MĀNUKA HONEY IN THE UNITED STATES - Know - New Zealand Trade and Enterprise
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MĀNUKA
HONEY
IN THE
UNITED
STATES
Know
How
August 2018
Report Summary
This report was created to share
insights from recent NZTE research
on the market for New Zealand
mānuka honey in the United States.
The key takeaways are:
• The United States is a high-value market for • Pricing and label clarity are important areas to keep
New Zealand honey. an eye on, as consumers like to be reassured they’re
• The big sales action seems to be online. buying good quality and getting a fair deal on pricing.
• Pricing is a big challenge for brands – and consumers. • The choice of channel is important for New Zealand
• Around 18 percent of US adults are aware of mānuka brands as the major potential for mānuka sales appears
honey, with Americans valuing mānuka honey for its to be online, or in specialised retailers which can offer
health properties. the right price positioning for premium New Zealand
mānuka honey products.
• New Zealand’s export growth in honey comes from
value rather than volume and we lead the world for • Health is the top driver for purchase and consumption
price per kilogram exported. of mānuka honey in the US and New Zealand exporters
should make the most of mānuka honey’s healthy
• Mānuka honey is likely driving this growth and has
reputation (within regulatory limits) when positioning
strong potential in the United States.
their products in the US.
2
Contents
SECTION 1 SECTION 2 SECTION 3
What this report is about Report highlights The bigger picture:
New Zealand honey globally
Page 4 Page 6 Page 8
Go to module Go to module Go to module
SECTION 4 SECTION 5 SECTION 6
New Zealand honey in the Products, packaging Understanding mānuka honey
United States and pricing consumers
Page 10 Page 16 Page 23
Go to module Go to module Go to module
SECTION 7 SECTION 8
Looking ahead – Sources and methodology
key takeaways
Page 37 Page 39
Go to module Go to module
3
SECTION 1 What this report is about
SECTION 1 WHAT THIS REPORT IS ABOUT
This report was created to Sources used Disclaimer
share insights from recent Most data in this report comes from a NZTE- This document is provided subject to NZTE’s
commissioned online survey of 7,000 US Terms of Use, available online at nzte.govt.nz/
NZTE research on the market
consumers, conducted during May 2018. This en/terms-of-use/. “Site” in the Terms refers to
for New Zealand mānuka survey used a national representative sample this document.
honey in the United States. of adults (aged over 18) by gender, age and
This document only contains general
It’s designed to give you an introduction to the location across the United States.
information and is not formal advice. NZTE
US market, key information on sales channels,
The guide also draws on data from third-party does not endorse or warrant the accuracy,
product characteristics and pricing,
research, UN Comtrade trade statistics, online reliability or fitness for any purpose of any
and a snapshot of US consumer behaviour and
research, and NZTE staff visits to a range of information provided.
attitudes towards mānuka honey.
physical stores in San Francisco during April
It is recommended that you seek independent
It also suggests some key areas for and May 2018.
advice on any matter related to the use of this
New Zealand exporters to consider when
You can find full details on sources and survey information. In no event will NZTE be liable for
tackling the US market as an export destination
methodology at the end of this report. any loss or damage whatsoever arising from
for mānuka honey products.
the use of the information.
5
SECTION 2 Report highlights
SECTION 2 REPORT HIGHLIGHTS
The United States is a high-value Pricing is a big challenge for Americans value mānuka
market for New Zealand honey brands – and consumers honey for its health properties
New Zealand honey exports to the US were worth There’s huge variation in mānuka honey jar sizes, Most US consumers who know about mānuka
US$49 million in 2017, our second most valuable channels, brands and product grading systems. honey believe it has health benefits, and those
export market after China. Growth is being driven Consumers struggle to make price comparisons properties are a leading reason for purchase
by value rather than volume, almost certainly and have confidence that a product is good and consumption. This raises mānuka honey
being led by mānuka honey. New Zealand honey value. It’s even more complex on online above the level of a breakfast commodity – but
in the US sells for almost eight times more per platforms such as Amazon, where prices vary it also means potential competitive threats
kilogram than honey from other countries. over time and big gaps can appear between from other emerging ‘superfoods’ and dietary
official and third-party sellers. supplements, as well as healthy honey from
The big sales action seems other countries.
to be online Around 18 percent of US adults
Over the last year, mass merchandise only are aware of mānuka honey
accounted for US$3.9 million in mānuka honey Mānuka awareness is higher in major cities and
sales, compared to US$49 million in total population centres, especially in California and
New Zealand honey exports to the US – which the Western states. Buying patterns are skewed
suggests that online channels are dominating towards men, and towards people who pursue
both value and volume. Specialised independent healthier lifestyles (including dieting, exercise
health or gourmet stores also have potential, but regimes and taking dietary supplements).
tend to be more difficult as a platform for launch
or sales growth.
