by Coconut products are derived from the coconut palm, which yields coconut water, coconut milk, coconut oil, coconut butter, coconut yogurt, coconut cream, and grated or shredded coconut flesh known as copra. Coconut products are rich in fiber, vitamins, and minerals. They are used extensively across various industries such as food & beverage, cosmetic, and others. Coconut oil is extensively used in food preparation and cooking. Coconut milk and coconut cream are used to prepare curries, soups, and other food items.
The global coconut products market is estimated to be valued at US$ 6.07 billion 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 Dynamics:
The growing demand for organic coconut products from health-conscious consumers is expected to drive the growth of the coconut products market over the forecast period. Consumers are increasingly preferring organic products due to rising health awareness. The perception that organic products are more nutritious and environment-friendly is promoting the sales of organic coconut items such as coconut oil, coconut water, and coconut milk.
A key driver referred to in the heading is the growing demand for organic coconut products. Organic coconut products are perceived to be more nutritious and less processed than conventional coconut products. Furthermore, consumers associate organic products with environmental sustainability and minimal health hazards due to the lack of pesticides and chemicals. This positive perception is fueling the demand for organic coconut milk, coconut oil, coconut water, and other products among health-conscious consumers. According to a report by Global Market Insights, the global organic coconut product market is estimated to surpass $2 billion by 2026 due to increasing consumer preference for chemical-free food and beverage products. The rising demand is expected to boost the sales of coconut products including organic variants, driving the overall market growth over the forecast period.
Segment Analysis
The global coconut products market is dominated by the coconut oil segment. Coconut oil accounted for over 30% market share in 2023 owing to its wide range of applications in food, personal care and other industries. Coconut oil is used as cooking oil and in beauty products due to its moisturizing properties. It is also used in producution of margarine and shortening. The desiccated coconut segment is the second largest segment, majorly used in bakery and confectionery products due to its texture and flavor.
PEST Analysis
- Political: The coconut products market is favored by governments in major producer countries through subsidies and price support schemes for farmers. This encourages increased production of coconuts.
- Economic: Growth in population and income levels in Asia Pacific is driving demand for coconut products in food industry. Rising health awareness is boosting use of coconut oil in personal care as well.
- Social: changing consumer preferences towards natural and organic products is benefiting coconut products market. Coconut oil and powders are considered superfoods and find greater acceptability.
- Technological: Production of value-added products like virgin coconut oil through advanced extraction techniques is witnessing increased investment. New product development is expanding applications of coconut products.
Key Takeaways
The global coconut products market is expected to witness high growth over the forecast period driven by increasing health consciousness and changing lifestyle.
Regional Analysis: The Asia Pacific region dominated the market with over 40% share in 2024 led by major producers like Philippines, Indonesia and India. India is the fastest growing market owing to large population, increasing demand for organic products and support from government.
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 mentioned key players are focusing on new product launches and capacity expansions to strengthen their presence across major regions.
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.
