FMCG Business Magazine: Leaders Edition - What does 2026 hold?

Read more here: FMCG Business February-March 2026

It feels like we’ve been blown into 2026 with more wind than usual or maybe that’s a result of me spending the summer in Pōneke Wellington! On the way to Wellington’s Airport, just off Cobham Drive on the Evans Bay foreshore, we have a sculpture called the Zephyrometer. I love the irony, that zephyr means a calm breeze. It stands at 26m tall, swaying with every gust, indicating wind speed and direction. So, when the needle is blown horizontal you know it’s very windy - even for windy Wellington.  

The weather certainly feels like a mirror to our times. Headwinds and tailwinds, terms to describe opposing and supporting economic forces, respectively, are both evident. While there was good news on the trade agreement and tariff front as 2025 drew to an end the first few weeks of 2026 have already demonstrated the unpredictable nature. Perhaps “crosswinds” is the better term to describe the billowing uncertainty, demanding agility and grit as we navigate what’s ahead. Riding tailwinds of easing inflation, supportive monetary policy, and growing consumer and business confidence, many are hopeful that this year will provide a path towards a more sustainable recovery.

Like the Wellington winds, regulatory currents are moving fast - bringing changes to the grocery landscape. For the NZFGC, we are working on supporting suppliers as the second Grocery Code takes effect later this year. We’re providing supplier training, resources, and practical guidance to help members understand requirements.  At the same time, we’re continuing engagement on the Commerce Commission’s next phase of work on wholesale grocery access, ensuring supplier perspectives are heard.

The Government is continuing its commitment to grocery market competition reform, to increase competition to reduce consumer prices - we’re expecting to hear more about further activity  early on in the year. Election years are usually turbulent and 2026 could see grocery scrutiny intensify and feature heavily in the policy tousle between political parties, as the cost of living remains a real concern and top of mind for Kiwi voters.

A significant trans-Tasman food labelling decision is expected in February, when Food Ministers decide whether to mandate Health Star Rating (HSR). It’s long been signalled that if fewer than 70% of products displayed HSR by November 2025, they’d consider mandating it. While final figures aren’t in, uptake is likely below target. Food Standard Australia New Zealand (FSANZ) has been preparing for this, exploring a Standard and researching consumer use of HSR to inform the decision. The HSR Implementation Guide has been updated to support industry understand what’s involved.

We await an update on the exemption from food labelling trial which is part of the Government’s response to the yet unreleased submissions to their ‘request for information’ to improve grocery competition. This would provide a Food Act exemption for some imported food products, allowing digital labelling to replace physical labels. While it offers opportunities, there are also risks, which we’ve urged Ministers to consider carefully. In addition, the Ministry for Regulation’s product labelling review recommendations are now with Ministers. We expect this will involve further consultation, and we look forward to providing feedback from our members.

FSANZ has a full agenda, including reviews into caffeine, supplemented sports foods, and young child formula. Preparatory work will also begin on commercial foods for infants and young children. Service improvements are a priority too, with new tools and information to support Food Standards Code users.

Updates to Australian and New Zealand dietary guidelines are pending, while the new US Dietary Guidelines, released in January, sparking much debate among nutrition scientists. This will be one we keep an eye on.

As we navigate the shifting winds of 2026, NZFGC is in great shape to offer guidance and support. We value our members’ support which enables NZFGC to provide a voice, support and networking for suppliers. We welcome new members in what is certainly going to be another critical year for our sector.