Source: ITC, trade data for HS code 0409 – Natural honey
7SECTION 3 The bigger picture: New Zealand honey globally
SECTION 3 THE BIGGER PICTURE: NEW ZEALAND HONEY GLOBALLY
Our export growth in honey We lead the world for price Mānuka honey is likely
comes from value rather than per kilogram exported driving this growth
volume Our honey sells for the highest price per Mānuka honey is the most expensive honey
New Zealand ranks 14th in the world for kilogram of any major exporter (countries on average, and has gained huge profile in
volume of honey exported, but second in the selling over $5 million a year). international markets.
world by value. In 2017, the average value of New Zealand Although it’s hard to track precise export
We exported US$269 million worth of honey honey was US$24.30 per kilo – up more than volumes, the mānuka honey trend – thanks
in 2017, just behind China (US$271 million). US$10 in the last four years alone. to reality TV stars, social influencers, actors,
athletes, and media coverage – is likely
The value of New Zealand honey exports By comparison, honey exported from the UK
behind most of New Zealand’s high-value
almost doubled from 2013 to 2017, while the sells for an average US$11 per kilo.
honey exports.
volume exported only grew by 3.7 percent
annually over the same period.
Source: ITC, trade data
9SECTION 4 New Zealand honey in the United States
SECTION 4 NEW ZEALAND HONEY IN THE UNITED STATES
Import data and trends
After China, the United States New Zealand honey destinations by value (US$million)
is the second biggest export 70,000 China
market for New Zealand honey 60,000 USA
United Kingdom
US imports of our honey rose sharply in 2017 by 50,000
Australia
both volume and value. Together, the US and 40,000
Japan
China represent 42 percent of New Zealand’s 30,000
honey exports by value. 20,000
10,000
0
2013 2014 2015 2016 2017
NZ honey exports – Value share 2017
China
14%
USA
24%
5% United Kingdom
New Zealand honey destinations by volume (tons)
6% Australia
Japan
3,010 China
9% Singapore
18% USA
Hong Kong, China 2,510
10% United Kingdom
Others
14% 2,010 Australia
1,510 Japan
1,010
510
10
2013 2014 2015 2016 2017
Source: ITC, trade data
11SECTION 4 NEW ZEALAND HONEY IN THE UNITED STATES
New Zealand honey stands out Top 10 suppliers of honey to the USA – USD 000’s – 2013-2017
from low-value imports 600,000
Imported value in 2013
Imported value in 2014
Our exports to the US are driven by value, 89
500,000 Imported value in 2015
not volume. We’re the fifth largest supplier of 64 Imported value in 2016
400,000
honey to the US by value – and our honey sells 93 Imported value in 2017
in the US for eight times more per kilo than 300,000 113
other imports. 200,000
47
18
40 12
US imports of New Zealand
100,000 47 9
honey are driven by packaged
0
Brazil India Argentina Vietnam New Zealand Canada Ukraine Mexico Uruguay Thailand
goods, not bulk honey
From 2013 to 2017, the value of New Zealand
honey in jars exported to the US went up by
almost 62 percent, while the value of bulk
exports fell by 8 percent. This is a global trend
for New Zealand honey exports – but it’s Average value of honey exported to the US
particularly dramatic in the United States.
New Zealand All countries
US$ 23 US$2.80
per kg per kg
Source: ITC, trade data
12SECTION 4 NEW ZEALAND HONEY IN THE UNITED STATES
The New Zealand-US honey supply chain
Most steps in the honey supply Steps: 1 2 3 4 5 6
chain require FDA registration NZ/AU US
The federal Bioterrorism Act (which came into Retailer
Independent
(online/
force in 2003) requires companies involved in Packaging –
white label
distributor offline)
Jars
the food supply chain to register with them, Jars
and renew registration every two years.
Bulk Bulk Bulk
Customs US packer/ Brand
Producer Jars Consumer
Farms can be exempted from registration. + FDA brand owner website
A “farm” is defined as a primary production
Jars
operation under one management in a particular Jars
Packaging - Own
location which is devoted to growing or NZ/AU distribution Amazon
brand entity
harvesting crops or raising animals – secondary
operators attached to a primary producer Independent sellers
(e.g. harvesting and packing operations) can
also be included.
