What Is the Scale of the Bio-Business Sector? Insights into Quantifying the Size of the New Zealand Bioeconomy

Abstract

Measuring the bioeconomy enables policymakers to monitor advancements in sustainable development goals, identify growth opportunities, comprehend the economic implications of bio-based products, assess environmental impacts, and shape policies that foster a sustainable economy reliant on renewable biological resources. For this purpose, this study measures the value of the bioeconomy in New Zealand using the latest published input–output table for the year 2020. This study estimates the size and economic significance of New Zealand’s bioeconomy by applying two complementary methodologies. Results indicate that, in 2020, the total value added by the bioeconomy ranged from NZD 48.8 billion to NZD 50.8 billion, representing 16.5% to 17.1% of the nation’s total value added. Agriculture emerged as the dominant contributor, accounting for approximately 89% of the sector’s total value added, followed by forestry and logging at around 11%. To identify potential growth areas, the analysis further disaggregated bioeconomy value added by economic subsectors. Among bio-based industries, food manufacturing was the largest contributor, generating 43.1% (NZD 21 billion) of total bioeconomy value added, followed by bio-based services at 12.9% (NZD 6.3 billion). The biotechnology sector contributed NZD 0.34 billion, equivalent to 0.7% of the total bioeconomy. Additional significant contributors included wood processing and manufacturing (3.3%; NZD 1.6 billion), construction (0.71%; NZD 0.35 billion), and textiles and clothing (0.58%; NZD 0.29 billion). These findings underscore the pivotal role of food manufacturing, services, wood processing, textiles and clothing, and construction in shaping the bioeconomy. They further highlight the importance of assessing the economic and environmental impacts of bio-based industries and formulating policy frameworks that support a sustainable, renewable resource-based economy.