The invention provides a free-flowing particulate honey product comprising crystallized natural bee honey and a process for producing thereof. The free flowing particulate honey product comprises crystals of natural honey in admixture with glucose and is characterised by X-ray powder diffraction pattern having peaks in degrees 2θ that are identified as characteristic peaks of crystalline glucose monohydrate, and diastase index not less than 90% of the diastase index of a crude honey used to prepare the product, calculated based upon the weight of the crude honey. The product retains all the healthy and biologically active properties of natural honey and can be used as a sugar substitute, or as a component of food mixtures, such as dry cereals, muesli, tea, coffee, drink mixtures, and also for preparing beverages, bakery, confectionary, as well as cosmetic and hygienic formulations.