Daily readership of the biggest-selling book in history has dropped to about 10 per cent for both the Christian and total population as the ancient text competes with modern technology and changing modes of communication.
The Bible Society, which undertook the research, is now working on a raft of "creative strategies" - including websites, podcasts, audio broadcasts and text messaging - to get the younger generation hooked.
Society spokesman Stephen Opie said though the Bible was readily available, with 60,000 copies sold last year, it was "tending to sit on the shelf" in homes.
"That is a very scary prospect for the future of the church. The Bible is fundamental to Christianity," he said.
"People aren't understanding it, they don't know it and they don't know the over-arching story. It is a crisis - especially for the church."
Modern technology such as the Internet and mobile phones had played a big part in the slump, Mr Opie said.
"Communication is getting short and sharp. People are moving away from reading large chunks of text.
"People would rather plug in their i-Pod in their ears than open up a bible."
More than 3300 people responded to the society's online survey between March and June.
The findings were part of a report entitled Bible Engagement in New Zealand: Survey of Attitudes and Behaviour.
They show that while 68 per cent of all New Zealanders owned a bible, just 23 per cent read it at least once a month.
A mere seven per cent read the book daily and nine per cent read it every week.
Mr Opie has been assigned the role of "reconnecting the post-modern generation" with the publication.
But on the Kapiti Coast there are no such fears, as members of the Anglican Church conduct a "Bibleathon" to celebrate the centenary of the parish.
The group started a cover-to-cover reading aloud of the Bible on Wednesday and are scheduled to finish this afternoon.
Just over two million people - about half the population - identified themselves as affiliated with a Christian religion in the 2006 census.
Bishop Richard Randerson said the fact 24 per cent of Christians read the text weekly or more was significant.
The retired dean of Auckland's Holy Trinity Cathedral said despite an overall decline in church attendance in the past 50 years, there was a much deeper sense of engagement with the Bible and the Christian faith.
"People belong to a church out of choice, and not from habit.
"Choice indicates a greater commitment."
