China will get more honey as Comvita to boost flow of money

As China's consumer market is constantly expanding and upgrading, New Zealand-based Comvita, a producer of Manuka honey, will continue to invest in the country over the long term, said its top executive.

As the world's largest producer of Manuka honey, a premium type of honey native to New Zealand, Comvita participated in the fifth China International Import Fair in Shanghai in November. During the expo, it showcased a series of products made of Manuka honey.

David Banfield, CEO of Comvita, said: "China is one of our focus growth markets. Its middle-income group is rising, as is their awareness of natural products for healthcare. This will further spur the high-end consumption market and drive more multinational health and nutrition companies to continuously invest in China."

Global market research firm McKinsey & Co estimated that by 2025, China's middle-income group will total 500 million, and by 2031, China will become the second-largest consumption market after the United States.

"Life in China is particularly busy. We feel privileged to provide consumers a moment where they can focus on doing something special for themselves, taking just a moment away from the busy life," said Banfield.

To get closer to consumers and act faster to market changes, Comvita established its regional team of around 200, including its research and development center in Shenzhen, Guangdong province.

This year, the brand introduced a concept of "Manuka+", aiming to leverage Manuka honey to expand its product range for more lifestyle scenarios such as honey-based drinks and aromatherapy.

Specifically, it introduced two new products — honey collagen drink and night rejuvenating honey. The products, which were presented at the expo, are tailor-made for Chinese consumers who have a stronger demand for natural products that contribute to both health and beauty.

"We have a long-term commitment to the Chinese market, and have been optimizing our products and services to meet local needs. The more we invest in the Chinese market, the bigger our ambition gets, and the more desire we have to create an impact in the market. This is a virtuous circle," Banfield said.

This February, Comvita established its branch in Hainan province. With the province's preferential free-trade policies, it is accelerating the introduction of its medical-grade products, such as olive leaf extract, to the Chinese market.

"Hainan is important for us to connect to the free-trade area. The local preferential policies offered us fast-track product registration, enabling us to bring products and services, and even production, to the local place quicker," said Andy Chen, CEO of Comvita Asia-Pacific.

This year marks the 50th anniversary of the establishment of diplomatic relations between New Zealand and China. With the Protocol on Upgrading the Free Trade Agreement between China and New Zealand taking effect on April 7, bilateral trade between the two countries has been further propelled.

Data from the Ministry of Commerce showed that in 2021, trade between New Zealand and China surged 36.4 percent year-on-year to $24.7 billion. The trade value was 5.6 times that of 2008, when the FTA was signed.

Chen Shijie, Chinese consul general in Auckland, said at China-New Zealand Business Dialogue: "China has been the largest trading partner of New Zealand for many years in a row. China's market demand for high-quality goods has steadily increased. New Zealand has unique advantages in agricultural products and trade in services, which can better meet the high-level demand of the Chinese market."

Banfield said: "The FTA plays a crucial role for us, as it promotes governmental conversations, enabling us to constantly push up the quality of products to meet consumer demand. Under the upgrade protocol, we are able to introduce new high-quality products to the Chinese market quicker."

According to the company, in the next step, it plans to expand its investment in China, and take its business in China to the next level.

"We will continue to drive for innovations in product, channel development and brand communication, so as to better meet Chinese consumers' upgraded consumption demand," said Banfield.