New Zealand is home to thriving agricultural and technology sectors and a growing tourism market. As global financial markets shift, new opportunities are emerging. Here are some of the most promising markets in the country, including tech, sustainable energy, agriculture, and tourism.
New Zealand
Tech Industry
In recent years, high-profile projects from New Zealand have earned a worldwide name. PowerbyProxi is the “world’s most advanced, safest wireless charging system” according to the government website. The company was part-funded by Samsung before being purchased by Apple in 2017. Dan Riccio, the then-senior vice president of Apple’s engineering, said the New Zealand firm’s technology would help create “a wireless future”.
New Zealand also has a firm footing in other tech spaces like cloud computing, software-as-a-service (SaaS), and digital infrastructure. Xero, based in Wellington, is a company providing accounting and business services to small and medium businesses. Xero’s accounting software is generally rated among the best options; TechRadar gave it a 4.5/5-star review. Morningstar recently reported on a new business partnership between Xero and Bluevine meaning that Bluevine customers will be able to sync their banking data with Xero.
Sustainable energy
New Zealand is a leader in renewable energy. 80-85% of the country’s electricity is generated from renewable sources. New Zealand has a “legislated target of net zero emissions by 2050”, as per the government website. Fossil fuel is currently responsible for 40% of the country’s greenhouse gas emissions. Vertus Energy, CarbonClick, Compostic, PowerFlex, and OurEnergy were among the top-rated energy companies and startups in a list on F6S. Some of these companies are focused on more sustainable products.
In terms of renewable energy, companies like New Zealand Wind Energy Association (NZWEA) and Mercury Energy promote wind energy and supply 100% renewable electricity, respectively. The New Zealand Herald recently reported on a “resounding majority of business leaders” calling for more investment in electricity generation. The article featured a photo of a steam turbine plant of Contact Energy, the country’s second-largest electricity generator (and, like Xero, based in Wellington). The largest, Meridian Energy, was originally owned by the government but is now partially privatised.
Low-stakes casinos
The New Zealand government oversees gambling regulations, meaning operators must adhere to strict licensing requirements. Regulation creates a safer environment for investors who want to enter the market with less risk. Modern casinos cater to a wide range of players, including those who prefer to play with small amounts of money. Many sites now allow players to play with low stakes; you can use $1 at an online casino. Online casinos that offer low-stakes games are becoming more popular, coinciding with the rise of mobile gaming. These sites allow players to play a variety of casino games (slots, poker, blackjack, etc) without the need to make large bets.
For investors, partnering with or investing in online gaming platforms may be an opportunity to tap into a fast-growing market. This has led to sustained growth across New Zealand’s iGaming sector as companies figure out the region and what works there. However, the New Zealand government plans further regulation, which is likely to change the face of online gambling in the country.
Agriculture
Agriculture has long been central to New Zealand’s economy, and it remains a sector full of investment potential. New Zealand is one of the world’s largest exporters of dairy, meat, and wool. Its agricultural industries benefit from the favourable climate, a relatively stable political environment, and its farming practices. There has been growing interest in sustainable farming practices and organic food production. There is also investment potential in the country’s plant-based food industry, with the global rise of vegan and plant-based diets presenting new opportunities for businesses developing meat alternatives and plant-based products.
Tourism
While the new “Everyone must go!” tourism campaign didn’t land, New Zealand tourism is generally a major part of its economy. The country’s amazing natural landscapes, cultural heritage, and wide possibilities for outdoor activities make it popular with international travellers. The Guardian reports that prior to the pandemic, tourism was at the top of New Zealand’s export industries and worth $40.9 billion. Recent figures show it’s rising back to pre-pandemic levels ($37.7 billion in 2023).
The NZD$500,000 radio and social media campaign is aimed at Australians. New Zealand’s tourism minister said, “What this Tourism New Zealand campaign says to our Aussie mates is that we’re open for business, there are some great deals on, and we’d love to see you soon”. Australians make up a large portion of the country’s tourists, with visitor numbers not quite matching pre-pandemic rates (88%).
Cusha Tangaere-Manuel, tourism spokesperson of New Zealand’s Labour party, said the new tagline was tone-deaf: “The irony of that messaging is: that’s how Aotearoa New Zealanders are feeling right now – there have been so many cuts”. Other critics said it sounded like a directive to residents to leave New Zealand. Meanwhile, the previous slogan of “100% Pure New Zealand” was one of the longest-running of its kind in the world, according to The Guardian.
Takeaways
New Zealand presents a range of possible market opportunities for investors, from the tech industry to sustainable energy, agriculture, and tourism. Each of these sectors presents its challenges, but they also may offer rewards for those willing to put in time and effort to understand the market dynamics. The country is leading the way in sustainable energy and has significant names in technology, so could be an ideal setting for investors.
