While the United States is often seen as the ultimate goal for Kiwi businesses, Canada may actually offer a smoother, high-potential entry point into North America. With strong trade agreements, cultural similarities, and an accessible business environment, Canada provides an appealing balance of opportunity and manageable risk for Kiwi exporters. Drawing on insights from Marketing and Management Consultant, Najib Jutt, this guide explores why Canada should be on your radar – and how New Zealand businesses can successfully navigate this promising market.
For New Zealand businesses, Canada offers a promising and strategic first step into the North American market. While many Kiwi companies consider the United States as the ultimate expansion goal, Canada provides a more accessible option with fewer regulatory hurdles and less market saturation. Culturally, Canada aligns closely with New Zealand, with similar values around environmental sustainability, a shared love for the outdoors, and a collaborative business approach.
This cultural fit can help New Zealand businesses establish trust and build customer loyalty more quickly. Additionally, Canada’s smaller market size compared to the US means there is less competition from American brands, allowing Kiwi companies to stand out and establish brand recognition. Combined with the benefits of trade agreements like the CPTPP, which significantly lowers tariffs and eases trade restrictions, Canada becomes an ideal starting point for New Zealand businesses with lower risks and higher chances of success.
Trade agreements between New Zealand and Canada, especially the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), provide significant advantages for Kiwi businesses. Especially as all members are held to account under these agreements, as we’re seeing. As a CPTPP member, Canada offers New Zealand exporters reduced or zero tariffs on a wide range of goods and services, effectively lowering the cost of entry and making Kiwi products more competitive in Canadian markets. This agreement also simplifies regulatory processes, ensuring smoother, faster trade operations.
Beyond tariff reductions, CPTPP provides extended business visa options. This visa flexibility is ideal for establishing relationships, attending trade events, and exploring new market opportunities. The combination of reduced trade costs, simpler regulatory requirements, and ease of travel helps streamline the expansion process, making Canada an attractive market where New Zealand businesses can grow their brand presence and gain valuable insights into the North American market.
Canada’s consumer patterns are strongly influenced by its climate, where seasonality plays a significant role. For instance, winter and summer seasons dramatically affect purchasing habits, with certain products in demand only during specific times of the year. Businesses should be prepared for these seasonal shifts to optimise inventory and marketing efforts.
Language is a consideration, as product labelling must be in both English and French, particularly in Quebec, where French is predominant. Compliance with these regulations is crucial for market entry and consumer trust.
Additionally, while Canadians value personal connections in business, they generally expect formal, documented agreements rather than handshake deals. This isn’t anything unusual, but means at all levels of business there will be a due diligence process to go through that New Zealand businesses should be aware of.
Canada’s diverse economy offers several high-potential sectors where New Zealand businesses can thrive. Agritech is a standout opportunity, as Canada’s strong agricultural industry increasingly looks for sustainable and efficient solutions, aligning well with New Zealand’s expertise in innovative farming technologies. Similarly, health tech is a rapidly growing field, with Canadian healthcare embracing digital tools and telehealth services—a great fit for New Zealand companies with proven health innovations.
The premium food and beverage sector also presents significant potential. While Canadian consumers tend to favour local products, they are attracted to high-quality imports with unique offerings, such as New Zealand wine, lamb, and specialty food products. To compete, Kiwi brands should emphasise their distinctiveness and premium quality, positioning themselves as “exclusive” or “artisan.”
By targeting these specific sectors, New Zealand businesses can leverage their strengths and increase brand appeal, building a strong foothold in Canada’s receptive, diverse market.
Rather than targeting the entire country, a phased approach focusing on specific regions can optimise resources and improve success. Alberta, for example, offers a favourable starting point with economic and demographic similarities to New Zealand, including a population size of around five million and a strong agricultural and tech base. Testing products in such a region provides valuable insights and minimises risk before expanding to larger markets like Ontario or British Columbia.
Building local partnerships is also crucial. By collaborating with Canadian distributors or industry experts, New Zealand companies can better navigate regulatory requirements and understand regional consumer preferences. Additionally, Canadian provinces vary greatly in culture and demand, so tailoring marketing strategies for each area—such as bilingual labelling in Quebec or eco-focused messaging in British Columbia—can make a big difference. This tailored, regional approach can enable Kiwi businesses to establish a lasting presence in Canada.
Canada offers a unique and strategic entry point into the North American market, combining cultural alignment, manageable competition, and the benefits of trade agreements like the CPTPP. By focusing on high-potential sectors such as agritech, health tech, and premium food and beverages, Kiwi exporters can capitalise on Canada’s receptive market and appetite for innovation. Navigating Canadian consumer behaviours and cultural nuances, and adopting a phased, region-specific entry strategy, will further enhance the chances of success.
