by Coconut products such as coconut oil, coconut water, coconut milk, and coconut cream have widespread application in industries like food and beverages, cosmetics, and pharmaceuticals. Coconut oil has versatile usage in cooking, massage, moisturizing, and hair care owing to the presence of medium chain fatty acids like lauric acid. Coconuts water has high nutritional value and is a natural isotonic drink rich in electrolytes like potassium, magnesium and phosphorus. Coconut milk and cream are used as a dairy alternative in vegan cuisine and also find application in sauces, curries and soups due to their texture enhancing property. The increasing vegan population combined with rising awareness about the nutritional and functional benefits of coconut products is boosting the growth of industries utilizing coconut ingredients.
The global Coconut Products Market is estimated to be valued at US$ 6.07 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 key trends:
The coconut products market is witnessing the trend of product innovation. Manufacturers are developing innovative product forms and varieties of coconut products to suit evolving consumer needs and preferences. For instance, coconut water is available in flavors like pineapple, orange and lime to appeal to a wider consumer base. Coconut cream and coconut milk are available in convenience pack sizes for on-the-go consumption. Coconut oil variants include virgin coconut oil with high nutritional value and refined bleached deodorized coconut oil for cooking purposes. Product diversification and development of specialized coconut ingredients with defined functional benefits is expected to drive the growth of the coconut products market over the forecast period.
Porter’s Analysis
- Threat of new entrants: The threat of new entrants in the coconut products market is low due to high capital requirements and the presence of established brands with strong distribution networks.
- Bargaining power of buyers: The bargaining power of buyers is high given the availability of substitute products like almonds and cashews. Buyers can switch to alternate products if prices increase.
- Bargaining power of suppliers: Individual coconut farmers have low bargaining power against large processors and distributors in the market. However, organized cooperatives of farmers are able to negotiate better prices and contracts.
- Threat of new substitutes: Products like almond, cashew and palm kernels pose potential threats. However, the unique taste and multiple uses of coconut make it difficult to completely replace.
- Competitive rivalry: The market is highly fragmented with private label brands competing alongside international and regional brands. Pricing strategy and product differentiation remain important factors affecting competitive rivalry.
Key Takeaways
The global coconut products market is expected to witness high growth over the forecast period supported by rising health consciousness. The Asia Pacific region currently dominates the market aided by major coconut producing countries such as Indonesia, India, and the Philippines. Key players operating in the region have been expanding manufacturing capacities as well as promotional activities to reinforce market presence.
Regional analysis: The Asia Pacific region accounts for around 80% of the global production of coconuts and coconut-related products. Indonesia and the Philippines are the leading producers globally. Changing lifestyles and growing health awareness is leading to higher domestic demand for coconut products in the region beyond traditional uses.
Key players: 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 are focusing on new product launches, capacity expansions as well as promotional campaigns to boost brand recognition.
