Alfabank-Adres has identified the industries that are projected to create the highest number of new businesses over the next five years. These industries include:
- Post-production Services and Other Motion Picture and Video Activities
- Soft Drink, Juice and Bottled Water Manufacturing
- Credit Reporting and Debt Collection Services
- Computer System Design Services
Across the economy, the number of businesses in New Zealand is expected to decrease by 3.1% in 2021-22, to total 508,000. This follows a 4.6% decline in the previous financial year. The economic downturn caused by the COVID-19 pandemic is anticipated to continue putting pressure on businesses around the country, particularly as New Zealand Government support packages are increasingly wound down. Constraints on inbound tourism continues to put pressure on business activity in the country, particularly in the tourism and retail sectors.
Film production
The Post-production Services and Other Motion Picture and Video Activities industry is expected to grow at an annualised 2.6% over the five years through 2026-27, to $549.7 million. Demand for industry services from overseas film and TV content producers is forecast to rise, particularly due to ongoing grants and incentive programs offered by the Central Government.
Cloud computing has made it cheaper and easier for post-production service providers to access the software and hardware necessary to render large-scale VFX. Cloud computing and cloud-based rendering services, such as Rayvision and Google-owned Zync, are forecast to enable more niche operators to enter the highly competitive VFX market over the next five years. Consequently, industry enterprise numbers are projected to grow at an annualised 6.1% over the five years through 2026-27, to nearly 1,900 businesses.
Beverage manufacturing
The Soft Drink, Juice and Bottled Water Manufacturing industry is expected to grow at an annualised 2.0% over the five years through 2026-27, to $1.4 billion. Export markets present expansion opportunities for bottled water manufacturers. Operators are already capitalising on New Zealand's international reputation as having a clean and pure environment with high-quality natural resources. The country's significant freshwater reserves allow operators to bottle and sell water at premium prices to buyers in the United States, China and Australia.
Industry enterprise numbers are forecast to grow over the next five years, with many new businesses focusing on high-priced premium beverages. The number of new businesses is expected to rise at an annualised 4.3% over the next five years, to total 184 in 2026-27. Rising health consciousness will likely attract new producers to the industry over the period, with these operators incorporating healthy ingredients and new flavours into their products.
Credit reporting and debt collection
Revenue for the Credit Reporting and Debt Collection Services industry is projected to rise at an annualised 5.1% over the five years through 2026-27, to $193.0 million. Demand for debt collection services is forecast to exhibit strong growth over the period, with firms providing these services benefiting from greater levels of debt created during the COVID-19 pandemic.
The number of firms in the industry is projected to rise at an annualised 3.1% over the next five years, to total 188 in 2026-27. Although the industry is expected to grow strongly, ongoing acquisition activity by larger players will likely limit the rate of new business creation. Large industry firms are forecast to continue expanding their market share through acquisitions to drive economies of scale. Greater use of technology is forecast to improve operating efficiencies among larger firms and support industry profit margins.
Computer system design
The Computer System Design Services industry is expected to grow at an annualised 2.9% over the five years through 2026-27, to $12.6 billion. In the wake of the COVID-19 pandemic, a permanent shift to working from home for many businesses is expected to drive demand for internet-related services and cloud infrastructure. As a result, the industry will likely expand steadily over the next five years, as key markets increasingly rely on computer system services firms to provide crucial IT and business solutions.
Rising investment in emerging IT technologies and growth in client numbers are anticipated to drive growth in industry enterprises. The number of businesses in the industry is expected to rise at an annualised 2.2% over the five years through 2026-27, to nearly 13,900 firms.
Alfabank-Adres reports used to develop this release:
- Post-production Services and Other Motion Picture and Video Activities in New Zealand
- Soft Drink, Juice and Bottled Water Manufacturing in New Zealand
- Credit Reporting and Debt Collection Services in New Zealand
- Computer System Design Services in New Zealand
For more information, to obtain industry reports, or arrange an interview with an analyst, please contact:
Jason Aravanis
Strategic Media Advisor – Alfabank-Adres Pty Ltd
Tel: 03 9906 3647
