Honey Market Gets Stickier: Competition increases among top producing countries

The global demand for Honey has been increasing, and traditionally large producers in South America and North America are now playing alongside Asian giants, such as China, Vietnam, India, and Taiwan to meet the demand. These cheaper imports have pushed down global prices of honey significantly, and the competition is expected to become fiercer as these countries rise in prominence.

Recent trends of major exporting countries

Mexico

Main variety for export: Orange Blossom Honey, Organic Honey

Mexico’s honey production has been hit severely by urbanization which caused deforestation, particularly in regions such as Yucatan, while the influx of cheaper honey from China lowered prices.

New Zealand

Main variety for export: Manuka Honey, Wildflower Blossom Honey

New Zealand currently has an oversupply of non-Manuka honey varieties, where there are estimates of approximately 30-40 thousand tons of non-Manuka honey in stock. Manuka honey, on the other hand, has been at high demand as it is known widely for its antibacterial properties. Production for Manuka honey has been low for the past four years but this season, production has reportedly doubled, with good weather conditions.

New Zealand, however, is facing ever-increasing competition domestically as well as internationally; The number of beekeepers has increased and honey incorrectly under the name Manuka continues to be sold in the overseas market. The New Zealand government has cracked down “fake” Manuka honey with attempts to trademark the name Manuka and standardize the definition of Manuka honey.

Argentina

Main variety for export: (Mixed Flowers) White, Extra Light Honey

Argentina is one of the largest honey exporters in the world but has been suffering from a massive annual death of its bees, which has last been recorded in 2018 to be 30% of the total population.

Brazil

Main variety for export: Wildflower Blossom Honey, Eucalyptus Blossom Honey, Orange Blossom Honey, Organic Wildflower Honey

Brazil’s previous harvest, which consisted mostly of Eucalyptus honey, had a regular harvest, despite fears of a decrease in production due to the coronavirus. The production volume for this year is expected to reach 40K tons, which is on the higher-end as the average yearly honey yield in Brazil is between 32K-42K tons.

Export prices have decreased significantly as the Brazillian currency devalued against the dollar, and international demand has increased. However, domestic demand for honey is down with pandemic-related closures in the hospitality industry.

Ukraine

Main variety for export: (Sunflower) White, Extra Light Honey

Ukraine has grown in prominence within the honey market, with increases in not only the volume of exports but also the number of exporters, from a handful of companies to more than 70. Quotas for honey shipment in the EU are also being fulfilled quickly, where last year’s quota was 6,000 MT and was completed by mid-January.

China

Main variety for export: Multifloral (Acacia, Longan, Eucalyptus, Rape, Buckwheat) Natural Honey

Although China is well known for its massive production capacity, with a low reputation of its honey, Chinese consumers are turning more to imports for their honey fix. In terms of imports, New Zealand honey has been the most popular. As stated by KOTRA, New Zealand honey takes up approximately two-thirds of Chinese honey imports. Canadian and Vietnamese honey have also been gaining interest.

Trade flow in recent years

The global demand for honey has been consistently on the rise, with the honey market expected to generate a value of around USD 10 Billion by 2025. The main exporting countries include China, New Zealand, Argentina, Brazil, and Ukraine, while key importing markets are the United States, Western Europe, and parts of East Asia.

The EU and North America take up the lion’s share of global honey imports, with 38.3% and 35.8% respectively in 2018. China has remained a steady source of imports in the EU market, along with Ukraine. With worries regarding the safety of Chinese honey products, there was a temporary ban in 2002-2004 which was soon eliminated as the EU is heavily reliant on imports to meet the rising demand.

With the reopening of the EU, Chinese honey flooded the EU market, especially as honey regulations are loosely enforced, which in 2019, recorded 79.2K tons, out of total imports of 210K tons. Suppliers report that fraudulent honey is commonplace, with reports from the international beekeeping conference Apimondia stating that nearly one-third of all internationally traded honey are not sourced from bees.

The United States imports honey from China as well, but it is minimal compared to other traditional markets such as Argentina, Brazil, Canada, Mexico, and Uruguay. The Americas are still a prominent import market, but other Asian markets such as Vietnam, Taiwan, and India have risen in prominence over the years.

