Government Moves to Ease Food Labelling Rules to Boost Grocery Competition

Under current rules, pre-packaged products must be relabelled to comply with New Zealand and Australian food labelling standards before being sold.

The Government has announced a new proposal that could make it easier and more affordable for new supermarket chains to enter the New Zealand grocery market, by reducing what it calls “onerous and outdated” food labelling requirements. Economic Growth Minister Nicola Willis and Food Safety Minister Andrew Hoggard say the move aims to cut unnecessary costs while maintaining strong food safety protections.

The proposal—now open for public consultation—would trial digital food labelling for lower-risk imported pre-packaged products. The initiative responds to repeated concerns from retailers and international suppliers that New Zealand’s physical labelling rules create a costly barrier for new market entrants.

Lowering Barriers to Grocery Market Competition

Under current rules, pre-packaged products must be relabelled to comply with New Zealand and Australian food labelling standards before being sold. This requirement applies even when products are already fully labelled to comply with trusted overseas regulations.

Willis says these costs make it more difficult for new supermarkets to enter the market, restricting competition and limiting consumer choice.

“We have heard that one of the barriers to new supermarkets entering the New Zealand market is the cost of having to re-label pre-packaged products,” Willis said. “Retailers would still need to provide shoppers with essential information, but they wouldn’t need to go to the expense of re-labelling products to do so.”

The Government believes easing these requirements—without compromising food safety—will help new retailers set up faster and bring much-needed competition to a grocery market long dominated by large incumbents.

Digital Labels: A Modern, Flexible Alternative

Under the proposed trial, required consumer information such as allergens, ingredients, and nutrition details would remain mandatory. However, instead of reprinting physical labels, retailers could make the information available through:

• QR codes on shelves

• Digital screens or in-store displays

• Company websites

• Mobile applications

These digital formats must provide consumers with easy access to all legally required information.

The trial would apply only to lower-risk imported products from countries with trusted regulatory systems similar to New Zealand’s.

Food Safety Still Paramount

Food Safety Minister Andrew Hoggard says digital labelling offers flexibility without compromising New Zealand’s high safety standards.

“Physical labelling can be a costly barrier,” Hoggard said. “If we can provide additional flexibility through digital labelling, we should. It’s about fixing what matters.”

He emphasised that all products in the trial would still be required to:

• Comply with the Food Act 2014

• Meet the compositional standards of the Australia New Zealand Food Standards Code

• Comply with all other relevant New Zealand legislation

“As always, food must be safe and suitable,” Hoggard said. “But food affordability is front of mind for me.”

Supporting Trans-Tasman Progress on Digital Labelling

The initiative aligns with growing momentum in Australia and New Zealand for modernising labelling standards. Last week, Trans-Tasman Food Ministers formally recognised the rising importance of digital labelling. Findings from this trial will inform joint work now underway across both countries.

The Government sees the trial as an important opportunity to contribute to region-wide regulatory reform, ensuring that labelling frameworks keep pace with modern retail practices and technological advancements.

Consultation Now Open

Because changes to food regulations require consultation under the Food Act, the Government has opened a consultation process seeking feedback from consumers, retailers, food manufacturers, importers, and industry organisations.

Public consultation closes on 19 December 2025, after which the Government will decide whether to proceed with the full trial.

If approved, eligible retailers and importers will be invited to register their interest in participating.

A Step Toward Lower Grocery Costs

The initiative forms part of the Government’s broader work to improve competition and affordability in the grocery sector. Willis says reducing unnecessary compliance costs is one way to help lower prices for consumers without compromising safety or quality.

“If successful, the trial would make it easier for new supermarkets to get established in New Zealand,” she said.

With food affordability an ongoing concern for households, the Government sees digital labelling as a promising tool to increase competition, reduce entry costs, and modernise regulatory settings—all while maintaining rigorous safety standards.