COCONUT PRODUCTS MARKET ANALYSIS

The coconut products market was valued at US$ 6.7 Billion in 2022 and is projected to reach US$ 13.6 Billion by 2030; it is expected to grow at a CAGR of 9.25% during the forecast period. Coconuts are highly nutritious as they are high in fibers; vitamins C, E, B1, B3, B5, and B6; and minerals such as sodium, iron, calcium, magnesium, phosphorous, and selenium. Coconut products, i.e., products extracted or derived from coconuts, improve cardiovascular health, promote blood sugar control, aid in weight loss, and boost brain function in Alzheimer’s disease. Coconut water boosts kidney health, provides a cardio-protective effect, offers rehydrating effect post-exercise, aids in maintaining blood pressure levels, and aids in diabetes management. Additionally, the increase in demand for coconut products such as coconut milk, coconut water, and desiccated coconut in the food & beverages industry is one of the major factors driving the market.

Coconut products market: Growth drivers

• Rising Popularity of Plant-based Alternatives to Propel Market Growth

According to the Plant-Based Foods Association, U.S., growth in retail sales of plant-based foods and plant-based milk increased by 11% and 5%, respectively, while the growth of all foods and dairy-based milk increased slightly by 2.2% and 0.1%, respectively. The growing demand for plant-based milk is primarily attributed to the rising awareness regarding the health benefits associated with plant-based beverages. This ultimately contributes to the growth of the global coconut derivatives industry. Earlier, coconut derivatives such as coconut oil and coconut milk were only utilized as food ingredients. However, in the recent past, consumer awareness regarding their usefulness to improve overall health has necessitated manufacturers to invest in developing value-added products. In July 2020, Epigamia, in collaboration with Danone S.A., launched plant-based yogurt made using coconut milk in India. This launch will enable Danone to capitalize on the rising trend of coconut milk as a dairy alternative.

• Increasing Utilization of Coconut Derivatives across Cosmetic & Skincare Industry to Drive Coconut Derivatives Market Growth

According to the market analysis shared by the Foreign Agricultural Services (FAS) and the U.S. Department of Agriculture (USDA), the industrial consumption of coconut oil for the cosmetic and skincare industry has increased from 1.51 million metric tons to 1.79 million metric tons. The growing awareness of coconut oil's anti-aging properties has significantly increased its demand across the beauty & skincare industry. The global market for these derivatives of coconut is highly propelled by the increasing demand for coconut-based skincare and haircare products among consumers.

Coconut products market: Market Restraints

• Fluctuations in Coconut Production Owing to Climatic Factors to Restrain Market Growth

The market is significantly hampered by fluctuations in the production of coconut due to various climatic factors. Global climate has been changing rapidly, mainly due to the rising emission of greenhouse gases through multiple human activities such as deforestation and increased industrialization. Coconut plantation is highly sensitive to climate changes as it is a perennial crop. Climate change affects coconut plantations owing to higher temperatures, preeminent carbon dioxide concentration, rainfall changes, increased weeds, pests and diseases, and the growing susceptibility to organic carbon pools. Also, the vulnerability of coconut plantations to climate change primarily depends on the intensity of atmospheric or soil drought, adaptations, and sensitivity. Drought stresses heavily impact production in almost all coconut-growing regions, primarily rain-fed crops. Furthermore, summer dry spells every year, apart from the frequent drought years, affect production. The factors mentioned above reduce coconut production and ultimately restrain market growth.

Figure 1. Coconut Products Market, By Product

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Among products types, the coconut oil segment is expected to witness a significant market share during the forecast period. This is owing to its unique characteristics such as saturated fat content, stability, and biodegradability and it provides long shelf life to fried products.

Coconut products market: Regional Analysis

Asia-Pacific region is expected to dominate the global market during the forecast period. This is attributable to the increasing trade activities of coconut derivatives between Asian countries and other regions, mainly Europe and North America. The presence of leading manufacturers such as Axelum Resources Corp., Celebes Coconut Corporation, and PT Global is expected to boost the market growth in the region. The market is witnessing robust growth in Europe due to the ongoing trend of plant-based products. Consumers are highly inclined towards a plant-based diet as it is perceived to be a way to achieve a healthy and sustainable balance between animal products such as meat & milk and vegetables. The presence of key players such as Vita Coco, McCormick & Company, Inc., and Hain Celestial drives the market's growth in North America. Also, the growing awareness regarding health benefits associated with coconut derivatives consumption is anticipated to drive the demand for coconut products in the region. In Rest of the World, there is an upward trend of clean beauty products among South American, Middle Eastern, and African consumers making them choose sulfate-free, paraben-free, and silicone-free beauty products. The popularity of these derivatives such as coconut milk, cocoa butter, and natural ingredients, particularly argan oil is increasing in South American consumers to maintain their healthy hair.

Figure 2. Coconut Products Market, By Region

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Coconut products market: Recent developments

• In May 2022, Danone announced the launch of Alpro, its second dairy-free brand in China after Vega, to tap the emerging plant-based food market. The brand offers coconut milk, among other products.
• In January 2022, Vita Coco partnered with Lyft to offer discounts on rides home and hydrating coconut water. They claimed that the partnership is to keep consumers hydrated.
• In February 2021, Los Angeles-based growth-equity investor PowerPlant Ventures announced its acquisition of ZICO coconut water from The Coca-Cola Company.

Coconut products market: Key Companies

Major players operating in the coconut products market include The Coconut Company (UK) Ltd., Marico Ltd., Enature Organic Products, Ayam Sarl, Nestlé S.A., Renuka Foods PLC, S & P Industries Sdn Bhd, Shriram Coconut Products Limited, Star Heritage Products, and Pulau Sambu Singapore Pte Ltd.

Definition: Coconut flesh is highly nutritious and offers fibers, vitamins E, C, B1, B3, B5, and B6, and minerals such as iron, sodium, calcium, magnesium, selenium, and phosphorous. Coconut products offer multiple health benefits such as improvement in cardiovascular health, reduction of digestive problems, and aid in weight loss. Coconut water provides a cardio-protective effect, boosts kidney health, aids in diabetes management, offers rehydrating effect post-exercise, and aids in maintaining blood pressure levels.