COCONUT PRODUCTS MARKET ANALYSIS

Coconut Products MarketSize and Trends

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.

Market Trends:

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.