The Indian Honey Market – Opportunity with Obstacles

The biggest food trade show in the most populous country on earth, World Food India, proved an eye-opening experience for the UMF Honey Association (UMFHA) in September. Marketing manager Campbell Naish reports on what we know about a potentially huge honey market and why – at least to this point – it has gone largely untapped by Kiwi honey producers.

 By Campbell Naish

The New Zealand government is working hard to forge a Free Trade Agreement between New Zealand and India. To support the efforts, UMFHA was one of a group of New Zealand Food Associations to attend World Food India in New Delhi September 25-28 hosted by New Zealand Trade and Enterprise, the Ministry of Foreign Affairs and Trade (MFAT) and the Ministry of Business, Innovation and Employment.

UMF Honey Association marketing manager Campbell Naish, left, talks mānuka honey at the World Food India event in New Delhi in September.

The event was also a fact-finding opportunity in the one great economic market yet to be established by mānuka honey exporters.

The event in the Indian capital and the world’s second most populous city became an excellent opportunity to explain the differences between mānuka honey and other honeys and the benefits to India and New Zealand for our apiculture industries to work closer together. 

The UMFHA stand had four busy days educating attendees about mānuka honey and learning about what considerations are important for anyone looking at India as a market. Here’s some of the key insights…

• Currently honey from New Zealand incurs a 65% tariff when imported. MFAT negotiators are working hard on clarifying why mānuka honey is not a threat to Indian producers. Honey has a history spanning thousands of years in Indian food, health and agriculture. It is regarded as an important product for helping rural populations grow their wealth, therefore the inclination to protect their producers will be hard to overcome.

  

  The UMF Honey Association was among a team of New Zealand food associations to attend the World Food India event in an attempt to increase trade to the world’s most populous nation.

• Mānuka honey is still out of reach of all but the wealthiest consumers. For example, 250g of Indian multifloral honey online could cost INR 35 (NZD0.70) vs a UMF 5+ on the same marketplace costing between INR 2,100 – 4,600 (NZD 42-80).

• UMFHA estimates the current market for mānuka honey at 14.5m people who will be spread across India’s eight tier-one cities.

  
  

  

  
  

• Indian has its own healthy honey culture so New Zealand brands entering the market need strong market entry plans that identify clearly what their point of difference is to Indian honey health propositions and how their brand will communicate with the top 1% of the market.

• Other considerations

  • The Indian climate means identifying a supply chain and retail solution that can take care of your mānuka honey is essential.

  • The market is complex so identifying proven market partners to help identify and navigate opportunities and logistics is vital.

  • A lot of Indian honey is legally diluted with sugar and water for the local market. There is appreciation of the quality of New Zealand honey and quality systems.

With or without tariffs, the current opportunity in India is about growth. While the target market may be small initially, India is the fastest growing major economy in the world and demand for quality goods and natural products is beginning to rise.

There is an opportunity for New Zealand mānuka honey brands to build our strongest natural health market yet by investing in taking a single high quality, New Zealand health proposition, under the world’s best standard, to Indian consumers and making it a household staple.

For further information regarding what was learned in India, or how UMFHA can support honey exporters through education, partnering with officials, researchers and the honey industry in India, Campbell Naish can be contacted via email, enquiry@umf.org.nz