Analysis of the honey market in India
The relevance of research
Honey is a sweet, viscous product produced by bees and related insects. Honey is one of the most valuable food products, has healing and dietary properties. There is a growing worldwide demand for both honey and bee products (royal jelly, pollen, propolis, bee venom), which are used as food additives, as well as raw materials in demand in nutraceuticals, pharmaceuticals, cosmetics and perfumery
Purpose of the study
Analysis of the state of the honey market, assessment of the market volume, analysis of competitors, as well as identification of factors affecting the honey market
Content
Part 1. Overview of the Indian honey market
1.1. Main characteristics of the market
1.2. Dynamics of the volume of the honey market 2015-2019 Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Life cycle stage of the honey market
1.5. Competition from substitute products
Part 2. Competitive analysis in the honey market
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of honey production
3.1. Volume and dynamics of domestic honey production
3.2. Share of exports in honey production
3.3. Segmentation of honey production by regions
3.3.1. Production by Union Territories
3.3.2. Production by states of India
Part 4. Analysis of foreign trade deliveries of honey
4.1. Volume and dynamics of honey imports
4.2. Import structure
4.3. The volume and dynamics of honey exports
4.4. Export structure
Part 5. Analysis of honey consumption
5.1. Dynamics of honey consumption volume
5.2. Analysis of the results of tenders for the purchase
Part 6. Price Analysis
6.1. Average producer prices by union territories
6.2. Average consumer prices by states in India
Part 7. Assessment of factors of investment attractiveness of the market
Part 8. Forecast for the development of the honey market until 2024
Part 9. Recommendations and conclusions
Research excerpt
Part 1. Overview of the Indian honey market
1.1. Main characteristics of the market
Beekeeping is an integral part of India's agro-industrial complex. The main product of beekeeping is honey (about 95% of the total volume of beekeeping products).
Honey is a sweet, viscous product produced by bees and related insects. Bee honey is the nectar partially digested in the crop of the honey bee (Apis mellifera) or the sugary secretions of some plants or some insects that feed on the juices of plants.
Honey is one of the most valuable food products, has healing and dietary properties. There is a growing worldwide demand for both honey and bee products (royal jelly, pollen, propolis, bee venom), which are used as food additives, as well as raw materials in demand in nutraceuticals, pharmaceuticals, cosmetics and perfumery.
Honey production in India is accounted for under the OKVED code 01.49.11 - Honey beekeeping.
Foreign economic activity - according to the TN VED code 0409 - Natural honey.
A feature of the industry for India is, on the one hand, traditionality (until 1917, India was the world's largest exporter of honey, supplying products to the largest imperial courts of Europe), on the other hand, dependence on natural and climatic conditions (location in the zone of risky agriculture). The multidirectional influence of factors determines the uneven nature of the market dynamics - an increase in production is followed by a decrease and vice versa.
Diagram 1. The ratio of imported and domestic products in the honey market,%
1.2. Dynamics of the volume of the honey market 2015-2019 Potential market capacity
In the structure of revenue (net) for the Union Territories, the largest share belongs to the Union Territories ...
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1.3. Assessment of factors affecting the market
Let's consider the main factors influencing the market and, accordingly, the demand in the honey market in India.
Macroeconomic factors
GDP (gross domestic product) is used to determine the rate of economic development of any state. GDP is a macroeconomic indicator that reflects the total value of goods, works and services that were produced and provided in the country in a year. Gross domestic product is the main indicator on the basis of which the level and pace of the country's economic development are determined.
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Regarding India, experts predict a difficult and unpredictable period.
Let's take a look at some experts' assessments:
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Exchange rate
...
Social factors
During 2010-2018, there is an increase in the population. ...
Real disposable income
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This trend leads to a general reduction in demand in many sectors of the economy. The negative impact of the factor on the market in question.
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Consumer Behavior
The reason for the low consumption of honey is the high price - higher than in European countries. At the same time, the general trend of growing interest in a healthy lifestyle and healthy eating entails a decrease in sugar consumption by the population in favor of fruits, dried fruits and honey.
Political factors
A feature of the honey market is its weak regulation. Beekeeping is carried out mainly in personal subsidiary farms, a significant part of beekeepers is not registered anywhere. Existing rules and regulations often contradict each other. For the development of beekeeping, it is necessary to take measures to protect bees and their food supply, including through the tightening of legislation on the use of pesticides and agrochemicals.
At the same time, India has not passed the Federal Law on Beekeeping, but there are already 40 regional laws that more or less regulate various aspects of beekeeping, but not fundamental problems.
The lack of state regulation, therefore, negatively affects the industry, entails a low level of honey marketability, a decrease in the number of bee colonies associated with bee diseases, pesticide poisoning, and poor quality of veterinary drugs.
Technological factors
The main factor influencing the honey market is the development of beekeeping.
Chart 8. Number of bee colonies in India in 2014-2019
Consider the main factors affecting the market and, accordingly, the demand in the honey market:
There is a decrease in the population and a decrease in real disposable income, which, together with the relatively high cost of honey in the retail market, negatively affects the volume of honey consumption. As a factor that has a positive impact on the industry, the general trend of growing interest in a healthy lifestyle, healthy eating and consumption of natural products is considered.
