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Agri-Food Trade Service
The U.S. Honey Market:
Opportunities for Canadian Honey Exporters
April 2009
The Government of Canada has prepared this report based on primary and secondary sources of information. Readers should take note that the Government of Canada does not guarantee the accuracy of any of the information contained in this report, nor does it necessarily endorse the organizations listed herein. Readers should independently verify the accuracy and reliability of the information. This report is intended as a concise overview of the market for those interested in its potential and is not intended to provide in-depth analysis which may be required by the individual exporter. Although every effort has been made to ensure that the information is correct, Agriculture and Agri-Food Canada assumes no responsibility for its accuracy, reliability, or for any decisions arising from the information contained herein.
Please address any comments or suggestions you have on this report to:
Ben Berry – ben.berry@agr.gc.ca
Table of Contents
Canada's Honey Exports to the U.S.
Opportunities for Canadian Honey Exporters
Executive Summary
The U.S. honey market currently presents a number of national and regional opportunities for honey exporters based on declining domestic supply capacity, shifts in competitor behaviour, shifting consumption and price pressures. Imports currently account for 60-70% of honey consumed in the U.S. and production is in a five year period of decline. In addition to domestic supply issues, a decrease in Chinese honey exports to the U.S. and a shift in Brazilian exports away from the U.S. has also opened a gateway of opportunity for Canadian honey.
The U.S. accounts for almost 80% of Canada's total natural honey exports.
Canada's natural honey exports to the U.S. were valued at $54.9 million in 2008, an increase of 69.4% from 2007.
Canada's top markets for honey in the U.S. in 2008 were Michigan, Pennsylvania, Wisconsin, Oregon, and Texas.
Due to recent consumer concerns of additives to honey, blends and questionable imports, organic honey has become increasingly sought after.
Honey is an increasingly popular product amongst America's growing ethnic consumer base.
Honey is considered a staple by U.S. consumers; however, increasingly the product is being accepted as a health and wellness product, allergy friendly alternative, home remedy product and a sugar substitute.
Growth in the market appears to be in the premium and innovative product segment.
The product has been introduced into a variety of food products as well as cosmetics and cleaners, all of which have increased pressures on supply.
Market share based on brand in the U.S. market, is dominated by two companies: Dutch Gold Honey and Sioux Honey Association.
There are more than 300 varieties of honey for sale in the U.S. market providing a number of options for niche penetration.
Infused honey products (honey infused with herbs, spices, etc.) may be an avenue for further exploration with regards to honey products that particularly target the health market or the growing ethnic population.
Clovers are the most popular honey plant in the U.S. overall, however, Alfalfa is the most important source plant in many of the western states.
Overview
This report explores the United States (U.S.) market for Canadian honey. Research will examine the current state of the U.S. honey market as well as the position of key competitors. In addition, the report will evaluate trends in consumption and analyze both macroeconomic and environmental pressures currently impacting the U.S. honey market.
The U.S. honey market currently presents a number of national and regional opportunities for honey exporters based on declining domestic supply, consumption pressures on popular varieties, price pressures and evolving consumer preferences, particularly the increasing demand for organic products.
Honey Varieties
With over 300 unique kinds of honey present in the U.S. market, the U.S. represents an established market with informed consumers and many niche opportunities. Honey is available in a wide range of colours and flavours all stemming from the type of nectar source/blossoms visited by the honeybees. The U.S. Department of Agriculture (USDA) classifies honey into seven categories based on honey colour: water white, extra white, white, extra light amber, light amber, amber, and dark amber. Typically, lighter coloured honeys tend to be lighter in flavour, while darker coloured honey is stronger. Honey also takes a variety of forms, which are categorized into comb honey, cut comb honey (liquid honey with pieces of honey comb), liquid honey, naturally crystallized honey, and whipped/creamed honey.
The most popular form of honey in the U.S. is liquid honey, with the majority of honey produced in the U.S. market sold in liquid form. However, whipped/creamed honey (a product which can be spread like butter) is often preferred to liquid honey in many countries outside the U.S. and is growing in popularity in the American market. Other specialty honey products include: dried honey, flavoured/fruit honey, honey stix, and infused honey (infused with herbs, spices, etc.). Specially certified honey is also present in the U.S. market in the form of Kosher honey and organic honey (honey that is produced, processed and packaged according to Jewish dietary regulations or USDA regulations for organic products, respectively) (National Honey Board).
