The Coconut Products Market in trends by increasing demand for plant-based food and beverages
The coconut products market includes items such as coconut oil, coconut water, coconut flour, shredded coconut, and desiccated coconut. Coconut is a versatile fruit that is used in various industries including food beverages, cosmetics, and pharmaceuticals. Coconuts contain high levels of fiber, vitamins, minerals, and healthy fats which make them suitable for consumption and use in skin and hair care products. Coconut oil and coconut water have become popular ingredients in plant-based alternatives to dairy milk and meat due to their nutrition content.
The Global coconut products market is estimated to be valued at US$ 6.7 Bn in 2024 and is expected to exhibit a CAGR of 9.2% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the coconut products market are The Coconut Company (UK) Ltd., Marico Ltd., Enature Organic Products, Ayam Sarl, Nestlé S.A., Renuka Foods PLC, S P Industries Sdn Bhd, Shriram Coconut Products Limited, Star Heritage Products, and Pulau Sambu Singapore Pte Ltd. The growing demand for plant-based, dairy-free, and meat alternatives is driving the growth of the coconut products market. Many manufacturers are expanding their production facilities and distribution networks globally to capture more markets.
Growing demand for coconut water, virgin coconut oil, and shredded coconut from the food and beverages industry is fueling the growth of the coconut products market. Food processing companies are increasingly using coconut products in soups, sauces, desserts, smoothies, and baked goods due to their nutritional profile and versatile uses. Many consumers also prefer using virgin coconut oil for cooking instead of other oils due to associated health benefits.
The global expansion of key players in the coconut products market through acquisitions, partnerships, and new product launches is further propelling market growth. Manufacturers are focusing on territories such as Europe, North America, Asia Pacific, and Latin America that have high demand potential for coconut products. Production is also being ramped up in coconut growing regions to cater to the burgeoning global demand.
Market key trends
The rising demand for plant-based food and beverages is a major trend in the coconut products market. Many consumers are switching to vegan diets and opting for dairy and meat alternatives made from natural ingredients like coconut for health and environmental benefits. Beverage companies have launched coconut milk-based coffee creamers, yogurts, ice-creams, and cheese in response to this trend. Food processors are also incorporating more coconut products into packaged foods to attract health-conscious buyers.
Porter's Analysis
Threat of new entrants: Moderate threat of new entrants given requirement of strong distribution channels, product diversification and branding.
Bargaining power of buyers: Moderate bargaining power of buyers due to availability of substitute products.
Bargaining power of suppliers: High bargaining power of suppliers since coconut cultivation has concentration in few regions like Asia Pacific.
Threat of new substitutes: Low threat of substitutes as coconut products have various applications in food and personal care industries.
Competitive rivalry: High competition due to presence of global as well as regional players offering varied coconut products.
Geographically, the Asia Pacific region accounts for majority share in terms of value sales of coconut products market. Countries like Philippines, Indonesia and India are the largest producers of coconuts globally and have concentration of coconut cultivation.
The Middle East and Africa region is expected to witness highest CAGR in coconut products market during forecast period. Increasing usage of coconut products in food as well as personal care industries and surging exports of coconut from Philippines and Indonesia to Gulf nations are propelling growth of coconut products market in Middle East and Africa region.
