Imports under the furniture, lighting signs and prefabricated buildings category amount to NZ$195 million in 2022, as calculated by Stats NZ. Based on Statista’s projection, this market is expected to grow at a CAGR of 5.68% from 2023 to 2027. In particular, it is worth noting that the New Zealand government has rolled out plans to transform new buildings into green architectural structures. Following this initiative, the demand for eco-friendly prefabricated buildings may increase in tandem, presenting a viable market for firms.
As one of the top 10 eco-friendly countries listed on GreenMatch, sustainability has always been a top priority for New Zealanders. Thus, there may also be potential for consumers’ demand for associated goods such as sustainable furniture to rise in response to this national directive. In light of this, firms keen to explore this category can consider importing sustainable products to sell.
