New Zealand kiwi fruit cooperative eyes further growth in China

Zespri, a cooperative of kiwi fruit growers in New Zealand, is eyeing deeper penetration and sustained long-term growth in China, reaffirming its confidence in the world's second-largest economy despite a sluggish global outlook.

As Chinese consumers increasingly prioritize health and premium-quality produce, Zespri expects its China sales to rise 9 percent this year to 46.3 million standard trays of kiwi fruit.

"We have very strong trust in the Chinese economy," Nathan Flowerday, chairman of Zespri, said during an exclusive interview with China Daily. "The Chinese economy has continued to be very resilient, even in times of uncertainty as well. So we have very strong confidence from a historical perspective in the Chinese economy."

Zespri, a grower-owned cooperative and a major global exporter of premium kiwi fruit, has spent over two decades cultivating the China market. In 2024, Zespri's sales in China reached over 1.1 billion New Zealand dollars ($658.2 million), with more than 1.5 billion kiwi fruits sold, bringing Zespri kiwi fruit into millions of Chinese households and further cementing the country's status as its largest and one of the most strategic single markets.

Flowerday noted that China accounts for about one-third of Zespri's global revenue, underscoring the market's strategic importance. "So it's just a matter of us fulfilling that strong demand that we've got to succeed in the China market."

Zespri attributes its strong performance in China to several factors such as strong partnerships with distributors, ports and testing facilities, premium product quality and alignment with shifting consumer trends.

According to a report released by consumer and retail analytics company NielsenIQ, Chinese consumers are becoming more intentional in their spending, prioritizing household essentials and health-related products.

Zhou Lingqing, managing director of NIQ China, said Chinese consumers have remained resilient and prudent, adopting a more purposeful approach to spending.

"They are seeking value in every purchase through various means and are focusing on products that bring a sense of abundance and well-being," Zhou noted. "Brands and retailers need to adapt to this shift by enhancing product value and experience, and by leveraging omnichannel strategies to meet consumers' growing demand for high-quality and high-value lifestyles."

Zespri believes the shifting consumer trend aligns well with Zespri's offerings as premium fruits are increasingly favored by more Chinese families, suggesting that the country's consumption potential will continue to be unlocked.

"The reason we think that, particularly in our case from a fruit perspective, is the very strong health attributes of our kiwi fruit," Flowerday said.

Despite current global economic uncertainty, Zespri plans to grow "in a measured way" by deepening its reach in existing tier-one cities and gradually expanding to more regions.

"We currently provide kiwi fruits to over 30 million households throughout China. There are many more households that we could reach," Flowerday said. "So long as we have a good, measured approach to that growth, then I think we'll see our strategic goals well and truly achieved.

"We've had a very deliberate strategy of not going too wide, too quickly within China, but to really focus on some of the tier-one cities and then moving out from there," he said. "We've got strong partnerships, not only with our local distribution partners, but also with our ports and our testing facilities to make sure that we have a trusted supply chain."

Flowerday also highlighted the importance of the long-standing bilateral ties between New Zealand and China. Citing the free trade agreement signed by the two countries, he said "that just shows how deep the relationship is between our two countries".

New Zealand is the first developed country to conclude a bilateral free trade agreement with China, and the China-New Zealand FTA is the first comprehensive and high-level free trade agreement that China has signed, covering broad areas such as goods, services, investment, movement of people and standard recognition.

Flowerday said he remains optimistic about Zespri's long-term prospects in China. "When I think about it from a historical perspective, there's always more we can do," he said. "Not only the next five years, but 10 years as the relationship continues to deepen with China."