According to the Bee World Journal, the former markets took up 62% of total US imports in 2012, but in 2017, the new markets dominated 53% of total imports. This comes at a time when domestic production in the US has been decreasing, while imports are increasing to satisfy the demand.

However, similar to the EU, there are claims made that these imports are counterfeit, or have been re-exported from China, which is why they are able to maintain their low price points.

Fraudulent honey that is imported or either created in the country of origin by using other ingredients, such as sugar beet or syrup has caused products to be at shockingly low price points, causing beekeepers to struggle in competing in their local markets. This is especially detrimental to markets that endorse organic honey or specialty honey, such as Brazil and New Zealand.

Rising Sourcing Destination: Vietnam

Rising sourcing destinations for honey are concentrated in the Asian markets, where honey is sold for attractive price points. Vietnam is one of those countries, where it competes with the Indian market in terms of its prices to become one of the cheapest honey globally.

However, these cheap prices sometimes come at the expense of quality, in which honey is either harvested early or includes artificial enhancements. There have also been records of China using Vietnam and other Asian countries to re-export their products to avoid anti-dumping duties. For consumers, however, this might paint a different picture, as many are looking to get a bargain, and with the global decline in the hive population, pure honey is hard to keep up.

Recognizing this, Vietnam is making efforts to improve its quality of honey, with increases in foreign honey bee species, and increasing domestic consumer confidence in its honey.

Major Importers of Honey

Europe

Europe is highly dependent on imports for its honey supply, and much like other countries, the hive population is decreasing, while the demand for honey remains high.

Germany

Approximately 80% of Germany’s honey supply is gained through imports, while the remaining 20% is through domestic production, according to the Georgia Farmer’s Association. Bulk honey is the most common form of imports, which is then repackaged and reprocessed domestically. Within the market, floral honey is the most prevalent, and the cheapest. With premium honey varieties such as Manuka, prices can go higher, and even more so if the honey is produced locally or organic with fair trade certifications. Consumers are generally willing to pay more for honey if they have these qualifications and if they contain medicinal properties.

In 2019, German imports of honey came mainly from Mexico, Argentina, Ukraine, and New Zealand. Argentina used to be the leading source for imports, but ever since there has been a decline in production, alternative sources, such as Ukraine, became a more attractive option, even more so as the EU has granted Ukraine duty-free quotas for honey imports.

Honey imports to Germany must firstly abide by the EU standards for product quality, as well as international standards (CODEX) if possible. Traceability of products is important as well but is not always followed through.

United Kingdom

The UK is one of the top importers of honey in Europe, which in 2019, China has been listed as its top exporter, with New Zealand following. While New Zealand exports a much smaller quantity, it has a relatively similar export value, indicating the type of honey which is exported from the two countries, where New Zealand honey is on the pricier side, with premium varieties.

The UK also complies with the EU standards of honey imports, documentations, and legislations.

France

France has a strong domestic honey system, but due to the inevitable decline in production, like other countries, it has started to lean towards imports. Like Germany, bulk imports are common, with approximately 20-30% of imports going towards industrial uses, consisting of cheaper Chinese honey imports, approximately 20% towards wholesalers which then funneled to specialty shops selling monofloral honey, with approximately 55% of imported honey goes toward large retailers (Carrefour, Auchan, etc.), consisting of packed poly-floral honey.

Compliance for honey imports is aligned with the general food and hygiene standards, CODEX, EU organic legislation, national decrees on honey, and any other EU decrees overseeing honey quality.

United States

According to the USDA National Honey Report, natural organic honey, comb honey, natural light amber honey, natural amber/darker honey, natural white honey, and natural extra light honey is imported in the US. Natural organic honey imports are predominantly from the Brazillian market, with Indian, Vietnamese, and Argentinian markets taking up most of natural light amber honey imports.

Regulations for importing honey to the US requires adhering to the FDA and USDA guidelines. However, even with these regulations, adulterated honey is frequently seen in retail stores, as new techniques are formed to bypass quality tests, and much of the certifications are not as strictly enforced.

Sources

• USDA. "National Honey Report."
• Georgian Farmer's Association. "Honey in Germany."
• Taylor & Francis. "The Current Situation on the International Honey Market."
• GFA Consulting Group. "Honey in France."
• KOTRA. "China, imported honey leading in popularity." Translated from Korean.