Breaking into the Asian Market: A Guide for NZ Food Manufacturers
New Zealand’s food products are highly sought after in China and across Asia for their exceptional quality, natural ingredients, and food safety standards. Expanding your food manufacturing business into these markets can be a lucrative opportunity — but success requires the right strategy.
The demand for high-quality, imported food products is rapidly increasing across Asia, driven by rising incomes, urbanisation, and a growing middle class. For Kiwi food manufacturers, this presents a unique opportunity to enter lucrative markets. However, without a carefully crafted plan, expanding into new regions can be complex and risky. In this guide, we’ll explore why NZ food products resonate so well in Asia and the steps you can take to successfully enter the market.
Why NZ Food Products Are Popular in Asia
- Premium Quality:
NZ products are known for being clean, green, and trustworthy. Consumers in Asia place a high value on food safety and natural ingredients, making New Zealand’s strict food production standards a major selling point. Products labelled as “organic,” “grass-fed,” or “non-GMO” often attract premium prices. - Health-Conscious Consumers:
The demand for healthy, organic, and sustainably sourced products is on the rise. Asian consumers are increasingly mindful of their diets, prioritising low-sugar, low-fat, and additive-free products. Products like New Zealand honey, dairy, and organic snacks have carved out strong niches in this space. - Gift Culture in Asia:
In markets like China, Japan, and South Korea, gifting is an important social custom. Premium food products, beautifully packaged and branded, are often given as gifts during festivals, weddings, and other celebrations. Kiwi brands that design visually appealing, high-quality packaging can tap into this lucrative gifting market.
Tip: Creating festive-themed packaging or gift sets can boost sales during peak gifting periods like Chinese New Year and Mid-Autumn Festival.
Steps for Entering the Asian Market
1. Conduct Market Research
Understanding consumer behaviour is crucial before entering a new market. Here’s how to conduct effective research:
- Identify target demographics by region. Consumer preferences in Beijing may differ from those in Hong Kong or Seoul.
- Explore popular product categories — dairy, meat, seafood, and premium health foods are key growth sectors.
- Analyse competitor activity to see which products are performing well and what gaps exist in the market.
Pro Tip: Use platforms like Alibaba, JD.com, or WeChat to track top-performing products and trends in specific food categories.
2. Develop a Market Entry Strategy
Your strategy will determine the success of your expansion. Key considerations include:
- Choosing the right distribution channel: Supermarkets for mainstream products, specialty stores for premium items, or e-commerce for greater reach.
- Identifying pricing strategies that reflect both your product’s value and consumer expectations.
- Considering influencer marketing and social media strategies to increase brand visibility and build trust.
Pro Tip: Collaborating with trusted Key Opinion Leaders (KOLs) can dramatically boost your reach in key Asian markets.
3. Ensure Regulatory Compliance
Asian markets — particularly China — have strict import regulations for food products. Key steps include:
- Registering your business with China’s General Administration of Customs (GACC).
- Meeting AQSIQ food safety standards, which assess product shelf life, contamination risks, and ingredient labelling.
- Ensuring product labels include translated nutritional details, allergens, and expiration dates in compliance with local regulations.
Tip: Working with an export consultant can help streamline compliance and prevent costly delays.
4. Build Strategic Partnerships
Working with local experts can simplify your entry into new markets. Steps to consider:
- Identify experienced importers and distributors who specialise in your product category.
- Build relationships with supermarket chains, e-commerce platforms, and food service providers to ensure broad visibility.
Pro Tip: Attending international food trade shows like the China International Import Expo (CIIE) can help you connect with potential partners.
5. Localise Your Branding
To connect with consumers in Asia, you must adapt your brand messaging to suit local cultural values and preferences. This includes:
- Translating product names and descriptions into Mandarin, Japanese, or Korean.
- Adapting your packaging with culturally appropriate symbols, colours, and design elements.
- Aligning your marketing messages with cultural values such as family, well-being, and prosperity.
Tip: Products that highlight New Zealand’s “clean, green, and natural” image often resonate well with Asian consumers.
Success Stories from NZ Brands
✅ Dairy Success Story: A prominent New Zealand dairy company successfully entered the Chinese market by promoting its grass-fed, hormone-free milk as a premium product. By investing in influencer partnerships on WeChat and Tmall, the brand built trust with local consumers and rapidly increased sales.
✅ Honey Success Story: A New Zealand honey producer leveraged the gift culture in Asia by designing luxurious packaging that positioned their product as a premium gift item. This branding strategy allowed the company to thrive during Chinese New Year and Mid-Autumn Festival periods.
✅ Snack Success Story: A Kiwi snack brand tailored its product flavours to suit Chinese consumer tastes by offering locally inspired options like matcha, red bean, and lychee. This creative approach boosted sales and helped the brand gain a loyal following in urban markets.
Frequently Asked Questions (FAQ)
Q: What are the biggest challenges for NZ food brands entering the Asian market?
A: Regulatory compliance, understanding consumer preferences, and building brand trust are common challenges. Partnering with local experts can help overcome these obstacles.
Q: How long does it take to enter the Chinese market?
A: Timelines vary based on your product type, but expect 3-6 months for regulatory approvals and partnership building. E-commerce can offer faster entry points compared to traditional retail.
Q: Is it better to use an agent or establish a local sales team?
A: Using a trusted agent or distributor is often the most efficient way for small-to-medium brands to enter Asian markets. For larger-scale exports, establishing a local team can improve control and build stronger customer relationships.