New Zealand Freight and Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

New Zealand Freight and Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The New Zealand Freight And Logistics Market size is estimated at USD 17.71 billion in 2024, and is expected to reach USD 20.75 billion by 2029, growing at a CAGR of 3.21% during the forecast period (2024-2029).

Key Highlights

• Due to the pandemic, most commodity products, such as building supplies, infrastructure, and certain FMCG and clothing apparel businesses, experienced supply chain disruptions in New Zealand. Some consumers are switching to suppliers from New Zealand to support local businesses, and many export businesses relying on the export of agricultural commodities, such as milk products and meat, are expected to play a key role in driving the freight and logistics market. However, several forestry operations around the country have shut down, according to the Forest Industry Contractors Association, which estimates that about 30% of the country's logging activities have halted due to supply chain delays.
• In New Zealand, road freight is the predominant mode of freight transport and accounts for almost 70% of the total domestic freight movement (in terms of ton-km) and over 90% of the freight (in terms of volume/ton). Rail, although a small player in terms of employment and value-added within the wider transport, logistics, and distribution sector, plays a vital role in connecting Auckland, Tauranga, and Hamilton.
• At the height of the COVID-19 epidemic, there was a shortage of containers; however, today, there are too many containers, which is an issue for the world economy. Data reveals that container depots, which are used to store containers after they are unloaded, are now filling up or being at capacity, in addition to declining freight prices, which is primarily due to a decline in global demand and economic slowdown. In its third-quarter results, big shipping company Maersk issued a warning that due to declining demand and eased supply chain congestion, freight rates have peaked and an expected drop in ocean transport profits.
• Both the continued need for capacity from exporters and the robust local demand for goods have been present throughout the previous year. However, because of erratic shipping schedules and congestion at major New Zealand ports, capacity has not kept up. Despite government subsidies keeping capacity at 90% of pre-pandemic levels, air freight capacity is also under pressure due to high demand. Inconsistent shipping for imports and exports has had an impact on the entire domestic supply chain. To keep up with international schedules, lines are offloading products at ports other than their original destination due to shipping delays and congestion.

New Zealand Freight & Logistics Market Trends

Increase in cross-border trade driving the market

In 2022, goods with a value of around 45.65 billion U.S. dollars were exported from New Zealand.

New Zealand’s biggest export products by value in 2022 were concentrated and sweetened milk or cream, butter, sheep or goat meat, frozen beef, and rough wood. In aggregate, those major exports accounted for about four-fifths (39.8%) of overall export sales from New Zealand.

The latest available country-specific data shows that importers bought 75.9% of products exported from New Zealand in mainland China (28.8% of the global total), Australia (11.2%), the United States of America (10.9%), Japan (6%), South Korea (3.7%), Indonesia (3%), Taiwan (2.4%), Singapore (2.3%), the United Kingdom (2%), Thailand (2%), Malaysia (also 2%), and the Netherlands (1.5%).

From a continental perspective, 60.4% of New Zealand’s exports by value were delivered to Asian countries, while 13.0% were sold to fellow Oceanian trade partners led by Australian importers. New Zealand shipped another 12.9% worth of goods to North America.

Smaller percentages went to Europe (9.1%), Africa (3.1%), and Latin America (1.5%), excluding Mexico but including the Caribbean.

E-commerce Growth in New Zealand is Driving the Logistics Sector

New Zealand's eCommerce sector is projected to bring in USD 5.33 billion in revenue in 2023, which translates to an average revenue per user (ARPU) of nearly USD 1,000. New Zealand also has a per capita income of USD 48,249 - one of the highest in the world.

New Zealand's eCommerce revenue is expected to reach USD 8.32 billion by 2027.

Even though other countries in the APAC region, such as Singapore (36%), Indonesia (34%), and the Philippines (25.9%), are projected to grow faster, the country's eCommerce sales trends are well ahead of the global average and show no signs of slowing down.3

Additionally, there is still plenty of room for growth since the online user penetration in the country is still relatively low at 61.8%.4 A big chunk of those missing out are from the older demographics.

The best-selling products in New Zealand eCommerce come from four main categories – food/groceries and liquor (25%), department/variety and miscellaneous (23%), clothing and footwear (21%), and appliances/electronics (16%).

New Zealand Freight & Logistics Industry Overview

The 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). Many players are catering to the road freight market, which has led to an increase in competition in the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support