Technological factors have a negative impact, which is associated with a decrease in the number of bee colonies, the mass death of bees due to the use of pesticides in agriculture, and bee diseases.
In general, GidMarket analysts assess the impact of macro factors on the honey market as a negative weak force.
1.4. Life cycle stage of the honey market
The life cycle of an industry is the period during which an industry goes through four stages: inception, growth, maturity, and decline. An industry, like a product, has its own life cycle, in which the stages of the industry's origin, its growth, maturity and decline are distinguished. In the early years, changes in the industry (innovation) are carried out dynamically, the life cycle of goods is short. As the industry develops, the rate of innovation decreases and growth is supported by increasing market share.
With maturity, market growth slows, competition increases, and profitability falls. Based on the life cycle model, all industries can be divided into three groups: innovative or developing, mature and recession industries. Firms in these industries have similar strategies, despite the fact that they may produce completely different goods.
Let's determine the stage of maturity of the natural honey production industry.
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The market saturation stage is a turning point in the industry, when all battles for total market power are over and the search for a stable position in a stagnant segment begins.
The stage of market saturation is characterized by the following indicators: very low growth in market capacity, lack of product novelty, high competition and product variability, technological maturity of the market, a decrease in the overall profitability of the industry, a good level of consumer knowledge about product characteristics.
Such structural changes in the industry force each company in the segment to choose one of 3 alternatives (Porter's development strategies):
Focus on cost reduction and adopt a cost leadership strategy.
Focus on product quality and choose a differentiation strategy.
Focus on individual consumer needs and choose a niche leadership strategy.
1.5. Competition from substitute products
The main substitute for honey is sugar. According to Rosstat, sugar consumption per capita in India remains at the level of 39-40 kg per person per year, with a scientifically based rate of 24 kg per year.
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Despite a significant excess of sugar consumption per capita (compared to that of honey), sugar is not a direct substitute for honey, since honey has a number of benefits associated with the beneficial properties of the product.
To a greater extent, honey is competitive with a wide variety of assortment of the modern confectionery industry: sweets, preserves and jams, desserts, cakes, etc. Bright packaging, a rich variety of tastes attract the choice of an ordinary consumer instead of natural products.
Competition in the honey market from substitute products is assessed as significant.
Part 2. Competitive analysis in the honey market
2.1. Major players in the market
A feature of the honey market in India is the predominance of households in the production structure of households - ...% of the total volume.
The honey market, accordingly, is characterized as low-concentration.
In view of the above information - dominance in the volume of production of households and low competitive market concentration - the list of main market participants includes both direct honey producers operating under OKVED 2: (01.49.1) ""Beekeeping"", and processing companies representing honey on the market for retail sales, working according to OKVED 2: (10.89.6) ""Processing of honey (tempering, filtration, decrystallization and mixing of honey)"".
According to Rosstat, in 2019, according to the OKVED code 2: (01.49.1) “Beekeeping”, 243 enterprises are operating (excluding individual entrepreneurs), according to the OKVED code 2: (10.89.6) “Honey processing (tempering, filtration, decrystallization and mixing of honey)” there are 30 operating enterprises (excluding individual entrepreneurs).
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2.2. Market shares of the largest competitors
The assessment of the shares of the largest competitors in the honey market was carried out in value terms based on information on the revenue of companies, the structure of the assortment of the largest market participants, and the volume of the honey market in value terms.
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As a feature of the honey market - the predominant share of production in households - entails an extremely low level of competitive concentration: ...
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2.3. Profiles of major players
The main honey producers are distinguished by a narrow specialization - breeding of honey bees and the production of natural bee honey. Products based on honey occupies a small part of the assortment.
Processing companies mainly offer the market honey in small packages, for retail sale, as well as honey-based products: honey pastes, honey with nuts, honey mousses, honey delicacies; bee products.
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Part 3. Analysis of honey production
3.1. Volume and dynamics of domestic honey production
Diagram 12. Dynamics of honey production in India for 2015 - 2019
The dynamics of the total revenue of the largest producers (TOP-5) corresponds to the dynamics of honey production in India in the analyzed period, which confirms the dependence of production on natural and climatic conditions.
3.2. Share of exports in honey production
The natural honey production industry is oriented mainly to the domestic market.
3.3. Segmentation of honey production by regions
3.3.1. Production by Union Territories
The main volume of honey production in India is concentrated in the Union Territories ...
Table 6. Dynamics of honey production in India by union territories
The largest share in the volume of honey production in India in 2019 belonged to the Union Territories...
The smallest share belongs to the US Union Territories and the SZ Union Territories.
3.3.2. Production by states of India
Among the states of India, the largest volume of honey production was observed in 2019 in the Primorsky Territory ...
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An analysis of the geographical structure of the market allows us to conclude that honey beekeeping gravitates towards regions with developed crop farming.
