COCONUT MILK POWDER MARKET ANALYSIS

Market Challenges And Opportunities

Drivers

Increasing Preference for Plant-based Foods to Fuel the Market Growth

According to the Vegan Society, the U.K. is witnessing robust growth in the plant-based milk sector in Europe. The sector accounted for around 15% of the overall European market and stood at US$  320.6 million in 2019.  The evolving consumers’ perceptions of plant-based products being safer & healthier as compared to animal-derived products would contribute to fuel the market growth. The growing consumer preferences towards plant-based diets have fairly contributed to increasing its global sales. Moreover, leading manufacturers of coconut milk powder devising novel ways to incorporate coconut milk powder in various bakery and confectionery items would further drive the market growth. The increasing prevalence of lactose intolerance has pushed consumers to shift towards plant-based milk, thereby contributing to its sales growth. Moreover, growing interest in clean-label and natural products is projected to further boost the demand for the product(powdered milk) in the upcoming years.

Increasing Popularity of Asian Cuisine Globally to Propel the Market Growth

According to an article published in the Institute of Food Technologists (IFT)  in 2019, Chinese cuisine is the most-liked and tried Asian cuisine followed by Japanese, Thai, and Korean. Modern-day consumers are willing to experiment with new flavors and expect that the food they eat is flavorsome. Consumers, especially Gen Z and millennial are always seeking out new and exotic flavors. Coconut milk powder is one of the key ingredients in Asian recipes and is becoming rapidly popular among western consumers. The cross-culture food trends in western countries is also a factor driving the popularity of Asian cuisine. Along with this, the gradual increase in the number of Asian restaurant chains in these regions (Asia Pacific) has also contributed to the surging product (Powdered Milk)sales.

Coconut milk Powder Market - Impact of Coronavirus (Covid-19) Pandemic:

The COVID-19 outbreak has put a tremendous strain on the functional milk and nutraceutical industries. Several frontline workers including doctors, nurses, other medical professionals, hygiene workers or sweepers, and others, are working hard to stop the spread of the novel coronavirus. To combat the disease, government agencies have advised citizens to eat a healthy and nutritious diet. This is expected to increase demand for coconut milk, which promotes the body's good health and optimal functioning by providing essential nutrients. Coconut milk powder is necessary for the growth and repair of human cells and tissues. Plant protein is beneficial for weight loss in addition to providing the building blocks for healthy muscles and tissues.

Market Restraints

Fluctuations in Raw Material Price Due to Weather Variability to Hamper Market Growth

Weather variability presents a huge external impediment factor that increases the uncertainty in the coconut production potential. Countries such as Sri Lanka, Indonesia, the Philippines, and Thailand are among the major producers of coconut in the world. Global climatic conditions have been rapidly changing due to an increase in greenhouse gas emissions and industrial activities. Southeast Asian countries are considered to be one of the world’s most vulnerable to climate change. The frequency of extreme weather events has increased in the past decade in the region.

Climate change has caused massive flooding, droughts, and landslides, which has negatively impacted the coconut plantation as it is susceptible to climatic variations. According to True Fruits Co., Ltd.’s sales export manager, the saltwater intrusion in the Mekong Delta region of Vietnam resulted in coconut production decreasing by 20% in 2020 compared to the previous year. Thus, fluctuations in coconut prices would impact the overall price of the end product, which is a major factor hampering the market growth