Exports of New Zealand food and beverages are expected to double in value over the next 15 years to 40 billion U.S. dollars, driven by demand in China and the rest of Asia, according to a government report released Thursday.

The report published by the Ministry of Business, Innovation and Employment showed that New Zealand still had great potential for intensifying or expanding the area devoted to food production, as well as adequate water and problems with animal diseases.

It said New Zealand was in a "fundamental transition" from feeding westerners to feeding the Asia-Pacific region.

Of the country's 21 billion U.S. dollars of food and beverage exports in 2012, Asia was the largest destination region taking more than 40 percent, while China was the largest single destination, taking 3.2 billion U.S. dollars in food and beverage exports.

About 25 percent of New Zealand's food and beverage industry by turnover was foreign-owned, according to the report titled the " Investors' Guide to the New Zealand Food and Beverage Industry."

"Major capital investments have been made in the food and beverage industry in the last several years totalling 2 billion NZ dollars (1.73 billion U.S. dollars), with an additional 1.5 billion NZ dollars (1.29 billion U.S. dollars) of assets changing hands," Economic Development Minister Steven Joyce said on the release of the report.

"Doubling exports in real terms in 15 years is a tall order, but all the research backed by the steady flow of business investment and growing demand for New Zealand products suggests it is achievable," Joyce said in a statement.