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Elevate Magazine
January 14, 2025

Mānuka Honey Faces 26% Export Decline, Report Says

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Photo Source: ROMAN ODINTSOV

The future of New Zealand’s high-value mānuka honey market hangs in the balance, with a dramatic downturn detailed in Coriolis Research’s After the Goldrush report. However, amidst the adversity, experts see potential for recovery in the industry.

A Premium Product Facing Pressure

While mānuka honey makes up more than 90% of New Zealand’s honey export market, its fortunes have faltered since 2020. A 26% drop in export demand has resulted in oversupply, pushing down prices. The value of lower-grade mānuka honey now mirrors that of clover honey, and production has fallen by 56% from 2020 to 2023.

Structural Challenges

The Coriolis report points to several critical mistakes that have exacerbated the industry’s downturn. These include:

  • Failure to Protect the Mānuka Name Internationally: This has allowed unethical practices to harm the product’s reputation.
  • Weak Regulatory Framework: A lack of cohesive governance has enabled substandard operators to persist in the market.
  • Excessive Bulk Exports: This practice has undermined the brand’s premium image.
  • Missed Opportunities: Industry-wide rejection of a levy and poor inventory management have further hampered growth.

The struggles facing the mānuka honey industry are compounded by a steady decline in beekeeping operations. Beekeeping enterprises have fallen by 15%, and hive numbers have decreased by 10% each year since 2019.

Learning from Global Success Stories

Coriolis highlights a potential shift toward sustainable growth for the mānuka honey industry despite the current downturn. The report draws on models from Champagne, Cognac, and Parmigiano-Reggiano, recommending stronger governance, unified branding, and robust quality controls. It also underscores opportunities in rising markets like Africa and Asia, with continued demand in North America.

Industry Efforts and Early Signs of Recovery

Apiculture New Zealand supports the findings of the Coriolis report, with chief executive Karin Kos calling it a “fair assessment.” Kos highlighted that the report’s conclusions align with the New Zealand Honey Strategy launched last year.

She noted an 11% rise in honey export revenue to $419 million by June 2024, despite challenges like supply-demand imbalances and economic uncertainty, spurred by monofloral mānuka honey retail packs.

The removal of tariffs in the British and EU markets and signs of global consumer confidence recovery were also positive developments. “The report confirms the continued strength and positioning of mānuka honey… and that the key to continuing success of the sector is retaining that premium which we are addressing via the New Zealand Honey Strategy,” Kos said.

Looking Ahead

According to the Coriolis report, the beekeeping industry in New Zealand is projected to stabilise long-term, with around 4,000 beekeeping firms, 35,000–40,000 apiaries, and 350,000–500,000 hives. It also estimates that 1,600 firms are actively trading New Zealand honey, with major export markets spanning Australia, the UK, Europe, the US, and Canada.

The mānuka honey industry will need to emphasise governance, quality, and global market expansion to preserve its premium position and secure its future.