NZ Invests $42 Million to Transform Biodiversity into High-Value Exports

New Zealand is taking a bold step to turn its natural biodiversity into a driver of economic growth. The Government will invest over $42 million across seven years to establish a Biodiscovery Platform, designed to accelerate the development of high-growth industries that produce natural pharmaceuticals, bio-based materials, and other innovative products.

Announced by Science, Innovation and Technology Minister Dr Shane Reti, the initiative will be led by the newly formed Bioeconomy Science Institute, which aims to unite researchers, Māori enterprises, and industry players to commercialize New Zealand’s unique natural resources.

Unlocking Economic Potential through Science

“This is an economic growth initiative,” said Dr Reti. “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 global bio-based products market is forecast to exceed USD $300 billion by 2027, with natural pharmaceuticals among the fastest-growing sectors. By investing in this platform, New Zealand is positioning itself to capture a share of that global demand and transform its natural flora and fauna into high-value, export-oriented innovations.

Supporting Innovation and Industry Collaboration

The Bioeconomy Science Institute will play a central role in driving research and commercialization. It will:

• Support targeted R&D and market analysis

• De-risk private sector investment

• Accelerate product development pipelines

Dr Reti cited the mānuka honey industry as an example of what focused innovation can achieve. “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.”

Strengthening the Science and Tech Economy

The Biodiscovery Platform complements several major government investments aimed at strengthening New Zealand’s science and innovation ecosystem. Recent commitments include:

• Up to $70 million for artificial intelligence technologies

• $71 million for next-generation materials and magnet technologies

• $46 million through Endeavour Smart Ideas grants

• $183 million for Endeavour Research Programmes

• A doubling of investment in the fast-growing gaming sector

“Science, innovation, and technology are one of the five pillars of our Going for Growth economic strategy,” Dr Reti added. “This investment ensures that New Zealand remains competitive in future-focused global industries – and that our natural advantages are turned into long-term economic gains.”