According to the National Honey Board, common varieties of honey in the U.S. are: Alfalfa, Avocado, Basswood, Blueberry, Buckwheat, Clover, Eucalyptus, Fireweed, Orange Blossom, Sage, Sourwood, Tulip Poplar, and Tulepo. Clovers are the most popular honey plant in the U.S., but Alfalfa is the most important source plant in many of the western states.
U.S. Honey Market
A number of key issues have affected the U.S. honey market over the last five years. These issues have had a profound effect on export opportunities. Overall, the U.S. honey industry is dealing with declining bee colonies, increasing production costs, and rising prices. These factors have combined to create a number of issues which have directly impacted the shopping habits of the U.S. honey producer.
There are approximately 210,000 beekeepers in the U.S., and a total of 2.5 million bee colonies being managed. There are roughly 1,500 commercial honey producers, but the majority of beekeepers producing honey are producing on a small scale for local sale and farmers markets.
A wide variety of honey is present in the U.S. market, with large supermarkets providing dozens of brands, types, and flavours. Market share based on brand in the U.S. market, is dominated by two companies: Dutch Gold Honey and Sioux Honey Association. In 2006, the Dutch Gold Honey brand held a market share value of 25.3%, while Sioux Honey held 24.1% with its Sue Bee brand. The only other players with significant market share were Golden Heritage Foods LLC and T W Burleson with market share of less than 10% each (Datamonitor).
Perhaps the most serious issue affecting the U.S.'s ability to supply domestic demand has been the decline in domestic colonies. Primarily, declining bee colonies have come as a result of Colony Collapse Disorder (CCD), which has been occurring now for several years in the U.S., and has resulted in bees decreasing 60 to 80% in some hives. In more severe cases entire colonies have disappeared as a result of CCD. As an additional pressure on colonies, both wildfires and drought in 2007 further depleted the U.S. domestic supply of honey and greatly raised production costs. To counteract this decreasing production supply, honey producers in the U.S. have resorted to importing new colonies, but rising energy prices have made this increasingly costly. These difficulties have resulted in increased prices and a lack in the variety of brands available in stores.
Macroeconomic factors such as a weakening economy and U.S. dollar have also fuelled rising commodity prices, and an international supply shortage of honey has not helped to lower the impact of rising honey prices. Some experts are also placing the blame for the decline in production on global warming or less controversially on the more recent unpredictable/volatile weather. Regardless of reasons, a honey supply shortage has not been restricted to the U.S., as Europe deals with similar shortages.
The U.S. currently consumes more than double the amount of honey that it produces. Imports currently supply 60-70% of honey consumed in the U.S. market. Not surprisingly, honey prices in the U.S. reached a record high in 2008 at USD141 cents per pound; an increase of 30.9% from 2007's USD107.7 cents per pound. White honey prices have seen the most significant increase; however, the increase in price for white honey has led to a large increase in demand for light amber honey (a traditionally cheaper substitute for white honey) which has lead to rising prices for this product.
With CCD expected to continue in the near future, decreasing supply and increasing honey prices are also expected to continue. Despite predictions, production of honey in the U.S. actually increased in 2008 to approximately 160-170 million pounds compared to 130-155 million pounds in 2007. However, production in 2008 was still well below historical standards and 2008 has not been viewed as a "bounce back year" by industry. Despite increases, 2008 marked the fifth consecutive year of significant honey production shortfalls in the U.S. market (Phipps, 2008).
| Colour Class | Retail Price 2007* US$ | Retail Price 2008* US$ | % Increase 2007-2008 |
|---|---|---|---|
| Water White, Extra White, White | 172.8 | 192.4 | 11.3% |
| Extra Light Amber | 188.0 | 205.4 | 9.3% |
| Light Amber, Dark Amber | 218.3 | 235.7 | 8.0% |
| All Other Honey, Area Specialties | 291.1 | 302.9 | 4.1% |
| All Honey | 204.6 | 219.7 | 7.4% |
*cents per pound
NASS Fact Finders for Agriculture United States Department of Agriculture (USDA), February 2009
Within the "food" market, honey can fit into several categories; however, it is most often placed in the "spreads" food category, which also includes items such as jams and preserves, chocolate, and nut- and yeast-based spreads. Honey currently accounts for 18.5% of the total spreads market share in the U.S., and is the third largest product within the spreads category.