Costs: Producing Freight Import Freight Freight Margin
tariffs packaging margin
See the US Food and Drug Administration’s Processing
Packaging NZ US$1.9c per kg
compliance guide for small entities here:
AU US$0.0c per kg
www.fda.gov/Food/GuidanceRegulation/
GuidanceDocumentsRegulatoryInformation/
ucm331957.htm
13SECTION 4
2 NEW ZEALAND HONEY IN THE UNITED STATES
Case study: Wedderspoon Wedderspoon’s simplified supply chain:
Wedderspoon is one of the leading mānuka
honey brands in the United States. Like other offline
Organic stores
brands, they sell on Amazon, via their own Health stores
website and through other online platforms. Retailer Pharmacies
(online/ Food stores
offline) Supermarkets
They also have a very wide range of offline
retailers – including mass merchandisers like online
Swanson Vitamins
Walmart, specialised supermarkets with a Thrive Market
health image, ‘farmer’s market’ lookalikes, Jars
Brand Lucky Vitamin
Producer Wedderspoon website CVS pharmacy
and supplement retailers, and thousands Derivates Wedderspoon
Amazon
of independent pharmacies, grocers and Vitacost iHerb
boutiques in major US cities.
Amazon
Source – Wedderspoon corporate website, May 2018 – wedderspoon.com/store-locator
14SECTION 4 NEW ZEALAND HONEY IN THE UNITED STATES
Mānuka honey in US mass merchandisers
Mass merchandise – including Physical stores – Value share 2018
supermarkets, big box retailers Wedderspoon (USA)
and food stores – is a small 11% Mānuka Health New Zealand (NZ)
channel for mānuka honey
Pacific Resources International (USA)
Honey New Zealand (NZ)
11%
Food stores and supermarkets in the US sold YS Organic Bee Farms (USA)
US$3.9 million worth of mānuka honey in the year 3%
Mānuka Doctor (NZ)
2% Private label – various (USA)
to April 2018. 2%
1%
That’s a 61 percent increase on 2017 – but it’s only 69%
a tiny share of the US$49 million in mānuka honey
exports from New Zealand to the United States.
Wedderspoon dominates mānuka honey sales
through US mass merchandise channels, with
nearly 70 percent value share.
NZ honey exports Physical stores* – Physical stores* –
+61%
to the US
Total value – 2017 Total value – 2017 Total value – 2018
US$ 48m US$ 2.43m US$ 3.9m
Source: ITC trade data, and Nielsen Retail Measurement Service U.S.A. – Moving Annual Total (MAT) to April 2018.
*Excludes independent pharmacies, independent health and organic stores, and independent gourmet stores.
15SECTION 5 Products, packaging and pricing
SECTION 5 PRODUCTS, PACKAGING AND PRICING
Product features on US shelves
Here are some of the key product features of mānuka
honey on US shelves – as identified by NZTE’s research
team, across both physical stores and online retailers
Raw or pure Non-GMO and organic
Mānuka honey was presented as raw or “100 Non-GMO is becoming a more common
percent pure” more than 80 percent of the time product claim in the US market. Around
– the most common claim we saw. a quarter of brands surveyed specifically
mentioned non-GMO on the jar, and others
Mānuka honey indicators note it in their product specifications.
UMF (Unique Mānuka Factor) is a common None of the surveyed products were USDA
mark on product sold in the United States. 57 organic certified.
percent of surveyed SKUs online were UMF
certified. In stores, this dropped to 34 percent. Other certifications
The UMF indicator seems to have set a Around two-thirds of surveyed products were
standard – when UMF is not mentioned, certified as halal, kosher or both.
consumers are generally looking for the MGO
indicator. Some brands use both.
Wedderspoon, the dominant mass-market
brand, uses K Factor but is the only brand to
do so. Some private labels (for instance, Simple
Truth) use a pollen count percentage.
Source: NZTE market scan, May 2018.
17SECTION 5 PRODUCTS, PACKAGING AND PRICING
Packaging and labels – trends and legal requirements
Size Labelling Common inclusions:
• Origin – on the front or the back
250g (8.8 ounces) is the most common size Compulsory requirements:
of the jar
– 40 percent of SKUs surveyed – followed by • Statement of identity – the name
500g (17.6oz) and 1kg (35.2oz). • Mānuka indicators such as UMF,
of the food
MGO or K Factor – and UMF license where
• Quantity of product – in both metric
Shape measures and US customs measures
applicable
• Brand story
Most product is sold in jars, but some SKUs (ounces, pounds and/or fluid ounces)
include individual sachets or packs for eating • Batch numbers or traceability information
• Ingredients list
on the go. These represent only 5.7 percent • Name and address of manufacturer,
of the mānuka honey volume sold in mass packer or distributor
Material
merchandisers – but make up 12.9 percent 79 percent of mānuka packages surveyed were
• Nutrition labelling
of revenue in that channel. made of plastic, with 21 percent made of glass.
