India has 19.34 lakh bee colonies and they collectively produce about 1,33,200 metric tonnes of honey annually (2022). India is the 7th largest honey producer in the world. The domestic market along with exports is valued at roughly Rs 3,000 crore. Independent estimates suggest that Indian honey industry is slated to witness cumulative annual growth of 10 per cent between 2022 and 2027. Market for honey and honey-based products in India is still at a nascent stage and offers a huge potential for growth. (Source: India Honey Alliance, Nov 2022).
Honey Business in India
Market Share and Growth
Size of Indian honey market in 2023 was INR 25.2 billion (about $3 billion), expected to grow to INR 48.6 billion (about $5.7 billion) by 2032, growing at CAGR 7.3%. More than half of India’s honey production is exported to over 83 nations, USA being the largest importer. Other exporters are Saudi Arabia, Bangladesh, Canada, Qatar. India is one of the world’s top honey exporters and has exported 74,413 metric tonnes of honey in 2021–2022 for Rs 1,221.17 crore. India is the 9th largest exporter of natural honey, with about 3.85 per cent of global honey exports.
Honey is produced across India, but productivity varies from state to state. States like Rajasthan, Uttarakhand, Punjab, West Bengal, Bihar, Kerala, Karnataka, Uttar Pradesh, Tamil Nadu, and Uttaranchal have a high concentration of honey. Andhra Pradesh, Assam, Himachal Pradesh, Jammu and Kashmir, Maharashtra, Gujarat, Jharkhand, Madhya Pradesh, Meghalaya, Shillong, and Orissa are medium-range producers while Manipur, Mizoram, Tripura, Sikkim, Goa, Arunachal Pradesh, and Andaman Nicobar are low volume producers of honey in India.
More than half of India’s honey production is exported to oover 83 nations, USA being the largest importer. Other exporters are Saudi Arabia, Bangladesh, Canada, Qatar. India is one of the world’s top honey exporters and has exported 74,413 metric tonnes of honey in 2021–2022 for Rs 1,221.17 crore. India is the 9th largest exporter of natural honey, with about 3.85 per cent of global honey exports.
In 2022, organic honey made up about 9% to 15% of the global honey market, with this segment showing impressive growth. The organic honey market is expected to grow at a steady pace, with a projected CAGR of 7.8% from 2022 to 2032. This growth is largely fueled by the rising demand for natural sweeteners and a shift in consumer behavior towards health-conscious choices. In India, the honey market is also on the rise, anticipated to grow from USD 449.8 million in 2024 to USD 626.8 million by 2033, at a CAGR of 5.3%.
What’s Driving the Demand for Organic Honey?
- Health Consciousness: More and more consumers are recognizing the health benefits of organic honey, such as its antioxidant and antibacterial properties. This awareness is pushing people, especially those managing lifestyle-related issues like diabetes and obesity, to opt for organic honey over processed sugars.
- Natural Sweeteners Trend: The demand for natural sweeteners is booming, and organic honey is riding this wave. Young consumers, in particular, are leaning towards organic options as opposed to artificial sweeteners, which are often viewed with skepticism. This trend is driving the growth of organic honey as a favored ingredient in food and beverages.
- Food and Beverage Industry Utilization: The food and beverage industry is a major player in the organic honey market, accounting for over 60% of its global use. With a growing emphasis on organic and natural ingredients, this sector is helping to propel the demand for organic honey in India.
- E-commerce and Consumer Access: The rise of e-commerce has made organic honey more accessible than ever. Consumers can now easily purchase a wide variety of honey products online, and effective digital marketing strategies have further boosted market growth and awareness.
- Government Support: The Indian government is increasingly focusing on strengthening the beekeeping sector, which includes promoting organic honey production. These initiatives are designed to ensure quality and sustainability in honey production, bolstering the role of organic honey in the market.
How Does the Demand for Organic Honey in India Compare to Other Countries?
Honey business in India depends on demand for organic honey, which is on the rise, but it still lags behind several other countries, particularly in Europe and East Asia.
- Global Market Overview: The global organic honey market is currently valued at around USD 990.9 million and is projected to reach USD 1.8 billion by 2032, growing at a CAGR of 7.8%. Organic honey accounts for about 9% to 15% of the total honey market globally, with significant contributions from the food and beverage sector, which utilizes over 60% of organic honey.
- Regional Leaders: Countries like China dominate the East Asian market, holding more than 80% of the organic honey market share. The high cultural relevance of honey and its medicinal uses contribute to this demand. In Europe, Italy and Spain are leading the growth of organic honey, with projected CAGRs of 10.4% and 8.5%, respectively.
- India’s Position: Honey business in India is valued at USD 449.8 million and is expected to grow to USD 626.8 million by 2033, with a CAGR of 5.3%. While the demand for organic honey is increasing, it is not yet at the level seen in countries like Italy, Spain, or China, where consumer awareness and preference for organic products are significantly higher.
- Driving Factors: The rising health consciousness in India is a key driver for organic honey demand, similar to trends observed in other countries. However, the overall market growth is still influenced by challenges such as quality control, production standards, and competition from cheaper imports, particularly from China.
- Consumer Preferences: In India, there is a growing trend towards natural sweeteners, with consumers increasingly seeking healthier alternatives to processed sugars. This trend aligns with global movements but is still developing in terms of market penetration and consumer education compared to more established markets.
Final Thoughts
Organic honey is becoming an essential part of the Indian honey market, thanks to growing health trends, a preference for natural products, and strong industry dynamics. However, while India shows promising growth in the organic honey sector, it currently does not match the demand levels seen in leading countries. The potential for growth exists, driven by health trends and increasing consumer awareness, but it will require overcoming challenges related to quality and market competition.
