Coconut Products Market Size, Share & Trends Analysis Report By Product (Oil, Milk/Cream, Water), By Application (Cosmetics, Food & Beverages), By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global coconut products market size to be valued at USD 105.84 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 17.8% during the forecast period. Increasing awareness regarding the benefits associated with the products coupled with growing demand from major developed countries such as Europe and North America is expected to drive the demand. Increasing variety of coconut-derivatives coupled with their health benefits has positively affected the market. Rising application of major coconut-derivatives like oil and milk is anticipated to further fuel the overall market during the forecast period. Food and beverage, as well as cosmetic manufacturers, are investing in research and development to extract full benefits of the fruit to enhance their product offering.

Coconut oil is beneficial for skin and hair. This drives the demand from personal care and beauty application along with food and beverage industry. Similarly, coconut milk is gaining popularity as an alternative to dairy milk, especially among vegan population. Other derivatives like coconut water, sugar, and chips and cookies are gaining popularity due to the health benefits associated with them. Such diverse uses are anticipated to further fuel the demand in the forthcoming years.

Coconut water is gaining popularity as energy drink due to its natural hydrating properties. Products like coir, sugar, chips and cookies, and desiccated coconut among others are expected to witness increased demand due to their diverse applications. For instance, coir is used to make geotextiles due to its impressive durability and absorbent characteristics.

Desiccated coconut is used to add flavor to curries or for food decoration. Coconut vinegar is another niche derivative made from fermenting coconut water. It is a healthier alternative to synthetic vinegar. It can be used as a preservative or flavoring agent in pickles and sauces. It improves the quality of cooked fish and meat. The product also aids in digestion. Such innovative applications are expected to fuel the demand.

Coconut Products Market Trends

Health-conscious consumers are making coconut products their preference, as they are high in carbohydrates, and contain many vital minerals, protein, and small amounts of vitamins. The health benefits of coconut milk are significant factors leading to the product demand. Coconut milk is rich in calories and 93% of these derive from fat with the inclusion of medium-chain triglycerides (MCTs) which help losing weight, enhance body composition, and boost metabolism. The growing shift in consumer preference and health benefits associated with coconut products is driving the market growth. 

Active and health-fanatic consumers are switching to natural sweet energy drinks with caffeine.  Owing to the presence of properties like essential nutrients and electrolytes, there is an expansion in the demand for coconut water as a natural drink.  The rising consumption of coconut water as a refreshment and energy drink is expected to drive the market growth during the forecast period. 

Coconut plantations are perennial crops and sensitive to climate change. Changes in climatic conditions associated with increased greenhouse gas emissions from urbanization and industrialization have caused obstacles to coconut products. Moreover, other factors like the presence of saturated fats in coconuts, and the availability of substitutes are the restraints that limit the overall expansion of the market.

Product Insights

Coconut oil accounted for the largest market share of 75.0% in terms of revenue in 2018. The product has a high healthy saturated fat content that can boost fat burning and replenish energy levels in the body. It also raises the good cholesterol levels in the body, which is beneficial for reducing the risk of heart diseases. It is also used as an excellent hair care oil which promotes health, shin, and growth of hair. Due to its anti-aging, antibacterial, antioxidant, and anti-inflammatory properties, this product finds its utilization in skin care as well.

Coconut oil is also used for body massage, especially for massaging infants as it strengthens the bones health of babies. When mixed with other fragrant oils, it makes for an excellent body massage oil and acts as a stress reliever. Moreover, the oil is used for cooking in major developing countries like India and China. However, due to its high saturated fat content, it is facing stiff competition from other substitutes like almond and soy milk.

Coconut water is anticipated to register the fastest CAGR of 20.3% in 2025. The consumption is increasing rapidly in Europe due to increasing awareness of its health benefits. The water is rich in electrolytes and does not contain sugar. This makes it a perfect alternative for traditional sports drinks. It can also be used as a refreshment drink as it contains many antioxidants that help neutralize stress. Key manufacturers are focusing on providing attractively packaged coconut water to regions like North America and Europe where the demand is high. This is expected to drive the growth of the coconut products market.

