Increased demand for manuka honey

Published 2021년 5월 27일

Manuka honey had its exports increase substantially during the pandemic due to its anti-inflammatory and antioxidant properties. The main producers are New Zealand and Australia. The exports of honey in New Zealand have increased by 43% in value in 2020 and production reached a record of 23,000 MT. This year, the New Zealand beekeepers are trying to protect the “Manuka” name and entered with legal actions on exclusive name use, which is a threat to the Australian producers, who try to discuss better options.

Manuka honey is a monofloral honey produced from manuka flowers. It has a distinctive dark color, known for its anti-inflammatory, antioxidant, and antibacterial properties. New Zealand and Australia are the main producers of manuka honey, as the plants are highly concentrated in those countries. During the pandemic, the demand for manuka honey has surged due to the medical properties, and consequently, New Zealand’s MY 2019/20 export value of honey has increased by 43.6% on YoY comparison. In 2020, the manuka honey from New Zealand was exported to more than 40 countries and represented 76% of exported volume. The average pricing paid by the monofloral manuka honey was USD 55.36 per kg, 70% higher than the multi-floral manuka (manuka flower is not the only source of honey) and 2.5 times higher than the common honey. The high price achieved by manuka honey made New Zealand the world leader in honey exports by value, surpassing China for the first time with 14 thousand MT exported, 9.4 times less than the volume exported by China.

Source: Tridge, ITC

According to the Apiculture Monitoring Programme in New Zealand, high prices of manuka honey have increased the interest in beekeeping. In 2014, there were only 507,250 hives registered, and by September 2020, this number increased by 160% to 854,477. This upward trend is expected to continue as international demand and recognition grow. The production volume of honey MY 2019/20 achieved a record of 23,000 MT.

The manuka brand controversy

Beekeepers from New Zealand are working on legally registering the “Manuka” name to get exclusivity on its use. “Manuka” is a Maori word, and they claim that “Manuka honey” is originally from New Zealand and should be used for manuka honey produced only in New Zealand. Moreover, Australians call manuka for all 80 varieties of Leptospermum when it should be only the Leptospermum scoparium. The Australian producers claim that the manuka honey has been produced in Australia since the 1840s, and the quality of the manuka honey produced in Australia is the same as New Zealand’s and that. Legal procedures from the New Zealand government have already started in China, the EU, and the USA for the exclusivity of “Manuka” use. This move concerns Australian producers that embarked on production as the global high prices and demand for manuka honey were very attractive. The rebranding will take years to take off and hurt many producers in the process.

Australian honey production had a production volume of 18.5 thousand MT in 2019, down 7.5% from the average production. The export volume of honey had a YoY increase by 6.8% in 2020, reaching 4.2 thousand MT. If the exclusivity move on the manuka label from New Zealand is accepted, Australia will not be able to sell honey under the name “Manuka”. Conversations between Australia and New Zealand’s beekeepers are still ongoing to negotiate a better option.