nextHoney 2024
After the goldrush
The current situation in the New Zealand Honey industry
Courtesy version of nextHoney 2024
The Future of the New Zealand Honey Industry: From Gold Rush to Sustainable Growth
The New Zealand honey industry, once propelled by the global demand for mānuka honey, now faces new challenges and opportunities as it shifts from a period of rapid expansion to one focused on sustainable growth. This report highlights the state of the industry, addressing key hurdles, successes, and strategic initiatives needed to secure its future.
New Zealand: A Leader in Premium Honey
Ranked second globally by value, New Zealand’s honey sector, led by mānuka honey, continues to command a premium position in the global market due to its unique antibacterial properties. New Zealand captures 9% of global honey trade value, despite producing only 1% of the volume. Mānuka honey, now a scientifically backed product with standardised ratings (UMF/MGO), is highly sought after for its medicinal and health benefits, making it a cornerstone of New Zealand’s honey exports.
Challenges Post-Gold Rush
Since the peak in 2020, when export volumes and prices were at an all-time high, the industry has seen a 26% decline in exports, with total honey exports valued at US$243 million in 2023. This decline in demand has led to an oversupply of mānuka honey, bringing significant price pressure on the market.
Simultaneously, the number of beekeepers, hives, and honey production has sharply dropped, particularly in the North Island. Industry projections suggest a future stabilisation, but this transition will require careful navigation to maintain New Zealand’s premium status.
Strategic Missteps and Lessons Learned
Several key mistakes have been identified in the management of mānuka honey. These include:
Failure to protect the "mānuka" name internationally.
Lack of a unified industry body.
Inconsistent quality standards/ratings (UMF, MGO, NPA, etc.).
A weak regulatory framework allowing unethical operators to remain.
Continued bulk exports diminishing brand value.
Missed opportunities due to the rejection of an industry levy.
Poor inventory management.
Looking Ahead: A Path to Sustainable Growth
Despite these setbacks, there is significant potential for the industry to pivot towards sustainable growth. With honey demand remaining strong globally, particularly in underdeveloped markets in Africa and Asia, New Zealand is well-positioned to expand its footprint. To sustain premium pricing, the industry must focus on strengthening its regulatory frameworks, maintaining quality, and investing in research and innovation.
We recommend studying successful product regions such as Champagne and Cognac, which have managed to preserve their premium status through strong governance, unified branding, and quality control.