NZ organic sector reaches record $1 billion value

NZ organic sector reaches record $1 billion value

The 2025 Organic Sector Market Report shows New Zealand’s organic sector has reached a record NZ$1.18 billion in value.

This includes for the first time organic sales in the foodservice sector and reflects a 37% increase since 2020 (excluding foodservice), marking strong and sustained growth.

Given the evidence of strong growth in global demand and the premium commanded by organic products, organics is New Zealand’s highest-value and lowest-impact of primary production, delivering premium exports, healthier food, and stronger environmental outcomes.

But the report also delivers a stark warning. New Zealand’s organic sector lags behind the rest of the world due to outdated policies and lack of investment. The looming threat to the country’s GE-free status also puts this success at risk.

Key growth highlights include:

  • The sector has grown from NZ$723 million in 2020 to NZ$1.18 billion in 2024
  • Exports totalled NZ$606.7 million, growing at nearly twice the rate of total primary sector exports.
  • Domestic consumption reached NZ$572 million, including NZ$190 million from the foodservice sector, now measured for the first time.
  • Certified organic land grew 4.3%, reaching 89,544 hectares
  • Leading export categories include fruit and vegetables (40.3%), dairy (35.3%), and wine (12.2%).

Despite strong performances, the report highlights critical structural barriers that continue to constrain the sector’s full potential:

Only 0.6% of New Zealand farmland is certified organic, well behind global benchmarks, limiting the sector’s ability to scale.

The National Organic Standard remains unfinished, more than two years after legislation was passed and despite over a decade of sector advocacy. Without it, producers face uncertainty and inconsistent recognition in international markets.

Organic equivalency agreements with key trading partners remain undone, delaying access to lucrative premium markets and adding compliance costs for exporters.

Certification and regulatory costs are rising, particularly impacting small and medium-sized producers and discouraging new entrants.

The Government’s proposed Gene Technology Bill would allow the outdoor release of genetically modified organisms (GMOs), posing an existential threat to organic producers, jeopardising New Zealand’s GE-free brand and risking the loss of access to premium organic export markets that prohibit GE contamination.

For more information, visit Market Report 2025 — Organics Aotearoa New Zealand

Source: OANZ

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