• Allergy warnings
Source: NZTE market scan, May 2018.
18SECTION 5 PRODUCTS, PACKAGING AND PRICING
Packaging and labels – health claims
Health claims are rare for Some brands use terms such as ‘medical
grade’, position their product as a dietary
mānuka honey sold in the
supplement, or make general claims around
United States supporting health. However they also make
Federal regulation applies very strict limits it clear that these statements haven’t been
around health claims for food products: evaluated by the FDA, and that the product
doesn’t claim to diagnose, treat, cure or
prevent any disease.
Authorized health claims in food labeling
are claims that have been reviewed by FDA
and are allowed on food products or dietary
supplements to show that a food or food
component may reduce the risk of a disease
or a health-related condition. Such claims are
supported by scientific evidence and may be
used on conventional foods and on dietary
supplements to characterize a relationship
between a substance (a specific food
component or a specific food) and a disease
or health-related condition”
– Authorized Health Claims That Meet the
Significant Scientific Agreement (SSA) An example label from MānukaGuard, showing product descriptions and disclaimer.
Standard – fda.gov.
Source: NZTE market scan, May 2018.
19SECTION 5 PRODUCTS, PACKAGING AND PRICING
Packaging and labels – consumer perspectives
Label understanding is an Plastic or glass? Consumers seek traceability
issue for consumers Consumers frequently ask about the as a mark of trust
The differing types of information on mānuka materials used for honey jars in online reviews Under FDA rules, honey sold in America
honey jars can make it hard for consumers to and Q&A sections. Where jars are made needs to show the name and address of the
understand what they’re buying – as shown of plastic, some brands such as Comvita, manufacturer, packer or distributor – however,
by online questions about numbers, mānuka Wedderspoon and Wild Cape specify that consumers are now seeking higher levels
indicators and health benefits. Although most their jars are BPA-free, usually on their of proof and trust than the legal minimum.
actual buyers of mānuka honey surveyed website or in product descriptions rather than Brands are satisfying this with jar labelling or
by NZTE found labels easy to understand, on the jar itself. features that allow the buyer to track their
confusing label information may be a barrier honey back to the source, or even see the
to purchase for other potential consumers. area where the bees collected their nectar.
I always want to have my honey come in a
glass jar.”
I wish I could understand the labeling that
I have seen online to see if it is used for
medicinal or for consumption. Mānuka honey
Efficacy as far as health benefits; taste;
is very expensive whch is why I have not
preferably comes in a glass jar; easy to use
purchased it because I am not sure what
and company has a wide range of products.”
types are for what things”
ON THE TOP OF EVERY JAR
OF OUR MĀNUKA HONEY
IS A CODE THAT ALLOWS
YOU TO CHECK THE
AUTHENTICITY AND
PROVENANCE OF THAT JAR.
Source: NZTE online survey, May 2018; Naki Honey and Steens Honey websites, June 2018.
20SECTION 5 PRODUCTS, PACKAGING AND PRICING
Pricing – key factors
Four main factors influence 1 Brand 3 Pack size
the price of mānuka honey American brands tend to be cheaper for The price per ounce (or kilogram) decreases
sold in the United States the same mānuka grade than New Zealand with a larger jar. Mānuka honey is an
equivalents, especially for American private
– creating a complex labels which generally don’t use the UMF
expensive product, and US consumers are
motivated by getting the best price – but
environment for both sellers indicator. Some New Zealand UMF-certified smaller jars are still very common, making the
and buyers brands sell for up to four times the price of product more affordable for casual buyers.
American private label equivalents. Some brands offer discounts for online
customers who schedule regular purchases
in advance.
2 Mānuka factor
Higher levels of methylglyoxal are directly
related to higher prices within a brand, and 4 Channel
products bearing the UMF indicator are Store positioning – boutique, specialty health
generally more expensive. Some brands use or mass merchandise – usually determines
grades which don’t relate to methylglyoxal the products stocked and thus the range
levels at all (including Simple Truth and of prices. However, prices can vary hugely
Wedderspoon). between stores, even for the exact same
mānuka honey SKU. Online prices are even
more diverse.
