Preheat oven to 275°F (140°C). Melt butter in small saucepan set over medium heat. Cook garlic about 1 min. until softened. Stir in ketchup, honey and chili powder; bring to simmer. Set aside to cool slightly, but still stay runny, about 5 min.
Toss popcorn with ketchup mixture to coat. Arrange on 2 parchment paper-lined baking sheets. Bake 10 min, stirring occasionally. Rotate trays; bake another 10–14 min., stirring occasionally, until popcorn is dry. Cool completely. Toss with ketchup chips before serving.
For a spicier version, add Sriracha sauce to the ketchup mixture.