COCONUT COIR MARKET ANALYSIS

Coconut Coir MarketSize and Trends

Market Dynamics:-

Coconut coir is considered eco-friendly product and is suitable for hydroponic and horticultural applications, as it absorbs water. Growing demand for eco-friendly products with lightweight properties coupled with rising upholstery industry is driving growth of the coconut coir market. For instance, according to the Association of Furniture Manufacturers of India (AFMI), the furniture industry in India was valued at US$ 17,922 million in 2015. Furthermore, the residential furniture sector is expected to reach US$ 15 billion by 2020 according to the same source.

Market Outlook:-

Among regions, Europe held a dominant position in the global coconut coir market in 2018. This is attributed to rising demand for hydroponics and horticulture application, as coir is used to control soil erosion. According to Coherent Market Insights, Europe accounted for the highest market share of 36.44%, in terms of revenue, in the global hydroponics market in 2016.

Moreover, Asia Pacific is expected to be a lucrative region in global coconut coir market by 2020, owing to growing coir fiber production of coir fiber products such as rugs, mats, coir pith, and others, in countries such as India and Sri Lanka. For instance, according to Coir Board, Ministry of MSME, Government of India, India and Sri Lanka accounted for around 90% of global coir fiber production in 2015.

Furthermore, governments are focusing on increasing investment to expand their coconut operations as a strategic plan for developing coconut industry in this region, which is also aiding in growth of the coconut coir market. For instance, in December 2019, the Asian Development Bank (ADB) signed a financing facility with a subsidiary of Silvermill Group, one of the leading players in coconut and coconut-based products, in order to expand their operations in Indonesia. This expansion will allow the group to tap into a much larger supply of coconut resource.