Source: NZTE market research, June 2018
21SECTION 5 PRODUCTS, PACKAGING AND PRICING
Pricing by channel
Most physical retailers sell only Health and specialty stores Price positioning per store (USD)
one or two brands of mānuka Chains such as Sprouts, Walgreens and
50
honey, with a maximum of Wholefoods showed higher average prices 45
when surveyed, which may mean better price
4-5 SKUs per point of sale.
40
35
positioning for premium New Zealand brands
On online platforms such as offering UMF+10 or above.
30
25
Amazon, the sky is the limit – 20
with a range of prices to match Online 15
10
When sold officially through Amazon, 5
Mass merchandisers mānuka honey prices can be up to 1.5
0
Walmart Costco Walgreens Trader Kroger City The Sprouts Wholefoods
Joe’s Market Vitamin
In general, mass merchandisers such as times higher or lower for the same product Shoppe
Walmart tend to focus on entry-level products, compared to retail. Third parties selling on The ends of the box are the upper and lower quartiles, so the
but offer a wider range of price points than Amazon can be seen charging up to ten box spans the interquartile range, the median is marked by a
other specialty stores. horizontal line inside the box. The cross marks the mean.
times more.
Amazon is a big sales channel – perhaps
Discount and club stores
the biggest – for New Zealand mānuka
Discount or club stores such as Trader Joe’s
honey companies in the United States, but
tend to have a limited number of SKUs and
managing fair and transparent pricing for the
less expensive honey overall, perhaps because
end consumer is a big challenge.
they also sell their own labels or low UMF/MGO
mānuka honeys.
This may make them a less attractive channel
for New Zealand brands selling upscale, high
UMF products.
Source: NZTE market research, June 2018
22SECTION 6 Understanding mānuka honey consumers
SECTION 6 UNDERSTANDING MĀNUKA HONEY CONSUMERS
Consumer awareness of mānuka honey
Almost one in five Americans
are aware of mānuka honey – MIDWEST
one in four in the Western states Washington 8% 15%
NORTHEAST
When 7,000 consumers across the United States 18%
were asked to name types of honey, 18 percent Wisconsin 5%
mentioned mānuka honey – putting it on a par Penn 9%
with buckwheat, acacia and eucalyptus honey.
(The best known honey type is clover, mentioned WEST
by 62 percent of respondents.)
24% Kentucky 6%
Mānuka awareness rises to 24 percent in the
South Carolina 8%
Western US, and 25 percent in California. California 25%
Respondents in the Midwest and South were
the least likely to have heard of mānuka honey.
Texas 13%
SOUTH
17%
Source: NZTE online survey, May 2018. US National representative sample; N= 7,017
24SECTION 6 UNDERSTANDING MĀNUKA HONEY CONSUMERS
Online buzz – searches and social media discussion
Search trends show a strong Google trends – Popularity of the term “mānuka honey” through Google
searches – May 2018
link between popularity and
population
Google searches for “mānuka honey” are
concentrated in large cities across the
United States – on the West Coast (Seattle,
Portland, San Francisco, Los Angeles and
San Diego), on the East Coast (New York City,
Boston, Philadelphia and Washington),
in Miami and Fort Myers in Florida, and
in other trendy locations like Denver and
Boulder, Colorado.
Population is a big factor. Out of the biggest
15 metropolitan areas in the USA, 13 had very
strong search scores for “mānuka honey”.
Source: Google Trends – popularity of online searches for “mānuka honey” between 28 April and 28 May 2018, per metro area.
25SECTION 6 UNDERSTANDING MĀNUKA HONEY CONSUMERS
Women engage more with American people showing interest for mānuka honey on Facebook – June 2018
mānuka honey on Facebook
NZTE’s survey found no statistical difference 27%
21%
between American men and women in 18%
12%
12% 11%
overall mānuka honey awareness – but in
Facebook data from June 2018, 86 percent 86% Women
54% All Facebook
of Americans who showed interest in mānuka 18-24 25-34 35-44 45-54 55-64 65+
honey were women.
14% Men
Women aged from 25 to 34 were the most 46% All Facebook
8%
interested, followed by women aged 35 to 44. 13% 19%
24% 24%
13%
This matches similar trends seen by NZTE
in the past, where women lead social media
discussion regarding premium and gourmet
food products.
Source: Facebook Audience Insights. People interested in mānuka honey in the United States, June 2018.
