by The coconut products market is estimated to be valued at US$ 7.32 Bn in 2023 and is expected to exhibit a CAGR of 9.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Coconut products include coconut oil, coconut water, coconut cream, desiccated coconut, coconut sugar and other products made from coconut fruit. Coconut oil has various applications in food industry for cooking, confectioneries and bakery products. Coconut water is considered a natural sports drink. The key markets for coconut products include food & beverage, personal care & cosmetics and others. In the food industry, coconut milk and coconut oil has versatile usage in curries, desserts and bakery goods. In personal care industry, coconut oil is widely used in soaps, hair care products and skin care products due to its hydrating and antibacterial properties.
Market Dynamics:
The growing health conscious consumer base and awareness regarding health benefits of coconut products is a major driver for the market growth. Coconut oil contains lauric acid which is beneficial for heart health. It also contains medium chain triglycerides that help in weight loss. Research studies have also found coconut oil to have potential in managing Alzheimer’s disease and other brain related disorders. The increase in disposable income in developing economies is enabling consumers to spend more on superfoods and premium wellness products. This rising income levels supplement the market growth. Further, the booming personal care industry also contributes to the growth of coconut products market, as coconut oil is a widely used ingredient in cosmetic products. Asian populations have incorporated coconut products in regular cooking and cuisines which is also responsible for increasing its demand over the forecast period.
Segment Analysis
The coconut products market is dominated by the dried coconut segment. Dried coconut products such as desiccated coconut, coconut flakes and coconut chips account for over 35% of the total market share. The demand for dried coconut is high owing to its widespread use in cooking for preparation of curries, spices and sweets. It has a long shelf life and does not require refrigeration which makes it convenient to use.
PEST Analysis
Political: The government policies supporting coconut farmers and aim to double farmers’ income by 2022 are boosting production. Subsidies are provided for inputs such as fertilizers, pesticides which is positively impacting the market.
Economic: High demand for coconut products from developing nations undergoing urbanization is fueling market growth. The growing health-conscious population and working demographics preferring coconut-based snacks are driving sales.
Social: Changing lifestyles, rapid urbanization and increasing health awareness is prompting people to include coconut-based foods in their daily diet due to perceived health benefits. Coconut water has become a popular alternative to carbonated drinks.
Technological: Mechanization of farming activities and use of advanced techniques for value addition of coconut products are helping improve quality and yields. Spray dry technology is commonly used for producing high-quality desiccated coconut powder.
Key Takeaways
The Global Coconut Products Market Size is expected to witness high growth, exhibiting CAGR of 9.2% over the forecast period, due to increasing health consciousness. The market size for 2023 is estimated at US$ 7.32 Bn.
The Asia Pacific dominates the coconut products market with over 50% share attributable to major coconut producing countries such as Indonesia, Philippines and India. India accounts for the largest production and is the fastest growing market in the region led by changing food habits and vibrant rural economy.
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. These players focus on product innovation and expansion in high growth markets through mergers and acquisitions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
