NZ Manuka Honey Industry Overview

Article

A premium export at risk – fragmented strategy and regulation threaten NZ’s global Manuka position.

Few products capture New Zealand’s global reputation for natural excellence quite like Mānuka honey. Known for its unique antibacterial properties and premium positioning, Mānuka has commanded the highest honey prices in the world. Yet, despite its scientific credibility and brand prestige, the industry is facing structural, regulatory, and strategic challenges that threaten its long-term potential.

This article explores the current state of the industry, its key issues, and the strategic options available to ensure New Zealand protects one of its most prized exports.

The Current Landscape

Export Value: NZ$387 million in 2024 (down from NZ$446m peak in 2020)
Export Volume: 9,270 tonnes in 2024
Businesses Involved: ~1,600 beekeeping, processing, and exporting enterprises
Registered Beehives: 534,000 in 2024 (vs 918,000 peak in 2019)

While still significant, the decline in both export value and hive numbers signals that the industry is losing momentum at a time when international competition and regulatory constraints are intensifying.

Total export value has dropped 13% since 2020, while average price per kg has fallen from $47 to $42. The industry faces mounting pressure to protect value and restore growth.

Key Challenges Facing the Industry

1. Fragmentation

The Mānuka honey sector is highly fragmented, with over 1,600 businesses operating across the value chain. Multiple grading systems (UMF™, MGO, DHA, NPA) create consumer confusion, while voluntary bodies such as UMFHA and Apiculture NZ lack enforcement power. Attempts to unify under a single body have failed, leaving no consolidated voice or strategy.

2. Regulatory Constraints

Mānuka honey is classified as a “standard food” both in New Zealand and key export markets (EU, US, China). This prevents producers from making stronger health or therapeutic claims - even though peer-reviewed science backs Mānuka’s antibacterial, antimicrobial, and wound-healing properties. Reclassification into a nutraceutical or therapeutic product category is complex, costly, and politically sensitive.

3. Oversupply and Price Collapse

High inventories and oversupply of low-grade Mānuka honey have led to price instability. Bulk exports, while providing short-term cashflow, weaken traceability and commoditise the product - undermining its premium positioning.

4. Lack of Geographical Indication (GI) Protection

Without GI protection, overseas producers - particularly in Australia - are able to market honey as “Mānuka.” This dilutes the brand value New Zealand has built, creating long-term risks for authenticity and pricing power.

Beehive numbers have fallen 42% since 2019, yet bulk Manuka honey export prices continue to decline - dropping from $40/kg to just $26/kg. Oversupply and weakening demand are squeezing the industry from both ends.

Lessons from Other Industries

New Zealand has faced similar crossroads before. Other agricultural industries provide clear examples of how coordinated industry structure, compulsory levies, and global brand protection can transform export performance:

NZ Winegrowers: By establishing a levy-funded national body, the wine industry grew exports from NZ$246m in 2002 to over NZ$2bn in 2024. Unified standards and sustainability systems built credibility in global markets.
Zespri (Kiwifruit): Through supply quotas, a single export desk, and collaborative marketing, Zespri created a world-leading fruit brand. Its coordinated model avoids destructive competition and boom-bust cycles.
Champagne & Parmigiano: European industries with strong GI protection demonstrate how origin-based branding and strict quality standards protect pricing power and consumer trust.

Strategic Questions for Consideration

If New Zealand wishes to safeguard Mānuka honey’s future, several key policy and industry questions must be addressed:

Industry Structure

Should NZ establish a compulsory levy-funded industry body to coordinate R&D, marketing, standards, and supply?

Export & Supply Management

Should bulk exports be restricted or capped to protect traceability and stabilise prices?
Could mandatory stock and production reporting improve discipline and reduce volatility?

Quality & Standards

Should NZ implement a single, mandatory grading system to simplify messaging and strengthen brand credibility?
Should NZ implement a single, mandatory grading system?

Regulatory Reforms & Brand Protection

Should regulations allow stronger health/nutraceutical claims backed by peer-reviewed science?
How can policy support profitability in downturns while protecting brand integrity?

A levy of 0.5–3.5% (the typical range for NZ agriculture products with Commodity levies) on 2024 export value ($387m) could raise $2m–$14m and unlock significant industry benefits.

What’s at Stake

Mānuka honey is not just another agricultural product. It embodies New Zealand’s clean-green image, scientific innovation, and premium food credentials. But without coordinated action, the sector risks following a familiar pattern of overexpansion, price collapse, and fragmented marketing.

The opportunity exists to reposition Mānuka honey as a globally protected, scientifically validated nutraceutical, supported by a unified industry structure - ensuring sustainable value for producers, exporters, and the NZ brand as a whole.

Conclusion

The story of Mānuka honey is one of extraordinary success, but also one of fragile foundations. To preserve its global standing, New Zealand must decide whether to continue with a fragmented, short-term approach, or adopt proven models of coordination, protection, and brand discipline.

If we get this right, Mānuka honey can continue to deliver world-leading export value and protect one of New Zealand’s most iconic products for generations to come.

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