Honey is commonly viewed as a traditional, natural or staple product, but the category is in the midst of a significant shift with new product introductions, new consumers, and new applications which are pushing many products in the category into the realm of innovative premium products.
The spreads category as a whole has witnessed growth and innovation in products geared towards natural and organic nut butters, jams, and jellies. These shifts are also true for honey, but honey has an additional benefit of meeting the needs of the growing consumer segment concerned with product contamination, specifically in relation to allergies. This increasing prevalence of premium products, combined with supply problems in the industry, fuelled a unit price increase of 3% for spread products in 2008. This increase in unit price seems to have had a negative impact on sales. Within the U.S. spreads category in 2008, honey saw the largest decreasing value sales of 1.1% and volume sales of 4.4%. Sales of honey in the U.S. market were valued at US$274.3 million in 2007 and US$271.3 million in 2008, while volume sales were 22,690 tons in 2007 and 21,700 tons in 2008. As a result of supply problems, honey sales are expected to remain constrained, with decreasing volume and value growth of 14.3% and 6.9% respectively from 2008 to 2013. Volume sales of spreads are predicted to increase by 1.2% from 2008 to 2013, with value growth of 5.5%. Jams and preserves in the spread category are expected to have more robust growth, with consumers increasingly drawn to premium and organic products and brands (Euromonitor International). Despite a forecast decline in volume sales and value sales, Datamonitor is predicting that per head expenditure on honey will increase 1.8% by 2011, from $1.60 in nominal prices in 2006.
With a category composed of mostly staple products, consumers are expected to continue buying spreads despite the economic situation. However, they may become more price sensitive and increasingly trade down from premium products. Supporting this forecast is the general move away from white honey to amber honey simply based on price. This consumer behaviour is counter to the consumer trend toward healthier, natural, and organic products which are generally more expensive. While some in the industry have predicted no serious decline in consumer interest in these premium food products, it will be interesting to see which consumer trend continues to prevail in a weakened economy.
| Type | Quantity (kg) | Value (US$) | % of Total Imports (Quantity) |
|---|---|---|---|
| White Honey* From Canada | 977,719 404,245 | $2,608,787 $1,142,288 | 21.9% |
| Extra Light Amber Honey* | 842,285 | $1,517,691 | 18.9% |
| Light Amber Honey*From Canada | 1,821,610 36,299 | $3,900,895 $131,429 | 40.9% |
| Not Specified/ IndicatedFrom Canada | 242,370 6,688 |
$645,458 $12,793 |
5.4% |
| Comb and Retail HoneyFrom Canada | 556,444 80,385 | $1,423,646 $395,820 | 12.5% |
| Flavoured Honey | 14,087 | $109,741 | 0.3% |
| TOTAL | 4,454,515 | $10,206,218 | 100.0% |
*Not packaged for retail sale
U.S. Department of Agriculture (USDA), March 2009
Consumer Market
In order to better understand the consumer market for honey and how consumers think about and use the product, the National Honey Board often undertakes research and studies. The board surveys general consumers every four years, with the last survey undertaken in 2006 obtaining information regarding consumer use, perception, and average profile. With regards to household prevalence, it was found that 82% of households were currently using honey and had the product in their home. The average consumer profile is that of a Caucasian female, 48-years-of-age with some college education and a household income of $59,600. Use of honey has also increased within the African-American population, with honey used 5.4 times per month in 2002 versus 5.6 in 2006.
As honey has matured and is seen as a staple in many U.S. households, there has also been interest in expanding honey sales to further reach various ethnic populations in the U.S. By 2020, the U.S. is expected to have a visible minority population of 123.1 million (approximately 1/3 of Americans), with the majority of this increase driven by the Hispanic population. By 2030, it is predicted that the Hispanic population alone will represent one out of every five Americans. The National Honey Board has also conducted focus groups in this area, in order to better understand this growing market and expand honey sales to the consumer population (2007). Findings from focus groups include that the vast majority of mothers use honey in tea as a sweetener or as a remedy for cold/sore throats, and generally pay $3-5 for a small jar. Interestingly, essentially none of the respondents exerted any extra effort to get honey that was from another country.
