A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE IN ENVIRONMENTAL AND NATURAL RESOURCES ECONOMICS OF SOKOINE UNIVERSITY OF AGRICULTURE. MOROGORO, TANZANIA. 2017Beekeeping practice in Tanzania contributes to foreign earnings, employment, food and industrial raw materials. This study was stimulated by the increased tendency of honey consumption in urban centers of Tanzania. However there was little information on present quantity consumed and factors influencing the choice for honey consumption in Mwanza City. Specifically, the study determined the present quantity consumed, examined factors influencing the choice for consumption and forecasted the demand of honey for year 2020 through 2025. Purposive sampling was used to select three strata based on residential cost categories and random sampling technique was employed in selecting 120 households with 40 households from each stratum. Both descriptive and quantitative statistics were used. Binary Logistic Regression was used in modeling the choice for honey consumption, and income demand and population models were used in forecasting future demand of honey in the study area. The results show that total annual quantity of honey consumption was 423 871.8 kg and per capital consumption was 0.6 kg in 2014. Binary Logistic Regression results show that, taste and preference, natural healing characteristic and freeness of cholesterol and dangerous sugar contents and education level of household head were significant at 5% (P< 0.05) influencing the consumption of honey in the study area. The estimated consumption income elasticity was 0.312 and the forecasted market demand for honey is expected to reach approximately 824.4 and 1,742.5 tons in 2020 and 2025 per year, respectively. The study concludes that honey is consumed in the study area and adjustment in each one of the significant variables can significantly influence the probability of household choice for honey consumption in the study area. The study recommends awareness creation on the benefits of honey, develop mechanism for traceability and promote beekeeping activity.