Coco Coir Market Size
The Global Coco Coir Market reached USD 361.2 million in 2022 and is expected to reach USD 693.7 million by 2031, growing with a CAGR of 8.5% during the forecast period 2024-2031.
Consumers are increasingly seeking environmentally friendly and sustainable alternatives to traditional products. Coco coir, being a renewable and biodegradable substrate, is well-positioned to meet this demand. In October 2020, BC SoftWear introduced biodegradable slippers from natural coconut fibers. The sole of the new slippers is made up of naturally produced coir, a fiber taken from the coconut husk, and the slippers are made entirely of natural fibers.
Countries like Sri Lanka, India, and the Philippines remained major producers and exporters of coco coir products. The global reach of these countries and their capacity to meet international quality standards contributed to export growth.
Coco coir grow bags have gained significant popularity in the coco coir market due to their advantages in various agricultural and horticultural applications. Consequently, Asia-Pacific has a significant share in the growth of the coco coir market due to its large production base and export focus. According to the International Coconut Community From January to December 2020, Indonesian exports of coir-based products totaled 37,899 tonnes, generating more than USD 9 million.
Market Scope
| Metrics | Details |
| CAGR | 8.5% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Product, Nature, Source, Application, End-User Industry and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | North America |
| Largest Region | Asia-Pacific |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Equipment Type Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Increasing Demand for Eco-Friendly Products
As consumer awareness of sustainability and environmental issues grows, there is an increasing preference for products that are eco-friendly like coco coir. Coco coir is a natural and biodegradable growing medium made from coconut husks. This source material is renewable and abundant, as coconuts are harvested regularly. The production of coco coir typically has a lower environmental footprint compared to alternatives like peat moss or synthetic growing media. It involves fewer harmful chemicals and processes, making it a more environmentally friendly choice.
In September 2022, in India, Coir Minister P. Rajeeve officially unveiled coir-made bags as a replacement for plastic grow bags, coir pith-based fuel as a Charcoal substitute and a tender coconut crusher. These three environmentally friendly products created by this country's National Coir Research and Management Institute (NCRMI) are about to enter the market. Hence, the increasing demand for eco-friendly products is driving the coco coir market growth by aligning with consumer preferences, sustainability goals, and environmental concerns
Growing Horticulture Industry
The horticulture industry, including greenhouse and indoor farming, has been expanding rapidly. According to the Department of Agriculture & Farmers Welfare, India is currently generating about 320.48 million tonnes of horticulture which is more than the food grain production. Coco coir is favored for hydroponic and soilless growing systems due to its ability to maintain an optimal root environment.
Coco coir is an ideal growing medium for horticulture. It offers excellent water retention and aeration properties, making it conducive to healthy plant growth. Horticulture has seen a significant shift towards hydroponic and soilless growing systems, especially in commercial operations. Coco coir is well-suited for these systems because it provides a stable substrate for plant roots and can be customized for different crops.
High Competition From Other Substitutes
The coco coir market faces competition from other substitutes like peat moss and rock wool, and this competition can restrain its growth. Peat moss and rock wool can often be cheaper alternatives to coco coir. Peat moss, in particular, has historically been a popular choice due to its lower cost. Price-sensitive consumers or commercial growers may opt for these cheaper options, especially when looking to reduce production costs.
According to the U.S. Geological Survey, in 2021, the United States produced 324 thousand metric tons of peat. Peat moss and rock wool have a longstanding history of use in horticulture and gardening, and they have firmly established themselves as prominent materials in the market.
Market Segment Analysis
The global coco coir market is segmented based on product, nature, source, application, end-user industry and region.
Rising Awareness about the Exceptional Advantage of Coco Coir Grow Bag for Plant Growth
Coco coir grow bags are user-friendly and convenient for both amateur and professional growers. They come pre-packaged and are easy to handle, reducing the setup and labor required compared to loose coco coir. In May 2020, Rx Green Technologies entered the compressed coco coir market by launching 3-gallon and 1-gallon coco coir grow bags, as well as 6-inch and 4-inch coco coir grow cubes, to the compressed coco coir market.