Part 4. Analysis of foreign trade deliveries of honey
4.1. Volume and dynamics of honey imports
Imports account for a small share of India's honey consumption.
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4.2. Import structure
The main suppliers of honey in India in 2019 were countries such as ...
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4.3. The volume and dynamics of honey exports
Export of honey from India for the period from 2015 to 2019 decreased in kind by ...
Diagram 18. Dynamics of honey export from India in 2015-2019, tons
4.4. Export structure
The main bulk of honey is exported from India to...
In total, the TOP-10 countries - recipients of Indian honey accounted for ...% of exports in 2019.
Part 5. Analysis of honey consumption
5.1. Dynamics of honey consumption volume
The volume of honey consumption in India in 2016 increased compared to 2015 by ...% ...
Chart 22. Dynamics of honey consumption in India in monetary terms, 2015 - 2019
5.2. Analysis of the results of tenders for the purchase
For the period from 01.01.2020/01.11.2020/230 to 80/ / , more than state and commercial tenders for the purchase of natural honey have been announced. In addition to natural honey, the list of products purchased under the tender often includes other food products. The table shows government contracts for which the initial contract amount exceeds Rs .
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Analysis of information on competitive purchases of natural honey, available in the public domain, showed that:
Customers are interested in buying both individually honey and complex purchases with other food products.
Data on honey purchases are placed in a single system several times a week.
There are customers who place tenders for the supply of natural honey several times a year, mainly sanatoriums, sports schools, boarding schools, nursing homes, medical institutions.
Part 6. Price Analysis
6.1. Average producer prices by union territories
Average producer prices for natural honey in India increased between 2015 and 2019. ...
6.2. Average consumer prices by states in India
Consumer prices for honey in India as of September 2020 have settled at ...
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Part 7. Assessment of factors of investment attractiveness of the market
The positive and negative factors of the investment potential of the Indian honey market have almost the same weight.
The most significant positive factors:
...
The most significant negative factors:
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Part 8. Forecast for the development of the honey market until 2024
We will analyze the market based on methods based on identifying trends over time, adjusted for expert opinion in the industry.
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Part 9. Recommendations and conclusions
Macroeconomic factors affecting the considered market
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Conclusions on the prospects for the development of enterprises operating in this market
The prospect of development of enterprises operating in the honey market of India is associated with the main trends:
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Recommendations for entering the market / development in the market
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Diagrams
Diagram 1. The ratio of imported and domestic products in the honey market,%
Diagram 2. Dynamics of the volume of the honey market in India, 2015 - 2019
Chart 3. Dynamics of India's GDP, 2012-2019, Q1-Q2 2020, % to the corresponding period of the previous year
Chart 4. Monthly dynamics of the US dollar against the rupee, 2015-2020 (Jan.-June), Rs. for 1 US dollar
Diagram 5. Population dynamics in India as of January 1, 2010-2020, million people, %
Diagram 6. Population forecast in India for the period 2021-2024, million people
Diagram 7. Dynamics of real incomes of the population of India, 2014 - Q1 2020, % to the previous year
Chart 8. Number of bee colonies in India in 2014-2019
Chart 9. Sugar consumption per capita in India in 2010-2019, kg
Chart 10. Structure of honey production in India by type of producers, 2019
Diagram 11. Shares of the largest competitors in the honey market in 2019
Diagram 12. Dynamics of honey production in India for 2015 - 2019
Diagram 13. Dynamics of the total revenue of the largest producers (TOP-5) of honey in India, 2015-2019
Chart 14. Share of exports in honey production in India, 2015-2019
Chart 15. Structure of honey production by union territories in India, 2019
Diagram 16. Volume and dynamics of honey imports in India in 2015-2019, tons
Diagram 17. Volume and dynamics of honey imports in India in 2015-2019, thousand USD
Diagram 18. Dynamics of honey export from India in 2015-2019, tons
Diagram 19. Dynamics of honey export from India in 2015-2019, thousand USD
Diagram 20. Balance of export and import of honey in India in 2015-2019, tons
Diagram 21. The structure of honey exports from India by country in physical terms in 2019
Chart 22. Dynamics of honey consumption in India in monetary terms, 2015 - 2019
Diagram 23. Forecast of the volume of the honey market in India in 2020 - 2024, tons
Tables
Table 1. Expert forecasts for the decline in real GDP in India in 2020, %
Table 2. STEP analysis of factors affecting the honey market
Table 3. Defining the life cycle stage of the natural honey industry in India
Table 4. Main companies participating in the honey market in 2019
Table 5. Profiles of companies participating in the honey market in 2019
Table 6. Dynamics of honey production in India by union territories
Table 7. Honey production by states of India in 2015-2019, tons
Table 8. Structure of honey imports by supplying countries in 2019
Table 9. Data on tenders for the purchase of honey, announced from 01.01.19/08.05.20/20 to / / , in the amount of more than thousand Rs.
Table 10. Average producer prices in the honey market for the Union Territories of India in 2015-2019, Rs./ton
Table 11. Average consumer prices in the honey market by states of India
Table 12. Assessment of factors of investment attractiveness of the honey market
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