Why demand for F&B in China remains durable, and what “winning” looks like for NZ exporters

ood and beverage (F&B) remains the cornerstone of New Zealand’s export relationship with China—both in scale and in the way it reinforces New Zealand’s reputation for trusted, premium supply. In 2025, New Zealand’s F&B exports to China reached nearly NZD $16 billion, up +16% year-on-year, with dairy (65%), meat (16%) and fruit (10%) comprising the three largest F&B categories.

This performance also underlines a broader reality: China is New Zealand’s No.1 F&B export partner, and F&B continues to be the clearest pathway for New Zealand brands to build sustainable value in-market.

NZCTA Chairman John Cochrane noted that the strength of the F&B sector is not simply a function of trade flows, but of trust and relevance to Chinese consumers:

“New Zealand’s competitive advantage in China’s F&B market is ultimately a consumer proposition — food safety, provenance, and consistent quality. The companies that win are those that translate those attributes into brands, experiences and outcomes that matter to families.”

The consumer value proposition: what China is buying from New Zealand

At the consumer level, New Zealand’s strongest “reasons to believe” in China F&B typically cluster around:

·         Trust and safety: confidence in source-country controls, integrity of supply chains, and reputable producer standards.

·         Provenance and purity cues: pasture-based systems, clean-environment associations, and product traceability narratives.

·         Nutrition and functionality: where products align to health, family care, and premium dietary choices (particularly in dairy and certain packaged food categories).

·         Premium gifting and status signalling: for categories where packaging, origin and brand story are part of the value (e.g., select dairy formats, fruit, wine).

The NZTE report reinforces this demand base through the continued scale and momentum in key categories such as dairy (up 20% to NZD $9.98 billion) and fruit (up 38% to NZD $1.6 billion) .

“Winning ways”: what strong performers tend to do differently

Across categories, the companies that perform well in China’s F&B sector tend to execute consistently in five areas:

1. They build for China consumers, not just for “export”: They invest in consumer insight, product education, and fit-for-channel pack formats—then iterate. This is especially important in markets where consumers expect clear product benefits and proof points.

2. They align channel strategy to brand intent: Strong performers deliberately choose where they want to win—e.g., premium mother-and-baby, modern trade, specialty retail, e-commerce, gifting, or foodservice—and design pricing, pack architecture and marketing accordingly.

3. They treat compliance and quality systems as a commercial advantage: Rather than seeing regulation as a burden, they use quality assurance, documentation, and supply discipline to reduce risk for Chinese partners and strengthen the brand promise.

4. They invest in “in-market capability” (not just a distributor contract): The best outcomes usually come where there is real capability on the ground: key account management, shopper marketing, digital content, training, and rapid feedback loops.

5. They protect brand equity by managing price and authenticity: This includes controlled route-to-market, disciplined promotions, and tight governance on brand claims to avoid commoditisation and grey-channel dilution.

NZCTA Executive Director Jeff Shepherd captured the practical implications for members:

“China rewards consistency and commitment. The brands that perform best are clear on their consumer promise, choose the right channels, and invest in in-market execution—especially education, digital engagement, and partner capability. Distribution alone is not a strategy.”

The role of Chinese investment

A further—and often under-appreciated—dimension of success in China-bound F&B is the potential role of Chinese investment, not only as a source of capital but as a pathway to capability: 

·         Capital for growth in New Zealand (capacity, automation, QA systems, working capital to scale export programmes).

·         Consumer-led NPD: faster iteration based on real-time feedback from Chinese consumers, emerging flavours/formats, and evolving health trends.

·         Market access acceleration: leveraging investor networks and know-how to strengthen distribution, retail relationships, and digital commerce execution.

·         Marketing and brand building: better localisation of messaging, content development, and conversion programmes closer to the point of purchase.

This can be highly value-accretive when governance, incentives and brand/IP protections are thoughtfully designed—so that investment supports a long-term “value creation” agenda rather than short-term volume.

As John Cochrane noted:

“The best cross-border investment partnerships are capability partnerships. When structured well, Chinese capital can bring market insight, channel reach and marketing horsepower—helping New Zealand firms not only scale supply, but also build brands that connect directly with Chinese consumers.”

Jeff Shepherd added:

“NZCTA sees the most effective partnerships as those that combine New Zealand’s product integrity with in-market execution excellence. Investment can be a catalyst—provided the commercial model protects brand equity, aligns incentives, and keeps the consumer at the centre.”