One in 100 New Zealanders are diagnosed with coeliac disease which requires a strict gluten-free diet, Cremades said.
Demand for gluten-free products was growing worldwide, offering significant opportunities for the company.
Prime Minister Bill English who opened the factory, was quick to comment on how positive the expansion was in the wake of the announcement that Cadbury's Dunedin factory would likely close next year.
He said the investment by Nestlé was a sign that New Zealand's manufacturing sector was still performing well.
The Wiri site employs around 280 people and Nestlé professional country manager Eleni Gonzalez said the investment would allow the company to focus on expansion.
"While we have been increasing our gluten free range for some years, capacity constraints have limited the range," Gonzalez said.
"This new facility gives us significant additional capacity, with room to grow."