Critics of New Zealand’s natural health product policies have long objected to the restrictions imposed by the 1985 Dietary Supplements Regulations on the therapeutic claims that can be made about dietary supplements.
In his Sept. 23 announcement, Hoggard introduced updates that would allow New Zealand’s dietary supplements exporters to make therapeutic claims in line with the requirements of importing countries.
Exporters will also be exempt from New Zealand’s compositional requirements for food additives and maximum daily dose of vitamins and minerals. Currently, dietary supplement exporters must comply with both New Zealand’s labeling and composition requirements and those of countries to which they export. This is the case even if the products are not intended for sale in New Zealand.
Hoggard explained that the current regulatory regime, which restricts product composition and prohibits therapeutic claims, limits the flexibility of New Zealand exports to compete in international markets, resulting in “lost commercial opportunities.”
“The changes would prevent unnecessary double-up by requiring exporters to only meet the rules of the importing country,” he stated. “It’s a common-sense change strongly supported by industry and would help to level the playing field for a rapidly growing industry, without compromising on consumer safety.”
If implemented, the proposal would mean that dietary supplements complying only with the regulations of importing countries cout not be sold in New Zealand.
Commenting on the proposal, industry association Natural Health Products NZ (NHPNZ) Government Affairs Director Samantha Gray welcomed the move, highlighting that exporters can tap into opportunities in fast-growing markets, since it would allow businesses to tailor export-only products to international rules and market-driven demands.
“This will be a game changer for our industry,” Gray said. “Without a doubt, this will free up exporters from decades of red tape, saving time and money. It means New Zealand businesses—ranging from innovative startups and SMEs to large enterprises—can better tap into fast-growing markets across Asia, the Middle East, North America and Europe.”
NZ$500M in additional export opportunities
The reforms are projected to unlock up to NZ$500 million (US$283.5 million) a year in additional export opportunities, according to NHPNZ. The industry is currently worth about NZ$2.3 billion (US$1.3 billion) annually.
The trade association highlighted a series of engagements with the government in the lead-up to Hoggard’s proposal.
One such engagement involved demonstrating to Trade Minister Todd McClay how New Zealand brands have been excluded from Chemist Warehouse’s expansion into Dubai because export exemptions were unavailable. Chemist Warehouse has since opened four outlets in the UAE, the latest of which is located in Abu Dhabi Mall.
It also developed a global market analysis comparing the natural health products sector with key trading partners and New Zealand’s wine and honey industries.
“This work has helped position the sector as a growth opportunity and strengthened our engagement with the Ministry of Primary Industries (MPI) on its growth strategy,” NHPNZ shared in its response to Hoggard’s proposal.
A first step, not the finish line
While expressing optimism about the proposal, Gray said it is crucial that the regulations are implemented effectively, without further delay.
She explained that, ultimately, exporters would need a clear, workable pathway covering the full range of dietary supplements to realized the benefits of the proposed regulatory change.
“A lack of regulatory reform over many years has left us lagging behind international trading partners,” she said. “The fact that our sector has grown to its current scale is a credit to the people backing it. We will continue pushing the government for further, fast-paced reform to accelerate growth for this rising star of New Zealand’s value-added economy.”
