The change was observed within just two weeks and the improvement increased when the study ended after eight weeks.
Dr Shaun Holt, science director of HoneyLab, the pharmaceutical company that makes Honevo, recently presented the findings at the American Academy of Dermatology meeting in San Francisco.
He considered the study a "major breakthrough".
Dr Hoult and his colleagues were now developing the research further with the renowned Mayo Clinic in the US, which he likened to Google signing up with a Kiwi IT company.
The current size of the rosacea market is estimated to be US$1.5 billion, but many people do not seek a treatment as a prescription from a doctor is usually required.
As the new kanuka honey treatment was available over the counter and not on prescription, the potential market was effectively twice as large and sits at around US$3 billion, Dr Hoult said.
"The study has given us a strong indication that this treatment is really effective -- and you don't need a prescription."
Dr Holt considered the results statistically and clinically significant and at least as good, if not better, than those that have been achieved for standard prescription-only treatments.
"People with rosacea often seek natural treatments rather than prescription drugs, but there are very few natural products that have successfully undergone rigorous clinical trials," he said.
"This medical-grade kanuka honey formulation delivers the best of both worlds. It's not only a natural and safe product, but it's also one that is proven to be effective to the standards of a pharmaceutical medicine."
Recent developments in the understanding of the cause of rosacea had explained why the kanuka honey formulation was so effective.
"It's now thought that the underlying causes of rosacea are mites and associated bacteria living deep in the skin in the affected area, and the rosacea symptoms are an inflammatory reaction to these.
"As medical kanuka honey is effective at killing micro-organisms and reducing inflammation this is an excellent explanation as to why kanuka honey works so well."
The Honevo product, which is presently sold as treatments for acne and nappy rash, is applied as a mask twice a day and then washes off.
Kanuka, or Kunzea ericoides, is a close relative of the manuka bush Leptospermum scoparium, and its honey is distinguished by its lighter colour than the perhaps better-known manuka honey.
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