Comvita reaps sweet rewards in growing consumer base

David Banfield, CEO of New Zealand health supplement company Comvita, said the China International Import Expo serves as an expressway for all companies, regardless of their size or reputation, to enter the Chinese market.

"The role the CIIE plays — it's a window for renowned brands to showcase their newest products while acting as a bridge for small and emerging brands to enter the Chinese market and access resources," Banfield said in an exclusive interview with China Daily at the sixth CIIE in Shanghai from Nov 5-10.

"For Comvita, the CIIE is a great platform for branding. As a four-time participant in the event, we have made connections with a large number of business partners and reached strategic agreements with some of them," Banfield said.

This year, in a first for the company, Comvita chose the CIIE as the platform to introduce its new global propolis product to the Chinese market. Additionally, the company launched a probiotic Manuka honey solid drink at the expo as part of its diversification of Manuka products to attract a wider range of consumers.

Banfield said Manuka honey, Comvita's core product, is derived from New Zealand's indigenous Manuka flower and has been well received globally. He added that the scarcity of the Manuka flower, which only blooms for two to six weeks per year, makes the honey a valuable resource. The CEO added that Comvita has gone to great lengths to ensure its Manuka honey possesses a high level of antibacterial properties, and he expressed a positive outlook for Comvita's future development in China, highlighting its resilient growth during the COVID-19 pandemic.

Comvita currently distributes its products to more than 50 countries and regions. China, being one of the company's pivotal markets, accounted for 46 percent of its global revenue in 2022, showcasing an average annual growth rate of 5.4 percent.

"Despite the challenges posed by the COVID-19 pandemic, Comvita has maintained a strong performance in China," Banfield said. "This gives us the confidence to continue to scale up and generate profit over the next five years."

Banfield attributed the anticipated growth to several factors, including the dynamic nature of the Chinese market and extensive e-commerce networks. He expressed his admiration for the dynamism of the Chinese market, with a large quantity of new products being launched every day.

"The efficiency and effectiveness of the product development process, which is unique in China, has led Comvita to establish our Asian new product development center here," he said. "This move benefits the domestic market as well as customers in Asia and worldwide."

Market research firm McKinsey & Co has estimated that by 2025, China will have approximately 500 million middle-income consumers, and the country is projected to become the world's second-largest consumer market by 2031, behind only the United States.