Dear Preplounge Community,
How would you approach the following problem?
How much (in US$) of honey do humans consume in the world annually?
Looking forward to your ideas.
(edited)
Market Sizing: How much (in $) of honey do humans consume in the world annually?
I would split the population of 7b in people who have access and who do not have access to honey.
Then for the ones that have access I would split them into the ones who eat honey as it is (e.g. spread on toasts), the ones who prefer adding it to other types of food (e.g. milk, youghurt), the ones who use honey for cooking (e.g. baking cakes) and finally the ones who eat honey on food they buy (e.g cakes, cereal). I would calculate for each segment the average consumed per day and then the yearly consumption.
Then assuming an average cost per kg I would calculate the total cost. I have done the calculation and found roughly $42b.
Does it make sense or does anyone have a better way? Please share.
Ric
(edited)
I would approach this by looking at demand for honey in a single household. Eg in my house we go through a 1/4th later honey in 2 weeks. So 1/2 Ltr per week.
Us number of households : 0population/2.5
assume about 50 percent of numbe of households consume hone: 320x.5/2.5 = 64 m
hone consumed per week= 64x 1/2 = 32 m l
honey consumed per year= 32 x 50 m l
(edited)
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Market Sizing Cases are used to test your quantitative and reasoning skills. The interviewer evaluates your structure, numbers-handling and business sense.
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