Coconut milk and cream are used in many food preparations and bakery products. It is also witnessing increasing applications in cosmetics and personal care industries. Other derivatives like coconut chips and cookies are used as healthy snacking items. Desiccated coconut has culinary uses in the form of food toppings or coatings. Coconut sugar is another untapped product type, which is slowly gaining momentum owing to the rising consumer awareness.

In many small towns of India, coconut husk plantation is done. This husk absorbs more water and keeps the soil hydrated which is beneficial for plants. Since husk is biodegradable, it contributes to an environment-friendly plantation. These factors are driving the overall demand in the forthcoming years.

Application Insights

Cosmetics and food and beverages are the major application areas. Cosmetics application segment held the largest market share of approximately 65.0% in 2018. Various skin and hair care products use coconut oil or milk as one of the base ingredients. The antioxidant properties of these products are beneficial in anti-ageing creams and for direct application in homemade hair and skin packs. This is expected to fuel market growth over the forecast period. Growing cosmetic market due to its highly competitive nature is encouraging manufacturers to introduce new and innovative cosmetics. This is contributing to the accelerated growth of this segment.

Many countries from Asia Pacific use coconut products in food and bakery preparations. These products are more popular among the vegan population and are slowly gaining popularity among others consumers. However, a recent study by Karin Michels, an epidemiologist at the Harvard TH Chan School of Public Health stated the disadvantages of the saturated fat content in coconuts. This may hinder the growth in terms of demand in the near future.

The products also find application in textile industry. Coconut coir is used to make antibacterial and durable textile fabric. Coir mesh is used for making geotextiles. These textiles are durable, absorb water, facilitate seed germination and are 100% biodegradable. In many African countries, coconut oil is finding applications as biofuel in the energy sector. Increasing consumer awareness about these applications is anticipated to fuel the overall growth.

Regional Insights

In terms of revenue, North America held the largest coconut products market share of approximately 28.0% in 2018. The United States is one of the major importers of coconut oil owing to high demand. Due to increasing health awareness related to obesity, coconut products find applications in weight loss smoothies and no-sugar energy drink, driving the regional growth.

Europe is expected to witness the fastest CAGR of 18.7% over the forecast period, owing to increase in adoption of coconut water and milk. The milk is already being used as a non-dairy alternative in many European countries. However, due to increasing awareness regarding the benefits of coconut water, there has been a huge increase in the demand for these products. Netherlands is the major importer of coconut oil after China and the U.S.

Asia Pacific and Central and South America also contribute significantly to the product consumption as the major plantations are found in countries like Indonesia, Philippines, India, Brazil, Sri Lanka, and Vietnam. These countries are also the major suppliers to North America and Europe. Philippines and Indonesia are the major exporters of coconuts and coconut oil in the world.

Key Companies & Market Share Insights

The global market is highly competitive with the presence of many key manufacturers like Vita Coco, PepsiCo, Coca-Cola, and Eco Biscuits among others. The manufacturers are continuously investing in research to derive new applications and to increase product demand.

Recent Developments

• In July 2021, Vita Coco debuted as Public Benefit Corporation (PBC) to strengthen its commitment to better products. The company constituted to make a positive impact on procurement by adopting this PBC structure for supporting the economic prosperity to address the sustainable development challenges faced by coconut farmers. Hence, the adoption of this structure created a profitable business for Vita Coco in terms of public interest and increasing profit for stakeholders

• In October 2021, McCormick & Company Inc. which is a world leader in flavors, announced plans to open a new eco-friendly and state-of-the-art multipurpose headquarters in Mentone. The project is expected to boost production in Melbourne, Australia in early 2022. Moreover, this will develop a hub for employees as well as customers to focus on innovation and effective collaboration thus, paving the way for developing 500 new jobs related to construction

• In March 2021, the launch of Red Bull Coconut Edition Sugarfree was announced by the organization Red Bull. This product offers Red Bull Coconut Edition Wiiings. The launch of this product catered to consumers who tend to seek versatility and sugar free products

Coconut Products Market Scope

Global Coconut Products Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global coconut products market report on the basis of product, application, and region:

• Product Outlook (Revenue, USD Billion, 2015 - 2025)

  • Coconut Oil

  • Coconut Milk/Cream

  • Coconut Water

  • Others

• Application Channel (Revenue, USD Billion, 2015 - 2025)

  • Cosmetics

  • Food & Beverage

  • Others

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

    • Netherlands

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa