The Government has announced that it will invest more funding in natural pharmaceuticals and bio-based products, aiming to boost exports for what it describes as a "fast-growing" sector.
Science, Innovation, and Technology Minister Dr Shane Reti announced that the Government would be investing over $42.8 million over seven years to establish a "Biodiscovery Platform".
The platform would be designed to "accelerate the development of high-growth industries producing natural pharmaceuticals and other bio-based products".
The newly formed Bioeconomy Science Institute would lead it.
“This is an economic growth initiative,” Reti said.
“By harnessing New Zealand’s rich biodiversity, we can develop world-class, export-ready products in pharmaceuticals, cosmetics, functional foods, and advanced materials, creating jobs, growing businesses, and increasing our global market share.”
The market for bio-based products was expected to exceed US$300 million by 2027, according to the Government. It said natural pharmaceuticals were among the fastest-growing segments.
"This initiative enables New Zealand to capture a share of that growth by commercialising products rooted in our unique flora and fauna."
Reti expected the platform to open up "significant" export opportunities for New Zealand businesses.
"With targeted R&D, we’ll help companies bring new, science-backed products to international markets, supporting regional development and building a stronger, innovation-led economy.”
He pointed to the success of the honey sector as a model.
“In 2014, honey exports earned $187 million. By June 2025, that number had more than doubled to $420 million – thanks largely to innovation in mānuka honey. That’s the kind of economic uplift we want to replicate across multiple natural product sectors.”
The new platform was part of a wider push to grow New Zealand's science and tech economy.
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