Coconut Products Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Global Coconut Products Market is Segmented By Product (Coconut Oil, Coconut Water, Coconut Milk/Cream, Coconut Powder, Coconut Meat, Others), By Form (Solid, Liquid, Powder), By Nature (Organic, Conventional), By Distribution Channel (Supermarket/Hypermarket, Convenience Stores, E-Commerce, Others), By Application ( Food & Beverage, Cosmetics, Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Coconut Products Market Overview

The Global Coconut Products Market reached US$ 6.9 billion in 2022 and is expected to reach US$ 14.0 billion by 2030, growing with a CAGR of 9.3% during the forecast period 2024-2031.

Rising health and wellness trends act as a key trend for coconut products market growth. Coconut products are positioned as functional foods due to their potential health benefits, including improving heart health, aiding digestion, and supporting weight management. In January 2023,  Cocos Organic launched organic coconut milk ‘Yog Tubes’ and light organic yogurt. The new natural light yogurt substitute from Cocos Organic has live bacteria strains, including Bifidobacterium, and is manufactured with 98% organic coconut milk.

The rise of plant-based and vegan diets increased the demand for coconut-based products as they are often utilized as dairy alternatives e.g., coconut milk and coconut yogurt. According to the World Animal Foundation, globally there are approximately 88 million vegans. With this rising vegan population, the demand for vegan diets including coconut products is also increasing.

Coconut oil holds a significant share in the coconut products market as it is a versatile ingredient in cooking, baking, skincare, and hair care. Asia-Pacific dominated the coconut products market because of its extensive coconut cultivation. As per FAO, 90% of the world's coconut products, including virgin coconut oil, water, and milk, are produced in the Asia-Pacific region.

 Coconut Products Market Scope 

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Coconut Products Market Trends

Growing Adoption of Vegan and Flexitarian Diet

Vegans and flexitarians avoid traditional dairy products due to ethical, environmental, or health reasons. Coconut-based alternatives such as coconut milk, coconut yogurt, and coconut cream are popular choices as dairy substitutes. In June 2022 M&S introduced a brand-new coconut cream. With the assertion that it aids Malaysians in enjoying and maintaining a healthy lifestyle.

Coconut products add creaminess, and flavor to plant-based recipes. Whether in curries, soups, sauces, or desserts, coconut milk, coconut cream, and coconut flour are essential ingredients in vegan and flexitarian cooking. They enhance the taste and texture of plant-based dishes. The use of coconut products in various plant-based recipes drives the demand for coconut-based dairy alternatives.

Growing Demand for Coconut Products in the Food and Beverage Industry

Coconut products offer diverse ingredients that elevate the taste, consistency, and nutritional value of many food and beverage items. Coconut milk, cream, oil, water, and flour are preferable components with broad applications in various recipes, making them highly favored by food manufacturers. In May 2023, McDonald's Singapore introduced a special coconut soft serve. At all of its dessert shops throughout Singapore, the new coconut cone treat is available.

Coconut water has gained popularity as a natural and electrolyte-rich beverage. Del Monte, one of FieldFresh Foods' premium packaged food brands introduced King Coconut Water. This is renowned for its outstanding health and flavor benefits. The growing demand for coconut products in the food and beverage industry is driving the coconut products market growth.

Fluctuations in Coconut Production Due to Climatic Factors

Coconut trees are susceptible to damage from tropical storms, cyclones, hurricanes, and typhoons. These weather events can uproot or break coconut palms, damage fruit clusters, and strip the trees of their coconuts. Such natural disasters can result in substantial crop losses, leading to reduced coconut supply.

Coconut production can be highly erratic due to unpredictable weather conditions. Even in the absence of major natural disasters, variations in rainfall, temperature, and humidity can affect coconut tree health and yield. Erratic yields make it difficult for coconut producers to consistently meet market demand.

Coconut Products Market Segment Analysis

The global coconut products market is segmented based on product, form, nature, distribution channel, application and region.

Rising Demand for Coconut Oil for both Cooking and Skincare

Coconut oil is a highly versatile ingredient. It is used for cooking as well as for skincare. In February 2022, Dabur India, India’s leading Ayurvedic and Natural Health Care Company launched Virgin Coconut Oil. Dabur Virgin Coconut Oil is 100% natural and used for cooking as well as massage oil and other traditional uses for healthy skin and hair.

Coconut oil is widely utilized in the beauty and personal care industry for its moisturizing and nourishing properties. According to a market study by the U.S. Department of Agriculture (USDA) and Foreign Agricultural Services (FAS), the industrial consumption of coconut oil for the cosmetic and skincare industry increased from 1.51 million metric tonnes to 1.79 million metric tonnes.

Coconut Products Market Geographical Penetration

Asia-Pacific’s Growing Coconut Production

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 production of 19,247 million coconuts. The long history of coconut farming, makes the region have the highest share in the coconut products market.

The popularity of coconut water as a natural, electrolyte-rich beverage is growing in Asia-Pacific. Hence, manufacturers are launching various products and expanding the coconut products market in that region. In April 2023, B Natural, a juices and beverages brand of ITC introduced packaged tender coconut water in India.

Coconut Products Market Companies

The major global players include, THE VITA COCO COMPANY, INC., Pepsico, Eco Biscuits, KOH COCONUT IRELAND, Pacific Eastern Coconut Utama, Universal Food Public Company Limited, ZICO Rising, Inc., Ducoco, Coco do Vale, Sambu Group

COVID-19 Impact on Coconut Products Market

COVID Impact

The pandemic heightened consumers' focus on health and wellness. Many turned to natural and plant-based products like coconut oil and coconut water, believing them to have potential health benefits. This boosted the demand for coconut products with perceived health advantages. With lockdowns and restrictions in place, more people began cooking and baking at home. Coconut products, known for their versatility, were used in a wide range of homemade recipes, including curries, smoothies, and desserts.

However, the coconut products market faced disruptions in the supply chain due to restrictions on transportation and movement. This affected the timely harvesting, processing, and distribution of coconuts and coconut-derived products. Lockdowns and safety concerns led to labor shortages in coconut-producing regions. This impacted the harvesting and processing of coconuts, further delaying production and supply.

Russia- Ukraine War Impact

The conflict in Russia and Ukraine disrupted trade routes and transportation infrastructure, leading to significant supply chain disruptions. This resulted in delays and reduced shipments of coconuts and coconut-derived products, impacting both their availability and pricing in the affected region.

The war also contributed to commodity price volatility, particularly affecting coconut-related products like coconut oil. This price instability had repercussions for both coconut product producers and consumers in the market. The conflict's impact on the coconut products industry underscored the interdependence of global trade and the vulnerability of supply chains to geopolitical tensions.

Key Developments

• In July 2023, Zuma Valley, a food brand dedicated to coconut products declared that organic retailer, Erewhon, has made a strategic equity investment to support Zuma Valley in its aim to put coconut in everything.
• In February 2022, Dabur India, India’s leading Ayurvedic and Natural Health Care Company launched Virgin Coconut Oil. Dabur Virgin Coconut Oil is 100% Natural and may be used for cooking as well as massage oil and other traditional uses for healthy skin and hair.
• In July 2020, Vita Coco, a coconut water brand, launched a new line of functional coconut water with MCT. The new product is available in 3 flavors Vanilla Latte, Coconut Chocolate, and Chai.

Why Purchase the Report?

• To visualize the global coconut products market segmentation based on product, form, nature, distribution channel, application 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 coconut products 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 coconut products market report would provide approximately 77 tables, 80 figures and 189 Pages.