Honey consumption in China

Over the past decade, the global honey trade has grown from US $1.5 billion to US $2.02 billion, with China being the No.1 honey exporter and producer.¹ China can produce 400,000-500,000 tons of honey annually, among which 13,000-150,000 tons are exported overseas. The export rate reaches 25%-30%.²

Most Chinese families have the habit of eating honey, which inherits from their predecessors as a traditional “food supplement” concept. Honey has been known by the Chinese to have a nourishing effect since ancient times and has efficacy in alleviating hangover, soothing intestines, relieving coughs, and replenishing energy. Therefore, Chinese consumers, no matter young or old, have good affection for honey. According to the Alibaba Health Report, in 2019, honey ranked the third in post-90s consumers’ preferences of traditional nutrition, only after tea and goji berry.

Although honey has a wide recognition among consumers as a healthy tonic food, the consumption is not that stunning due to the lack of leading brands and weak consumer confidence caused by rampant fake honey products.

Chinese consumption of honey is far from that of foreign countries. European countries consume 1-2 kg of honey per capita per year, while Turkey consumes around 10 kg.2 China, the world's largest honey producer, consumes only about 200 g per person per year.

Imported products occupy domestic high-end market

In sharp contrast to China’s high production capacity is the low market competition for domestic brands. The vast majority of manufacturers are small and medium-sized enterprises, mainly selling through offline channels such as supermarkets and franchising stores, with brand positioning at low-end market. Besides, most domestic brands are still targeting the aged group. These brands have not adapted to the new consumption environment, failed product iteration and transformation in the consumption upgrade, and therefore lose favor with modern young people.

Currently, the domestic premium honey market has been occupied by imported brands. Imported honey products mainly come from Australia, New Zealand, Germany, France, Russia, etc.

For example, Manuka Honey has become one of the most popular honey in the Chinese market in recent years. It highlights the antibacterial, antiviral and anti-inflammatory properties due to its unique substance UMF (Unique Manuka Factor) that can be used to aid wound healing, promoting oral health, treating stomach ulcers, to name a few.

The pronounced nutritional and medical value has boosted the fame of Manuka Honey among Chinese consumers, especially young people, who live a high-paced life under high-pressure and thus are eager for health.

Meanwhile, Manuka Honey is one of the most expensive honeys sold in China. It is graded and priced by the UMF purity and quality as a measure to rate the product potency. Generally, the UMF can be 5+, 10+, 15+, or 20+. The higher the UMF rating, the stronger the antibacterial ability and the higher the price.

Now, if you search the key word “honey” on e-commerce platform Tmall, nearly half of the result is Manuka honey. The price of a 250g Manuka honey ranges from around 100 yuan for UMF5+ to more than 1,000 yuan for UMF20+. Despite the high price, Manuka honey delivers brilliant sales on Tmall, with leading brands coming from New Zealand.

Top 3 New Zealand Manuka Honey Brands’ Performance on Tmall

(Data were collected on August 8)

From left to right: Richora, Comvita, NZ Gold Health

The latest opportunities for honey products

As the Chinese consumption market is upgrading towards health and quality, and the new generation of consumers is increasing health awareness, the honey category has vast development potential due to its efficacy on health and beautifying. Females are still the core consumers of honey products.

In addition to pure honey, brands can use honey in cereals, beverages, baked food, and sauces, as it is a versatile seasoning and supplement. For example, it is a good partner of snacks. Several years ago, South Korean snack brand Lotte's honey butter-flavored potato chips were all the rage in the Chinese market. The honey-butter flavor has since made its way into other snack categories such as nuts and cookies. The honey lemon passion fruit tea is another example, which is popular among young girls every summer due to its whitening effects. There are more than 30,000 notes on Little Red Book, Chinese online shopping platform and social media, sharing self-made honey lemon passion fruit tea by users.

Honey lemon passion fruit tea is popular among Chinese young girls

Honey is also a healthier and more natural substitute for cane sugar. The honey itself is produced in a way that meets consumer expectations for a healthy and sustainable diet that is "natural," "non-processed," "unrefined," and "good for the environment.” For example, Chinese dairy company Bright Dairy’s sugar-free yogurt brand Rushi attaches a honey sachet with each of its product to provide consumers a flavor adjustment option. 

Rushi yogurt contains a honey sachet

Brands can also use honey to formulate immune and antiviral products and energy-enhancing functional food products. For example, many foreign brands have launched honey lozenges to align with Chinese consumers’ increasing needs for solving sore throat. Other innovative functional combinations include honey enzyme jelly/juice, and honey hyaluronic acid gummies, etc.

Australian brand Bio-E’s pumpkin fermented juice added with Manuka honey