MIDDLE EAST COCONUT PRODUCTS MARKET ANALYSIS

Market Challenges And Opportunities

Drivers

Increasing awareness about multiple advantages of consuming coconut products has been augmenting the target market growth. Coconut flesh is highly nutritious and provides fibers, vitamins—E, C, B1, B3, B5, and B6, and minerals such as iron, sodium, calcium, magnesium, selenium, and phosphorous. Furthermore, coconut products provide numerous health benefits such as improvement in cardiovascular health, reduction of digestive problems, and weight loss.

Increasing demand for coconut in the manufacturing of confectionery products is expected to foster the Middle East coconut products market growth. Desiccated coconut is also widely used in confectionery products. Subsequently, increasing demand for confectionery products is boosting the coconut products market growth during the forecast period. According to The Department of Agriculture and Agri-Food Canada under the Government of Canada, the confectionery market in the UAE was valued at US$ 481.9 million in 2016, and it is expected to reach US$ 800 million in 2021. The rising trend for lactose-free products, vegan products, and natural ingredients in the confectionery market is increasing the demand for coconut sugar and milk alternatives including coconut milk. New product launches of coconut-based confectionery is further propelling the growth of the Middle East coconut products market. For instance, Mirzam Chocolate Makers, a bar craft chocolate company, introduced confectionery products consisting of dark chocolate, dates, dried fruits, spices, nuts, and flavors including coconut, orange cinnamon, pumpkin seed, pistachio, and caramelized cacao nibs in April 2018. 

Market Restraints

Fluctuating prices of coconut and its products is hindering the Middle East coconut products market growth. Coconut prices are majorly dependent on the source of coconut, transportation charges, serious damage to plantations due to natural disasters, and the global prices of coconut oil. This factor is anticipated to restrain the target market growth.