Assessing the Quality and Floral Variety Market Value: A Hedonic Price Model for Honey

This study quantifies the market values, or implicit prices, of honey quality features (e.g., organic and origin information, package-related features) and floral varieties for supporting beekeepers in differentiating their products to escape from price competition characterizing the Italian honey market. The research employed a sample of sales data, 660 observations collected from the Italian market, and a hedonic price model, estimated via Ordinary Least Squares, to assess the implicit prices of honey characteristics. A high premium price was recorded for honey with added royal jelly and propolis, as well as for “100% Italian” honey. In contrast, moderate price premiums were recorded for Protected Designation of Origin and organic honey. Furthermore, the floral varieties used largely affected the product price: the highest premium prices were estimated for the Manuka, Kanuka, and Tawari floral varieties. Price premiums above +50% were estimated for floral varieties such as Strawberry tree, Pine, Cistus, Tree of Heaven, Sainfoin, Marruca, and Solidago. Results suggest that honey quality features and some floral varieties can effectively differentiate products, supporting beekeepers to achieve higher revenues. This study offers empirical evidence of the extent to which floral varieties and other product characteristics affect the market price of honey using a dataset of secondary data, with the aim to support producers to improve their competitive position in the market.