Coco coir grow bags offer several advantages for plant growth. Their porous exterior surface provides superior ventilation, temperature control, and water drainage capabilities. When coir fiber is the primary component of the growth medium within these bags, it ensures optimal hydration for plants without the risk of overwatering. This makes coco coir grow bags a highly effective and reliable choice for successful plant cultivation.
Market Geographical Share
Asia-Pacific’s Growing Coconut Coir Export
The countries in Asia-Pacific which includes India, Sri Lanka, Philippines, and Indonesia, are the major contributors to global coconut production. As per the India Brand Equity Foundation, in 2021–22 India was the world's largest producer of coconuts. India's coconut production accounted for approximately 31.45% of the global output, with a staggering production of 19,247 million coconuts. Coco coir is derived from coconut husks, and the availability of this raw material in the region makes it a natural hub for coco coir production.
Asian countries have been proactive in exporting coco coir and related products to global markets. According to the India Brand Equity Foundation (IBEF), in 2021–2022, the country's exports of coir and coir-related products were USD 528.13 million. The export volume was 1.23 million metric tonnes (MMT) for the same period, up 6.2% year over year (YOY). The region's dominance in the production and export of coco coir has contributed significantly to its market growth.
Coco Coir Companies
The major global players include Bali Coco Company, Klasmann-Deilmann GmbH, Cocolandlanka (Pvt) Ltd, Consarc (Pvt) Ltd, Viagrow, Allwin Coir, BENLION COIR INDUSTRIES., Kumaran Fibres, Lanka Coco Products, and Pelemix Ltd.
COVID-19 Impact on Market
COVID Impact
The pandemic disrupted supply chains worldwide. Lockdowns, restrictions on movement, and reduced labor availability affected the production and transportation of coco coir and related products. This led to supply shortages and price fluctuations. Many coco-coir-producing regions faced labor shortages due to lockdowns and health concerns, which affected harvesting and processing operations.
Export-oriented coco coir producers faced challenges due to disruptions in international trade and shipping. Lockdowns in importing countries and changes in consumer behavior affected the export market for coco coir.
Russia- Ukraine War Impact
The conflict affected transportation routes, trade agreements, and logistics in the region, which disrupted the supply chain for coco coir products. Many coco coir products are produced in countries like Sri Lanka, India, and the Philippines, which rely on stable international trade for distribution. Hence, the disrupted supply chain led to an impact on the global coco coir market.
Geopolitical instability led to fluctuations in commodity prices, including those of natural fibers like coco coir. Importers and exporters in the coco coir market faced challenges related to price volatility, making it difficult to plan their businesses effectively. Fluctuations in currency exchange rates due to geopolitical instability impacted the cost of importing and exporting coco-coir products, potentially affecting pricing in international markets.
Key Developments
- In April 2020, MJ Harvest, Inc., MJHI, announced that a total of 700 yards of coconut coir bricks have arrived in California and are currently being processed for distribution to customers. These organic coir bricks, which are approved by the Organic Materials Review Institute (OMRI), are a crucial component that is used to launch a line of proprietary blended soils created by Elevated Ag Solutions, Inc. into U.S. and international markets.
- In September 2022, Profile Products. U.S.-based manufacturer of specialty agriscience materials declared the acquisition with Nivetha Exporters, an international leader in the production of premium coco coir goods. All Nivetha product lines, as well as the organization's world-class facilities in Southern India and devoted workforce, are included in the transaction. Nivetha has been rebranded to CoirSci as part of the acquisition.
- In October 2022, Technopark announced that it is set to use coir and grass/herbs to safeguard Thettiyar Thodu's embankments. According to the bid document, the major scope of work includes clearing out the jungle and trees, building down a foundation of earthwork, filling it in, and compacting it. It also includes laying down geotextile coir mats and planting herb and tree saplings.
Why Purchase the Report?
- To visualize the global coco coir market segmentation based on product, nature, source, application, end-user industry and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of coco coir market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global coco coir market report would provide approximately 77 tables, 83 figures and 189 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