26SECTION 6 UNDERSTANDING MĀNUKA HONEY CONSUMERS
Brand awareness
Mānuka Health and Happy What brand(s) of mānuka honey are you aware of?
Valley were the brands most Mānuka Health 38%
recognised by the consumers
that NZTE surveyed Happy Valley 35%
Interestingly, Happy Valley ranks highly Mānuka Doctor 31%
despite not having a major retail presence
Kiva 31%
in the United States.
Watson & Son 27%
Wedderspoon 27%
Airborne 26%
Wild Cape 26%
Egmont honey 24%
Comvita 23%
Steens 23%
Tahi 23%
Others, please specify 1%
I don’t know any brand of mānuka honey 23%
Source: NZTE online survey, May 2018.
27SECTION 6 UNDERSTANDING MĀNUKA HONEY CONSUMERS
Who buys mānuka honey in the US?
Men, and people following Over the past 12 months, have you bought
mānuka honey in a jar?
healthy lifestyles, are more
likely to buy mānuka honey
Six out of ten Americans who are aware of
79%
76%
mānuka honey have given it a try. Of the
of males
nationwide group NZTE surveyed, 79 percent
of men who were aware of mānuka honey
had tried it, versus 43 percent of women.
Yes 61% 43%
of females
Follows
a diet*
Americans who exercise regularly are also
No 37%
more likely to be mānuka honey consumers.
83 percent of the buyers surveyed by NZTE
said they exercised daily. 74% 76%
Uses vitamins
People aged in their 30s, taking vitamins Has food /dietary
allergies supplements*
or dietary supplements, following a diet, or
having food allergies were also more likely
I dont know 2%
to buy.
18% 83%
Exercise
86%
Aged 30-39
Aware of daily years old
mānuka
honey
Legend: 79% of the American men aware of
mānuka honey bought some over the past 12
months. 86% of the people aged 30 to 39 and
aware of mānuka honey, bought some over the
past 12 months.
Source: NZTE online survey, May 2018. “Diet” includes vegan, vegetarian, paleo,
Atkins, ketogenic, Mediterranean, or Weight Watchers diets.
28SECTION 6 UNDERSTANDING MĀNUKA HONEY CONSUMERS
Purchasing drivers
Origin, price and sustainability What are the most important features you look for when purchasing mānuka honey?
are the top purchasing
Origin 59% 34% 6% 1% Very important
drivers for consumers. Brand Important
Price
is important, but not the 57% 37% 6% 1% Not important
primary consideration
Not important
Sustainability 57% 37% 6% 1% at all
Certainty about a product’s origin was the UMF (or MGO) level 52% 41% 6% 2%
single strongest purchase driver among Brand 50% 34% 13% 2%
surveyed consumers. 84 percent of
Traceability 48% 41% 10% 1%
respondents rated brand as important or
very important, but it seems to be a later
consideration after price, sustainability, and
the UMF or MGO level of the honey.
Mostly the UMF level
and that it is certified The price and sustainability
and from New Zealand.” are the main factors for me.”
The UMF rating is very
important… ideally I seek
UMF+16 from New Zealand,
which is very good for you.”
Source: NZTE online survey, May 2018.
29SECTION 6 UNDERSTANDING MĀNUKA HONEY CONSUMERS
Consumption drivers – health, taste, texture
Health properties are the What are the main reasons for you to consume mānuka honey?
top driver of mānuka honey
consumption amongst US
74%
1st Health properties 76%
consumers 70%
2nd Taste
Taste also matters, with 70 percent citing it as Aged
3rd Texture 52% 30-39
a main reason for consumption. Texture is less
important to consumers overall – but men are
more likely to pay attention to it than women.
Consumers aged between 30 and 39 are
61%
much more likely to pay attention to both
taste and texture than other age groups.
of males
70%
35%
of females
Aged
30-39
Source: NZTE online survey, May 2018.
30SECTION 6 UNDERSTANDING MĀNUKA HONEY CONSUMERS
A closer look at health
84 percent of US consumers Mānuka honey has more
health properties than 42% 36% 20% 1% Strongly agree
who know of mānuka honey other types of honey Agree
value its health properties – I value mānuka honey’s 53% 31% 15%
Neither agree
or disagree
health properties
and 88 percent believe that Disagree
Strongly disagree
it has more health properties 1%
than other types of honey
Those who most strongly value mānuka
honey for health tend to be male (62 percent) I read about the health benefits of mānuka
honey in an article and did research on it.
and aged in their thirties (73 percent).
I found a few places that sold it – however,
Even people who haven’t bought mānuka it was very confusing to tell what was real
and what was junk honey.”
honey are likely to see it as healthy – I mostly take it for the health
65 percent of non-purchasers surveyed by benefits and I’ve replaced
regular honey with it”
NZTE agreed or strongly agreed that they
valued its health properties.
I’d be interested to learn more about the scientific
backings of health benefits. Plenty of ‘health foods’
use bogus claims with no supportive evidence, and
I’d like to see more products and health foods take
a science-positive standing and provide consumers
with proven facts.”
Source: NZTE online survey, May 2018.
31SECTION 6 UNDERSTANDING MĀNUKA HONEY CONSUMERS
When asked what health What do you see as health benefit(s) of mānuka honey?
benefits they valued in
Overall health & immune system 86%
mānuka honey, 86 percent of
Sore throat 56%
consumers mentioned overall
health or immune support. Skincare 50%
Many also mentioned sore Heart 41%
throat treatment or skincare Hair 40%
Bone & joint health 36%
Other 2%
I have recommended it
I can really tell the difference
many times for wound care,
between mānuka and
sore throats, and just about
everyday bottled honey”
anything else”
I bought it for my
grandfather to help
I have chronic pain and use
with his health”
mānuka honey for its anti-
inflammatory properties”
Source: NZTE online survey, May 2018.
32SECTION 6 UNDERSTANDING MĀNUKA HONEY CONSUMERS
Health product or breakfast spread?
Many US consumers see Where possible, positioning alongside health products and supplements is
likely to be a better option for high-value mānuka honey products
mānuka honey as a health
product, but retailers are less Store Aisle/Section
sure about where it sits Amazon Food & Grocery // Beauty & health
Visits to US stores show that mānuka honey is
Citymarket Grocery // Natural & Organic
often shelved in the breakfast aisle of grocery
Costco Grocery & Household > Pantry & Dry Goods > Spreads
stores and supermarkets, next to other honeys,
spreads and jams. Kroger Grocery // Natural & Organic
Specialist retailers position mānuka honey Sprouts Grocery Aisles (5 products) // Vitamins & Body Care (3 products)
differently. ‘Farmers’ market’ grocer Sprouts The Vitamin Shoppe Superfoods and grocery
sells mānuka honey in its vitamin and body Trader Joe's Grocery
care section, as does Walgreens (which
Walgreens Vitamins and supplements (immune support supplements)
treats it as an immune support supplement).
Walmart Food
The Vitamin Shoppe stocks it in its grocery
section alongside other ‘superfoods’, reflecting Wholefoods Food > Spreads
the overall store brand as a vitamin and
supplement retailer.
Online platforms have more flexible categories
to suit different consumer perspectives and
needs – for instance, Amazon sells mānuka
honey under both ‘Grocery’ and ‘Beauty and
Health’ departments.
Source: NZTE online research and store visit, May 2018.
33SECTION 6 UNDERSTANDING MĀNUKA HONEY CONSUMERS
How mānuka honey is consumed
Most US mānuka honey How do you like to consume mānuka honey?
consumers add it to their
Added to other foods 60%
food or drinks, or use it as a
Added to beverages 59%
breakfast spread
Consumers in their thirties are especially likely On toast 55%
to add mānuka honey to food or beverages. Directly from the jar 52%
About half of surveyed consumers like to Other, please specify 1%
eat their mānuka honey straight from the jar,
especially men (57 percent).
76 percent of purchasers
consume mānuka honey How often do you consume mānuka honey?
more than once a week,
Daily 43%
and 43 percent eat it daily
More than once a week 33%
Dieters, regular exercisers, and people who
take supplements are more likely to eat Once a week 11%
mānuka honey every day – which suggests More than once a month 6%
that consumers see it in a similar light to
Approximately monthly 3%
vitamins or other dietary supplements.
Less often 2%
Sporadically/as required 2%
Source: NZTE online survey, May 2018.
34SECTION 6 UNDERSTANDING MĀNUKA HONEY CONSUMERS
Beyond the jar – mānuka honey in other products
As well as mānuka honey in What other product(s) containing mānuka honey as an ingredient have you ever tried?
jars or sachets, there’s interest
in naturally healthy foods, Haven’t tried 35%
supplements, cosmetics and Lozenges 31%
topical medicines which include
mānuka honey Beverages 30%
From surveyed US consumers who valued Shampoo 28%
mānuka honey’s health properties, 65 percent
Royal jelly 26%
said they had tried derivative products such as
lozenges, drinks, soaps, shampoos and beauty Beauty products 26%
treatments which contain mānuka honey.
