The FMCG industry
So what is FMCG? It used to be called the grocery industry, now it’s just called FMCG. This is an acronym for Fast Moving Consumer Goods which, translated into English, means 'things you buy on a regular basis at places like your local supermarket.' Things like butter, potato chips, toothpaste, bread and other groceries.
The FMCG industry encompasses many of New Zealand's best known companies, including Goodman Fielder, Sealord, and Hubbards, as well as major multi-national groups such as Coca-Cola, Colgate-Palmolive, Heinz-Watties, Fonterra, Tasti, Cerebos and Hansells. It also encompasses the non-commodity exports of the agricultural sector companies.
Research and consulting firm Coriolis estimates that in 2012, the FMCG industry represents $28.7 billion in retail sales and $26.3 billion in exports. It directly or indirectly employs 344,820 people.
FMCG INDUSTRY BASIC FACTS - 2012
The NZ Food & Grocery Council represents the major manufacturers and suppliers of fast moving consumer goods that make up the $28.7 billion New Zealand domestic retail FMCG market and $26.3 billion in exports.
Food and beverage manufacturing and wholesaling in New Zealand directly employs 104,160 people (5 per cent of total employment) in 5,251 enterprises (1 per cent of the total number of enterprises). Looking at the wider value chain, including farming and food retailing/food service, employment soars to 344,820 in 85,252 enterprises. This represents around 1 in 5 of the New Zealand workforce.
No matter how you look at it, the New Zealand food, beverage, and grocery sector makes a substantial contribution to the domestic economy.
Many of the NZFGC’s members are major New Zealand exporters, with food and beverage representing $26.3 billion in exports (57 per cent of total New Zealand merchandise exports in 2011) to 183 countries. Our largest trade partner in food and beverage is China, which represents 12 per cent of those exports, followed by Australia and the US on 10 per cent.
Food and beverage manufacturing is the biggest manufacturing sector in New Zealand, representing 46 per cent of total manufacturing income and 34 per cent of all manufacturing salaries and wages.
While dairy and meat represent 50 per cent of employment in the food and beverage industry, a wide range of other sectors contribute to the other 50 per cent. The next biggest manufacturing sector is general equipment manufacturing and equipment for transport and machinery, which represents 10 per cent of total manufacturing sales.
The FMCG industry’s manufacturing and distribution centres are located across semi-urban and rural New Zealand, ensuring the enrichment of the country’s diversity and regional vitality.
Notes and sources
- Food and beverage domestic retail sales represent $28.7 billion (2011, Retail Trade survey, Statistics NZ, includes food service).
Food and beverage exports represent $26.3 billion (2011, FOB, excludes GM, HBC). This equates to 57 cent of total 2011 exports.
Manufacturing and wholesaling food and beverage, employees and enterprises (2011 Enterprise survey, Statistics NZ).]
Food and Beverage manufacturing is the largest sector in NZ, representing 46 per cent of total manufacturing income and 34 per cent of all manufacturing salaries and wages. Dairy and meat manufacturing are the main contributors. The next largest manufacturing sector is general equipment manufacturing and equipment for transport and machinery which represents 10 per cent of total manufacturing sales (2011, Manufacturing survey, Statistics NZ)
See p38 of Food and Beverage Information Project 2011 Industry Snapshot (Note: this is manufacturing only, not including wholesaling).
Coriolis Research Ltd, 7 August 2012