How to Start a Honey Business in 2020
The honey market is expected to grow and those who are interested in starting a business in this sector will need to plan and prepare well before they start. This includes three factors in particular; shelter for bees, harvesting from the beehive, and shelter maintenance. Thorough knowledge of how beekeeping works is imperative and it is important to understand the target market before setting up a business. The investment at the start of the business is going to include land for the bees, the equipment required, and of course the bee colony. It is crucial to get a healthy bee colony that can be bought or can be caught.
Beehives that have been maintained well can last for a long time; up to 30 years. This can help decrease expenses. The target market can be of two types; those who buy the honey directly or those who buy beeswax products. Additionally, the geographic location will play a part in the success of the business. Experts recommend starting with some beehives and when clear understanding has been achieved, to then scale up as planned. A comprehensive understanding of the global honey market today will provide you with the information you need to go forward and grow your business into a profitable venture.
What The Honey Market Analysis Suggests
The global market of honey will increase to 2.4 million tons in the future and this signals the growth in the honey market. The Asia Pacific region has been one of the largest contributors to this growth and it will continue to be one of the honey market trends. Procurement intelligence experts, Beroe, suggest that the Asia-Pacific region will witness honey market growth at a CAGR of 5.2%. At present, the Asia Pacific region has the highest market share of over 41%. In terms of production, the Asia-Pacific region is the biggest producing region since it produces 50% of the world’s honey. China leads as a producer since it is the largest one in the world.
China produces 30% of the world’s honey production. China is the leader when it comes to honey consumption as it consumes up to 70% of the honey to meet domestic demand. China is also a leader when it comes to beekeeping. It is one of the exporting leaders at present exporting to many regions in the world despite being one of the largest consumers too. In terms of power consumption of honey, China leads the way too. China has been at the forefront according to Beroe’s honey market analysis although this can change because of India. India is said to be catching up and is going to be one of the leading suppliers of honey in the future.
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Beroe’s intelligence report suggests that the growth of the Indian market will lead to India exporting honey to other Asian countries. Moreover, people will prefer India over China due to quality concerns. When it comes to producing quality honey, India’s name comes up and this can help India to be a leader in production in the future. India has shown significant growth in producing honey from 2005 onwards. The honey market grew at a CAGR of 10% at that time. According to estimates, India produced 6% of global honey production. In the next few years, trends indicate that this rate will grow.
The organic honey market is likely to witness growth too. Beroe predicts that there will be a 2% increase in the production and supply of organic honey in the future. Organic honey is preferred by people because it is better and safer than artificial sweeteners. Moreover, consumers are becoming health conscious which has led to an increase in the demand for organic honey across the globe. The growth of organic honey is stimulated by environmental concerns too. This analysis indicates an increase in consumption in developed and developing countries as people become more aware of organic honey benefits.
North America region imports 10% of the total global organic honey. Most of the organic honey imports of the US are from Brazil although this might change as emerging markets can start exporting to this region. Germany is the largest organic honey market in the European region since it accounts for 10% of the market share. France and the UK are the next largest markets of organic honey. In Asia, India and China are becoming big markets of organic honey. As consumption is increasing in these regions, the demand continues to grow at present. This trend is highly likely to continue as the growth in the near future accelerates too further boosting the organic honey market.
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There are already many established international honey vendors right now in the market. Any new company will have tough competition to deal with if they decide on honey production and supply. This is especially true for those suppliers who are thinking of focusing on organic honey. The main reason is that international honey suppliers have an established base which has made it easy for them to conduct business. Moreover, their ability to include technological innovations into the production of honey is unmatched. The reliability and quality of honey are other factors that international vendors are excellent at and for new companies entering the market this level of brilliance will take time.
The honey market seems to be steadily growing although there might be some constraints that can impact the market negatively. Apiculture farming restrictions can be a problem for the growth of the market as production will be affected. However, the timely resolution of these problems will enable the market to grow at the expected rate. Another constraint is the predators of honey bees which can cause problems in future production. If there is a problem with the beekeeping system then it can cause production to slow down. Moreover, if the proper equipment for apiculture isn’t available then it can cause production delays.
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Dhruval Patel
Sara Wales