Biscuits 25%
Soap 25%
Propolis 18%
Other, please specify 1%
35SECTION 6 UNDERSTANDING MĀNUKA HONEY CONSUMERS
Pet food and pet supplies
might be the next frontier
for mānuka honey in the
United States
A growing pet population in the US, and a trend
towards more ‘human’ pet foods, might make
the pet sector a growth area for New Zealand
mānuka honey in the future – especially if
mānuka honey becomes more common as a
health food for humans.
Currently, pet products containing mānuka
honey sold in the US fall into three main
categories: food, supplements, and skin and
hair care. Most are targeted at cats and dogs,
with some also intended for horses.
It’s often difficult to find out exactly how much
mānuka honey (or mānuka oil) has been used
in these pet products, or its quality level. This
may change over time if US consumers start to
apply similar standards to pet products as they
do for their own mānuka honey consumption.
36SECTION 7 Looking ahead – key takeaways
SECTION 7 LOOKING AHEAD – KEY TAKEAWAYS
1 3
Mānuka honey has strong potential in Pricing and label clarity are important
the United States areas to keep an eye on
The value of New Zealand honey exports to Existing US buyers of mānuka honey seem
the US is growing strongly, and the high price confident that they understand what they are
of New Zealand mānuka honey – and the price buying – but more might be drawn in if they
premium for many New Zealand brands – can be reassured that they’re getting good
suggests that exporters have a good position
quality and a fair deal on pricing, especially
to build on.
when buying online.
2
4
Choice of channel is important for Health is the top driver for purchase
New Zealand brands and consumption of mānuka honey
With mass merchandise a relatively small part
in the US
of the market, the major potential for mānuka
New Zealand exporters should make the most
sales appears to be online, or in specialised
of mānuka honey’s healthy reputation (within
retailers which can offer the right price
positioning for premium New Zealand mānuka regulatory limits) when positioning their
honey products. products in the US – but keep an eye on trust,
origin and proven benefits, to help ward off
future competitive threats from other honeys
and superfoods.
38SECTION 8 Sources and methodology
SECTION 8 SOURCES AND METHODOLOGY
Survey data Market scan
Online self-completed survey (CAWI – NZTE store visits, April and May 2018 (NZTE)
Computer Assisted Web Interview), Score visits across the San Francisco area,
conducted 11-22 May 2018. California.
The survey had 7,000 respondents and used Online scan by NZTE staff for Kroger,
a national representative sample of US adults The Vitamin Shoppe and Sprouts.
(18+) in terms of gender, region, and age.
Statistical and significant differences between
subpopulations have a 95% confidence interval.
Trade data
International Trade Center – intracen.org
19 questions on awareness, attitude towards Based on UN Comtrade data collected from
mānuka honey, consumption and healthy 2013 to 2017.
lifestyle. Questions specific to mānuka honey
were filtered on people aware of it (n=1046).
Store data
Nielsen, Honey Snapshot in the US, May 2018.
Data from April 2016-April 2017, and April
2017-April 2018.
Sales data from mass merchandisers including
food stores, drug stores, hypermarkets
and supermarkets, warehouse club stores,
convenience store chains (sampled), military
stores and DECA.
40New Zealand Trade and Enterprise (NZTE) is the Government agency the craft forward. Tūhono represents connections to people and an
charged with a single purpose: growing companies internationally, ability to build relationships.
bigger, better and faster, for the good of New Zealand.
We provide customised services and support to ambitious
We employ 600 people, have over 200 private sector partners and businesses looking to go global. We help them build their
draw on a global network of thousands more. We have people based capability, boost their global reach, connect to other businesses
in 50 offices, working across 24 time zones and 40 languages to and invest in their growth. We also connect international investors
support New Zealand businesses in over 100 countries. Our global with opportunities in New Zealand through a global network of
presence lets us deliver value to the businesses we support, through investment advisors.
our unique know-how (knowledge and experience) and know-who
(networks and connections). We call on our Government network and work closely with our NZ
Inc partners and the business community, to grow our national brand
Our know-how and know-who is expressed in our Māori name: and help businesses to open doors in global markets.
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Disclaimer: This document only contains general information and is not formal advice. The New Zealand Government and its associated agencies (‘the New Zealand Government’) do not endorse or
warrant the accuracy, reliability or fitness for any purpose of any information provided. It is recommended that you seek independent advice on any matter related to the use of the information. In no
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