Honey Prices Explained

Global honey prices are at the highest level in years due to the emerging demand for natural sweeteners. Additionally, various factors such as changes in weather conditions and the decline in bee populations due to factors such as disease, pesticides, and habitat loss impact honey production, leading to an increase in its prices. Furthermore, changes in consumer demand, global trade dynamics, and the rising demand from food and medical industries drive the fluctuating honey prices.

Why are honey prices fluctuating?

1. Seasonal Variations 

The production of honey is significantly influenced by seasonal variables like weather conditions, flowering patterns, and bee activity. Thus, any changes in these variables result in fluctuations in the supply and value of honey.

2. Global Supply and Demand

Variations in the worldwide supply and demand of honey lead to changes in its value. For instance, varying consumer tastes, health trends, export/import volumes, and market dynamics are some examples of factors that might affect the supply, demand, and prices of honey.

3. Weather Conditions

Droughts, floods, wildfires, and extreme temperatures are examples of weather events that greatly affect honey production. Additionally, unfavorable weather patterns limit bees’ access to nectar and pollen, resulting in a diminished honey output and possibly raising costs. For example, the successive drought in the Western U.S. dried up bee forage causing beekeepers to lose 50%-70% of their bee colonies.

4. Competition and Production Costs

Some factors influence price variations, including new competitors entering the market, marketing campaigns, pricing policies, and distribution routes.

For instance, the availability of maple and light corn syrups in the market actively determines the marketability of honey as its price depends on other alternatives. On the other hand, the cost of making honey rests on the price of inputs like labor, beekeeping supplies, transportation, and packaging.

5. Consumer Trends and Preferences

Customer preferences, dietary trends, and increasing awareness of the health benefits of honey influence its demand and prices. In turn, these shifts in consumer buying behavior translate to producers adjusting to shifting market trends.

Which variables impact the price of honey?

• Seasonal Variations
• Global Supply and Demand
• Weather Conditions
• Competition and Production Costs
• Consumer Trends and Preferences

Where does honey come from?

Honeybees as a group appear to have their center of origin in Southeast Asia. One of the earliest accounts of honey collections came from a cave in Spain approximately around 9,000 years ago. Neanderthals most likely gathered and consumed it for nutrients during the Stone Age.

Presently, Greece, New Zealand, Thailand, Turkey, and Spain are the top honey producers. Apart from its application as a natural sweetener, people use honey to treat coughs and burns due to its healing properties. Here is an overview of the process of how honey is made:

1. Foraging – Honey bees use their long, tube-shaped tongues to gather nectar from flowering plants. They visit flowers to collect nectar, a sweet liquid that the flowers release to draw pollinators such as bees.

2. Nectar Collection – Bees suck up the nectar and store it in a special honey stomach separate from their digestive stomach.

3. Return to Hive – When a bee’s stomach is full of honey, it goes back to the hive and regurgitates the nectar into the mouth of another bee. This process is called trophallaxis.

4. Processing in the Hive – The worker bees inside the hive process the nectar by adding enzymes to break down the complex sugars in the nectar into simpler sugars like glucose and fructose. Also, they reduce the water content of the nectar through evaporation by fanning their wings over the honeycomb.

5. Storage in Honeycomb – After digestion, it is kept in hexagon-shaped beeswax cells inside the hive, called honeycombs. Once the honey’s water level is down to about 17–20%, the bees seal the cells for long-term storage by sealing them with beeswax.

6. Ripening – Over time, the enzymes in the honey continue to work on the sugars, making the honey more stable and less likely to ferment.

7. Harvesting – Then, it is extracted from the honeycomb by beekeepers after removing the frames containing honey from the hive. This procedure varies depending on the tools and methods used in beekeeping.

8. Filtering and Bottling – Before being bottled and sold, the gathered honey is filtered to get rid of any debris or contaminants. Additionally, some honey is offered for sale unfiltered, raw, and full of all its natural ingredients.

What are the uses of honey?

Honey is utilized for various purposes due to its unique properties. Some common uses of honey include:

1. Sweetener – Honey serves as a natural sweetener. Additionally, it is a good replacement for sugar in many recipes, such as baked goods, beverages, and sauces.

2. Medicinal – It is used in traditional medicine as it has antibacterial and anti-inflammatory properties, making it useful for treating wounds, sore throats, and coughs. Moreover, some cultures apply it to soothe burns and skin irritations.

3. Nutritional Supplement – Honey contains various vitamins, minerals, and antioxidants, making it a nutritious addition to your diet. As a result, it is consumed raw or added to foods like yogurt, oatmeal, or smoothies to boost nutritional content.

4. Beauty and Skincare – It is a common ingredient in skincare products due to its moisturizing and antibacterial properties. For instance, honey-laced homemade face masks, scrubs, and hair treatments are used to nourish and hydrate the skin and hair.

5. Preservative – The natural acidity and low moisture content of honey makes it an effective preservative for foods like jams, jellies, and certain fruits.

6. Flavoring – Its distinct flavor enhances the taste of various dishes and beverages. Thus, it’s a good topping for toast, pancakes, and waffles, or added to teas and cocktails for sweetness and flavor.

7. Energy Source – The carbohydrates in honey provide a quick energy boost, making it a popular choice for athletes as a natural source of fuel before or during exercise.

8. Cultural and Religious Practices – Honey holds cultural and religious significance in many societies. For example, Indians use honey in their traditional dishes such as laddoos and halwas.

What is the future price of honey?

The market for honey continuously expands due to a growing preference for natural and healthy sugar substitutes over processed ones. This emerging demand comes from the rising fit awareness. Acclaimed for both its nutritional value and therapeutic qualities, honey is a popular choice among health-conscious people looking to improve their overall health.

At a compound annual growth rate (CAGR) of 5.8% from 2022 to 2030, the global honey industry is projected to reach USD 17.44 billion. Factors such as the growing customer preference for organic sweeteners over artificial sweeteners and sugar and its numerous uses in baked products, drinks, medications, skincare, and hair care will drive its marketability in the coming years. Thus, the estimated price of honey in 2028 will be $6.82 per kilogram.