Trends
Consumer awareness and concern for health and wellness has grown considerably in the past decade, and has become a key consumer trend in the North American marketplace. Consumer demand for natural and "healthy" products of all varieties has increased, and food has been a key area of focus for these products. As a result, the prevalence and variety of organic products available in the U.S. market has snowballed in recent years, with marketing and consumption of organic products increasing tremendously. According to AC Nielson, 25% of households consume organics on a weekly basis and 75% of American households buy organic products on at least an occasional basis. Supermarkets have also been adjusting to this demand, and are increasingly making more shelf space available for these products. In 2008, 89% of food retailers used a strategy that placed emphasis on natural/organic products to remain competitive, with a rate of effectiveness of 7.3 out of 10 (FMI, 2008). Manufacturers of spreads are also presenting new products to meet consumer demands for healthier food products. Large retailers, such as Safeway and Whole Foods have increased the presence of more highly priced organic spreads in stores, with their own private labels. The presence of private label spreads is expected to provide increased competition to branded spreads, as prices continue to rise.
Not surprisingly, varieties of organic honey have been entering the U.S. market with increasing regularity and new products continue to appear. For example, an Organic White Truffle Acacia Honey was recently launched by Da Rosario's, while a new Free Trade Certified organic multi-floral honey was launched by Wholesome Sweeteners. Premium organic products, such as these, have been able to garner price premiums which have benefited not only producers and packers, but also retailers. Trends occurring in the broader spreads category that are expected to continue in the near future include new and exotic flavours, as well as the trend for healthy, organic and premium products. While healthier spread products are still somewhat of a niche market, they are predicted to have a growing presence as health and wellness remains a concern in the minds of consumers, and becomes an increasingly relevant factor impacting the packaged food sector. These trends have been growing in the marketplace for a number of years and were already appearing significantly in messaging for the spreads market in 2006. Of new product launches in the spreads category in 2006, the top three packaging tags and claims were for "upscale", "natural", and "gourmet" products, comprising a combined 37% of total claims.
The food sector as a whole has seen an increase in organic offerings for a number of reasons (sustainability, environmental issues, production practices), but food safety may be one of the most significant factors, and it is certainly the biggest factor in the recent increase in demand for organic honey products.
Honey from China has been flooding the U.S. market in recent years. China is one of the few markets not experiencing a substantial shortage, and Chinese products have proven very capable of meeting the demands of a number of key markets. Unfortunately, many producers and industry people, in the U.S. and Europe, believe that the influx of honey from China has upset market prices and negatively effected honey quality. Due to the volume and price of honey imports from China it is estimated that U.S. honey prices have actually been 25-50% below actual price, in spite of shortages. Price is simply one of the issues negatively affecting the image of honey from China.
One key issue with recent Chinese honey imports is that the honey is arriving via third countries, and circumventing duties at customs with category misrepresentation. Many believe this one issue has genuinely hurt the U.S. industry which has been struggling to deal with declining bee colonies, increasing costs, and recessionary pressures. The issue is viewed as so serious that the U.S. has instituted a number of surveillance and countermeasures aimed at ending customs fraud and duty circumvention. In addition, a substantial anti-dumping duty of $2.63/kg was imposed on honey from China in January of 2009. To-date these measures have made progress and the amount of honey beginning imported from China has decreased. The limitations on Chinese honey in the U.S. marketplace are expected to have a significant impact, further raising honey prices and increasing export opportunities.
Another issue affecting the U.S. honey market, which relates directly to honey from China, is blending. Consumer groups and producers have called into question the blending of U.S. honey with inferior honey from China, and misrepresenting the product at the retail level. Consumers have viewed this as a health and safety issue as well as a trust issue and all of this has combined to put a very negative light on imported honey from China.
Consumer trends in health and wellness are not only affecting honey as a commodity product on its own, but also as an ingredient in other products. Products that comprise natural sugars, such as organic honey, are already increasingly perceived in the marketplace as healthier and better nutritionally, while refined sugars and sugars that are perceived to be "unnatural" continue to lose favour. With consumers increasingly looking for "natural sweeteners", honey appears to be experiencing an upsurge as an ingredient in a range of products, such as drinks, baby products, energy chews, yoghurt, etc. Consumer demand for natural energy sources is also fuelling the increase in honey as an ingredient. Honey, which contains trace amounts of antioxidants, as well as vitamins, minerals and amino acids, provides an appealing array of benefits over other sweeteners, which should grow to become an increasingly important selling point as consumer health trends further develop (National Honey Board).
Awareness of honey and its relation to health is only expected to further increase as research on the topic continues. There has been a recent focus and push toward a "honey and health" message for the industry and international marketplace, and linking honey with a positive health message for consumers. The first International Scientific Symposium on Honey and Health was held in 2008 and was attended by scientists throughout the world. Research on the positive health benefits of honey, particularly with restorative health and cognitive functions, was presented and is being touted as a powerful marketing tool for the honey industry and consumer honey products. The potential of this marketing message for the industry is being seen as similar to what occurred in the tea industry with growing consumer perceptions of the health benefits of tea: in approximately a decade, the tea industry grew from $1 billion to $7 billion. Further highlighting the prominence of this movement in the honey industry, a Committee for the Promotion of Honey and Health has also been formed, with the goal of utilizing "good science" as a marketing tool for linking health and honey. The symposium received a considerable amount of coverage from the press and is considered to have reached the marketplace on an international level (Phipps, 2008).
Infused honey products (honey infused with herbs, spices, etc.) may be an avenue for further exploration with regards to honey products that particularly target this market or the growing ethnic population.
Price increases are often met with resistance from both manufacturers and retailers. However, natural products that provide value-added health benefits and messages have been able to overcome this resistance and obtain premium prices as high-end, luxury products (Phipps, 2008). The honey and health message is expected to do this for honey, allowing for premium, healthy honey products to garner premium prices. The future for this strategy looks promising as it does not counteract or try to resist pressures in the industry toward higher prices, but fits cohesively with what's currently occurring.
Canada's Honey Exports to the U.S.
While honey sales in the U.S. have been slowing, Canadian honey exports to the country have been increasing. The U.S. is, by far, the main destination for Canadian honey exports, accounting for 78.6% of Canada's total natural honey exports to the world in 2008. Canada also continues to be a key honey source for the U.S., and was the U.S.' second largest import source for Comb and retail honey in January 2009.
Canada's natural honey exports to the U.S. were valued at $54.9 million in 2008, an increase of 69.4% from 2007. These exports have increased steadily over the past few years, growing 120.5% from 2005 to 2008. Export volumes have also increased, but not quite so substantially, growing 68.8% for the same time period. The average import price of Canadian honey (not bottled for retail sale) into the U.S. in 2008 ranged from US$0.81 to US$1.13 per pound. These prices were noticeably higher and varied more greatly than the average import prices of 2005 to 2007.
Of total Canadian exports, Saskatchewan was the largest natural honey exporter to the U.S. with exports valued at $19.6 million, followed by Manitoba with a value of $16.9 million and Québec at $8.8 million. Combined, the three provinces comprised 82.4% of Canada's total honey exports to the U.S. in 2008. Other honey exporting Canadian provinces in ascending order of export value were Alberta, Ontario and British Columbia.
All of Canada's exporting honey provinces have experienced export growth to the U.S. in the past four years. Saskatchewan's exports have grown by more than 700% since 2005. British Columbia and Québec experienced growth of 127.7% and 110.8% respectively, while Manitoba honey exports grew 54.8%, Ontario 28.2% and Alberta 25.3%. Volume growth also occurred for all of these provinces, except for Alberta. However, volume growth was considerably less than value growth, alluding to rising honey prices and perhaps even increasingly premium honey products.
Canadian honey was exported to all regions of the U.S. in 2008, with the Midwest the main destination; receiving 55.5% of total exports with a value of $30.5. The West followed, receiving exports of $10.6 million or 19.3% of total exports. The Northeast received $7.4 million or 13.6% of total Canadian honey exports, and the South received $6.4 million or 11.6%.
Canada's honey exports have also been increasing in every geographic region of the U.S. The Midwest was once again the leader, experiencing growth of 281.3% from 2005 to 2008. However, the West also had a noticeable growth of 78.9%, followed by the South with 34.7%, and the Northeast with 19.1%.
Within the regions, there tends to be one division which receives the large majority of Canadian honey exports to the U.S., and at least one state that is a major recipient of Canadian honey. Within the Midwest, the East North Central division (Wisconsin, Michigan, Illinois, Indiana, Ohio) accounts for approximately 2/3 of Canada's honey exports to the region. Unsurprising, Michigan receives the most Canadian honey exports of any U.S. state, accounting for 20.9% of Canada's total honey exports to the U.S. Canadian honey exports to Michigan have also grown strongly since 2005, increasing more than 10 times in value. The Midwest region also has the state that receives the third largest amount of Canadian honey exports, Wisconsin, with exports more than tripling in size since 2005.
The Pacific division (comprising Alaska, Washington, Oregon, California, and Hawaii) is by far the largest division for honey exports in the West, receiving virtually all of the region's Canadian honey exports. Oregon also receives the fourth largest value of Canadian honey exports, of all the states.
In the Northeast, the Mid-Atlantic division (New York, New Jersey, Pennsylvania) is the destination for virtually all of Canada's honey exports to the region. Pennsylvania also receives the second largest amount of Canadian honey exports of all the states, representing 8.8% of total Canadian honey exports to the U.S. In the South, the West South Central division (Oklahoma, Texas, Arkansas, Louisiana) also received more than half of Canada's honey exports to the region. Texas is the main destination for Canadian honey in the South, receiving the fifth largest value of Canadian honey exports to all U.S. states.
Competing Export Countries
Asia Pacific and Southeast Asia
Within Asia, China is a notable honey producer, and in past years, China's honey exports have flooded the U.S., skewing the market and resulting in lower honey prices. However, the U.S. has been increasing its surveillance and countermeasures toward the circumvention of Chinese honey and anti-dumping tariffs have had results in decreasing Chinese exports of honey into the U.S. In addition, China has also been affected by drought which is expected to decrease honey crops. China has fallen victim to some recent negative press with regards to antibiotics present in their products, illegal imports and product blending affecting labelling. All of which have painted products from China in a negative light. In fact, this is one of the key drivers behind the growth in the U.S. organic honey market.
Vietnam has entered the honey production industry, and is expected to experience good demand and increasing prices for its honey. India is also an emerging player in the international honey market (Phipps, 2008).
Europe
Honey crops in Eastern Europe were low in 2007, resulting in a lack of stock for both Eastern and Western Europe. However, this didn't decrease European demand for honey, which is currently estimated to surpass the world's ability to supply honey. Honey prices in Europe were significantly over US$1.00/lb in 2008 (Phipps, 2008). Issues with China's product quality have opened up significant opportunities in the European market and Brazil is currently leading the import market.
Latin America
South America possesses several key honey producers, such as Argentina, Brazil, Chile and Uruguay. However, the continent has also been experiencing supply shortages.
The beginning of 2008 did not bode well for Argentina's honey production due to a dry winter that continued in to the spring, resulting in a significantly lower honey crop than in previous years, with virtually no clover honey and significantly less white honey. The use of agricultural land for other higher priced commodities, such as grains and beans, has further decreased the country's supply of honey. Uruguay faced a similar situation in 2008 and currently faces a crop shortfall. Chile and southern Brazil's crops were also impacted by drought in 2008. CCD may be beginning to spread into South America, with some Argentine beekeepers reportedly experiencing problems with the disorder.
While Brazil experienced some drought in 2008, a crop of 42,000 metric tons was expected, and the industry continues to grow. The reopening of the European market to Brazilian honey producers has redirected the country's export focus from the U.S., which was Brazil's main market in 2007, back to Europe. This was expected to lead to an increase of 30% in Brazil's honey prices, including organic honey of which it is the leading global supplier. The vast majority of Brazilian honey production is light and extra light amber, and an increase in the production of mild white honey is also expected.
The weakening U.S. economy and dollar in 2008 resulted in the country becoming a less favourable market destination for South American honey exports. Honey exports that would have once been destined for the U.S. market, were instead re-directed to Europe and Japan, where higher prices could be obtained. In the U.S., South American honey exports have also had to compete with domestic U.S. honey which is a better value for U.S. packers, due to the combined high quality and low prices of U.S. honey (Phipps, 2008).
Opportunities for Canadian Honey Exporters
The U.S. consumer market is increasingly looking to honey as an alternative sweetener, and as a healthy/nutritional food additive. Honey is increasingly being used by consumers with food allergies in place of other traditional spreads. The U.S. honey market has a growing premium segment, but also benefits from the perception that it is a staple product. Food scares and consumer preferences have ignited the organic honey market.
The U.S. is a mature honey market, with a decreasing ability to supply itself with domestic products. A decrease in Chinese honey exports to the U.S as well as a shift in Brazil exports away from the U.S. towards Europe has opened a gateway of opportunity for Canadian honey in the American market. Despite the negative press surrounding imported honey, Canada benefits from its reputation of being home to a well-established honey industry know for its quality products.
An interesting and underdeveloped marketing opportunity for honey as a sweetener or cooking ingredient is honey's relatively low level of calories in relation to sugar. In a study by the National Honey Board in 2006, it was shown that consumers tended to think that honey possessed more calories than in reality. On average, respondents thought that the number of calories in honey was three times higher than in reality.
With its image of health and wellness, an allergy friendly alternative to peanut butter and the potential to market the product as a diet friendly ingredient, honey has enormous potential in the U.S. market. Fortunately, for Canadian products, key competitors are facing real challenges in the U.S. market or have recently redirected their export endeavours at other markets they have deemed more profitable.
Quality, Canadian Ingredients
The superior quality and taste of Canadian honey is internationally recognized, and can be a key driver for successfully entering, expanding, and promoting Canadian honey products in foreign markets. A useful differentiating factor can be to ensure that Canadian honey products carry the Canadian brand and promote the quality of agri-food products that international consumers associate with Canada. Branding Canada's branding guide, market research and templates can be accessed at http://www.marquecanadabrand.agr.gc.ca. These tools are particularly useful for small- to medium-sized producers with limited international marketing experience and budgets. Canada's unique environment, which allows for higher honey production abilities, also provides a strong supply base that further benefits the international marketing of Canadian honey products. Droughts in many of the major honey producing countries have also created international honey shortages, particularly for white and industrial honey grades, but also for darker grades of honey.
Organic Varieties, Native to Canada
With consumer demand for natural, healthy, and organic products increasing significantly in recent years, Canadian producers and exporters are in a good position to also benefit from this trend. The land in the U.S. is so developed that many in the industry argue that it's simply not possible to produce truly organic honey in the U.S. As a result, organically produced honey of U.S. origin is quite scarce, leaving a market opening for foreign organic honey. Brazil is a central supplier for organic honey, with Argentina another notable source. However, organic honey produced by these countries is a dark honey, and an opportunity exists for Canadian exporters that can provide organic white honey to the supply strained U.S. market. In the past year Brazil has also had new honey export opportunities with Europe, where they can obtain higher prices for their products; leading to less competition in the U.S. market (Phipps, 2008).
Vehicles/Venues for Foreign Market Entry
Canadian honey producers looking to enter foreign markets and/or expand their current exporting business should consult the Agri-Food Trade Service website for listings of trade shows and events taking place in their area and in foreign markets of interest at http://www.ats.agr.gc.ca.
The following upcoming industry events may be of particular interest to Canadian honey exporters interested in the U.S. market:
Americas Food & Beverage Show
November 9-10, 2009
Miami Beach Convention Centre
Miami, FL
Internet: www.americasfoodandbeverage.com
Natural Products Expo West
March 6-8, 2009
Anaheim Convention Center
Anaheim, CA
Internet: www.expowest.com
Natural Marketplace 2009
July 9-11, 2009
Sands Expo and Convention Center
Las Vegas, NV
Internet: www.naturalmarketplaceshow.com/nm09/public/enter.aspx
Healthy Foods International Exposition and Conference
June 17-18, 2009
Dallas Convention Center
Dallas, TX
Internet: www.healthyfoodsintl.com
Summer International Fancy Food & Confection Show
June 28-30, 2009
Jacob K. Javits Convention Center
New York, NY
More information...
All Candy Expo
May 19-21, 2009
McCormick Place
Chicago, IL
Internet: www.allcandyexpo.com
Natural Products Expo East
September 23-26, 2009
Boston Convention & Exhibition Center
Boston, MA
Internet: www.expoeast.com
Exporters should also contact the Canadian Embassy or Consulates in desired markets of entry for listings of local importers and distributors.
Access Issues
To facilitate the successful export of honey products, Canadian exporters are encouraged to develop market entry strategies that include working with local importers and distributors in target markets to develop a presence, gain valuable market advice, and best position products to meet local tastes, laws and pricing.
Agri-Food Trade Service
Provides trade event listings, exporter guides, reports on agriculture
and agri-food sectors by country, as well as commodity-specific (e.g.
wine market) reports www.ats.agr.gc.ca
International Trade Canada – Canadian Trade
Commissioner Service
Provides detailed information on customs procedures, documentation,
tariffs and labelling requirements by country, as well as market reports,
event listings and virtual access to trade commissioners abroad
www.infoexport.gc.ca
Exporting to the U.S.: A Guide for Canadian Businesses 2008 is also available at the Canadian Trade Commissioner Service http://www.tradecommissioner.gc.ca/eng/exporting_to_us_2008-eng.pdf
Key Resources
American Honey Producers Association. http://www.americanhoneyproducers.org/
Bee Culture: The Magazine of American Beekeeping. http://www.beeculture.com/
Beesource.com: Online Source for Beekeeping. http://www.beesource.com/
Canadian Agriculture Trade Statistics (CATS) - Stats Can/AAFC – 2008
Datamonitor. (2007, June). Spreads in the US to 2011.
Euromonitor International. (2008, August 26). Spreads-USA.
Food Marketing Institute (FMI). (2008, May 5). FMI's State of Food Retailing 2008: Industry Performs Well as Retailers Are Tested by Spikes in Energy, Commodities, Healthcare, Interchange Costs. Retrieved Mar. 25, 2009 from: http://www.fmi.org/news_releases/index.cfm?fuseaction=mediatext&id=936
Government of Saskatchewan. (2007, December). Honey Industry Profile. Retrieved April 8, 2009 from http://www.agriculture.gov.sk.ca/Honey_Industry_Profile
Morse, Dr. Grant D. (2009). How Much Can You Tell Without Looking Inside The Hive? Retrieved April 8, 2009 from http://www.draperbee.com/info/hot%20topics.htm
National Honey Board. www.honey.com
National Honey Board. Market Research. Retrieved April 14, 2009 from http://www.honey.com/foodindustry/processing/marketresearch.asp
Phipps, Ron. (2008, February 29). Honey Market Update. Retrieved April 8, 2009 from http://www.americanhoneyproducers.org/Articles/2-26-09HONEY-MARKET-UPDATE.pdf
Phipps, Ron. (2009, January). Honey Update: January 2009. Retrieved April 8, 2009 from http://www.skamberg.com/honey.htm
Phipps, Ronald P. (2008, January 26). World Honey Market Report: Canadian Honey Council Annual General Meeting. CPNA International, Ltd. Retrieved April 8, 2009 from http://www.americanhoneyproducers.org/CHC%20Market%20Report1-25-08.pdf
Schneider, Andrew. (2008, December 31). If It's American honey, it's likely not organic. Seattle Post-Intelligencer. Retrieved April 8, 2009 from http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/12/30/MNH4151KSU.DTL
Schneider, Andrew. (2008, December 31). U.S. honey producers don't have it easy, and some say industry board isn't helping. Seattle Post-Intelligencer. Retrieved April 8, 2009 from http://www.seattlepi.com/local/394199_honeybiz31.html
U.S. Department of Agriculture (USDA). www.usda.gov
U.S. Department of Agriculture (USDA). (2009, March 13). National Honey Report. Retrieved April 8, 2009 from http://www.honey.com/honeyindustry/statistics.asp
