Coconut Milk Market Size, Share, Industry, Forecast and outlook (2024-2031)

Coconut Milk Market is segmented By Nature (Organic, Conventional), By Form (Powder, Liquid), By Packaging Type (Bottles, Cans, Pouches, Others), By Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Specialty Stores, Online Retails, Others), and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Coconut Milk Market Overview

Global Coconut Milk Market is estimated to grow at a CAGR of 17.3% during the forecast period 2024-2031. 

Coconut milk is derived from the grated meat of a mature coconut. The rich taste and color of coconut milk are attributed to its high oil content, most of which is saturated fat. The development of the coconut milk market is due to the numerous health benefits that are derived from the intake of coconut milk. Coconut milk helps improve the human immune system and helps reduce critical illnesses. Lauric acid, which is found in coconut milk, is effectively absorbed by the body and used by it for energy. This is one of the key drivers of growth for the coconut milk market.

Coconut Milk Market Summary

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Coconut Milk Market Dynamics

Growing inclination of consumers towards vegan foods

The growing consumer awareness about the vegan diet and the health benefits associated with it plays a crucial role in driving the market. Veganism is widely accepted in various developed countries, such as the U.S. and U.K., owing to their rising animal welfare and environmental concerns. According to the Plant-Based Foods Association data published in 2020, the plant-based milk sales in the U.S. increased by 5% in 2020 compared to the previous year and accounted for 14% of the retail milk sales. Furthermore, the increasing utilization of plant-based milk in various processed foods, such as cakes, yogurt, smoothies, and others, would contribute to propelling the market growth.

Moreover, increasing popularity of Asian Cuisine globally is expected 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 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 are 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 has also contributed to the surging product sales.

However, fluctuations in raw material prices due to weather availability is likely to hamper the 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. 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.

Coconut Milk Market Segmentation Analysis

Low price and greater availability to help conventional coconut milk segment to dominate

Based on nature, the market is segmented into organic and conventional. The conventional variant, albeit exhibiting a slowdown in its sales, remains a dominating segment in this market. The easier availability, coupled with its lower price compared to its organic counterpart, has contributed to driving its demand.

However, the organic segment is experiencing a demand boom, owing to the robust trend of clean-label products among enlightened consumers. Organic products being safe and free from any harmful chemical fertilizers and pesticides make them a healthier option. Among the other claims, organic has highly influenced the consumers’ purchasing decision of plant-based milk, which, in turn, is expected to drive the global market. The organic segment is expected to grow with a fastest CAGR of XX% during the forecast period.

Among the two forms of coconut milk available, the liquid form is the most preferred and hence, holds the larger share. The easier availability of liquid form in retail stores, along with its wide incorporation in beverages, such as coffee and tea, are the factors driving the segment. Due to the thick creamy texture of liquid milk, it is largely utilized in various Asian recipes to enhance its flavor and texture. Further, the replacement of dairy milk with liquid coconut milk for manufacturing vegan yogurts and smoothies has led to its increased sales.

Global Coconut Milk Market Geographical Share

Asia-Pacific region contributed for market revenue share of XX%, due to wide incorporation of milk in various Asian cuisines

The increasing trade activities of coconut-based products between the Asian countries and others have significantly driven the market. Countries such as Thailand, Indonesia, Sri Lanka, and others are among the major producers of coconut. The abundant raw material availability makes the region a prominent producer of coconut-based products. The presence of certain prominent players in the region, such as Celebes Coconut Corporation, Nestle S.A., and Thai Coconut Public Company Ltd., has contributed to the market growth. Further, the rapid urbanization and adoption of westernized culture have nudged consumers towards veganism, which, in turn, is expected to fuel the regional market during the foreseeable future.

The ongoing plant-based product consumption trends in Europe are driving product sales in the region. Consumers have started to replace dairy milk with these plant-based milk in their daily diets owing to their growing awareness about the health-benefiting factors associated with it. According to the Vegan Society, the U.K. is witnessing robust growth in the plant-based milk sector in Europe. The sector accounted for approximately 15% of the overall European market and stood at USD 320.6 million in 2019.  The evolving consumers’ perceptions towards plant-based products being safer & healthier as compared to animal-derived products would contribute to fueling the market in this region.

Coconut Milk Market Companies and Competitive Landscape

The market studied is fragmented and highly competitive, with key players such as such as Nestle S.A, Danone S.A, Dabur India Ltd., and Celebes Coconut Corporation adopting strategies such as product innovation, strategic acquisitions, and expansions to expand their geographical presence and customer base. For instance, in April 2020, Danone S.A., under its So Delicious Dairy Free brand, has launched Pairings Coconut Milk Yogurt Alternatives in four new flavors in the U.S. to offer consumers healthy and delicious plant-based snacks. In June 2020, Drums Food International Pvt. Ltd., under its brand named Epigamia, launched a range of plant-based yogurt made with coconut milk for Indian consumers. In April 2019, Nestle S.A. invested USD 72 million in the single largest coconut milk processing plant in Sri Lanka. By such investments, the company aims to expand its product portfolio, as well as strengthen its geographical presence.

COVID-19 Impact on Coconut Milk Market

Negative impact on the global coconut milk market due to raw material scarcity

Despite the booming popularity of coconut-based products, a significant decline in the market performance was observed in 2020, owing to the COVID-19 pandemic globally. The pandemic caused governments to impose a lockdown to curb community transmission among people. It has also caused operational challenges for the coconut and its product manufacturers. Due to restrictions in public mobility, along with transportation and logistics delays, the coconuts delivered to the processing plants were less. This caused a shortage of raw material, thereby leading to lower production, higher prices, and disruptions in the supply chain.

Further, the shortage in the workforce and the shutdown of processing plants worsened the market growth. According to Sri Lanka Export Development Board statistics, the export of coconut and its derived products declined by 10.33% between Jan-June in 2020, as compared to the same period in the previous year. However, the market is regaining its usual pace with discrepancies in the supply chain easing up and countries lifting up their trade bans.

Why Purchase the Report?

• Understand the current market scenario and viability of global coconut milk market over the forecast period.
• Visualize the composition of the global coconut milk market in terms of nature, form, packaging type and distribution channel to identify major players, growth potential, and market strategies
• Identify the key regulations prevailing in the market and understand their impact on the market over the forecast period
• Understand the key business factors such as market competition, product pricing, new product developments, and patent filings pertaining in the market

What we offer?

• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Excel data sheet with valuable data points of the global coconut milk market – Regional and Country level segmentation
• Product mapping in excel for the key products of all major market players
• Market Share Analysis covering business revenues ($) and revenue share (%) of key market players

Target Audience:

• Food and Beverage Companies
• Food Ingredient Suppliers
• Industry Investors/Investment Bankers
• Education & Research Institutes
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