New Zealand Freight and Logistics Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)
The New Zealand Freight and Logistics Market are anticipated to register a CAGR of more than 4% over the forecast period.
Key HighlightsIn the four quarters leading up to the end of Q2 2022, the total value of trade in goods and services (imports plus exports) between the United Kingdom and New Zealand was GBP 2.4 billion, up 5.0% or GBP 113 million compared to Q2 2021. In the four quarters leading up to the end of Q2 2022, total United Kingdom exports to New Zealand totaled GBP 1.4 billion (up 7.4% or GBP 97 million compared to Q2 2021). In the four quarters leading up to the conclusion of Q2 2022, total United Kingdom imports from New Zealand totaled GBP 971 million (an increase of 1.7% or Pounds 16 million compared to the four quarters).
In November 2021, exports of goods increased by USD 668 million (13%) as compared to the same period in 2020, reaching USD 5.9 billion. The country's main export commodity group, milk powder, butter, and cheese, contributed the most to the growth of the exports, increasing by USD 258 million (14%), to USD 2.1 billion, as compared to 2020. For this commodity group, November is traditionally one of the best months for exports. The value of this commodity group's shipments in November 2021 was the biggest monthly total ever recorded.
New Zealand's export growth in 2021 was primarily attributed to China, with dairy, beef, and forestry shipments all climbing 21% to China throughout the year. Growth in goods exports has also been aided by the global economic recovery and the relaxation of COVID-19 restrictions in the US and EU. Even if the headline figures for exports are encouraging, this conceals some notable decreases in several industries where labor shortages, supply chain issues, and the inability to travel to markets have restrained the growth of the market.
E-commerce Growth in New Zealand is Driving the Logistics SectorE-commerce businesses in New Zealand have grown rapidly in 2021, as online retail e-commerce sites generated sales of USD 1.78 billion in Q3 2021, an increase of around USD 200 million over the same period in 2020. Then sales reached higher levels in Q4 2021, as it was the largest three-month period ever for e-commerce sales. In New Zealand, people spent USD 2.5 billion, an increase of 45% as compared to Q4 2020. In light of previous growth, the anticipated increase, and the ongoing pandemic scenario, sales in 2022 are expected to be higher than in 2021.
According to the NZ Post, despite New Zealanders shopping online considerably more frequently, consumers are spending less overall with each transaction. In comparison to the same period in 2020, the average basket size in Q4 2021 was USD 103, compared to USD 96 in Q4 2020. Nevertheless, despite a drop in the average basket price, the average number of purchases increased to 8.2 by the end of 2021 from 6.3 in Q4 2020. The growth in e-commerce sales in various segments has created a demand for logistics infrastructure and e-commerce fulfillment in New Zealand.
New Zealand Freight & Logistics Market Competitive AnalysisThe New Zealand freight and logistics market is fragmented, with the presence of both international and local players. The market has a large number of local players like Mainfreight Limited, Carrolls Cartage Limited, First Global Logistics, and TIL Logistics Group Limited (Move Logistics). There are many players catering to the road freight market, which has led to an increase in competition in the market.
Additional Benefits:Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook