The global coconut sugar market is expected to witness significant growth on account of its increasing application in the food and beverage industry. The product is manufactured using coconut sap and has been used as a traditional sweetener in the Southeast Asian region for a thousand years. Increasing demand for coconut sugar in the natural foods sector is anticipated to drive the industry growth over the forecast period.
Growing demand for the product to replace traditional sweeteners such as cane sugar is likely to drive industry growth over the next eight years. The product has a lower glycemic index as compared to cane sugar and honey. As a result, it reduces the chances of sugar level rise in the bloodstream. Growing demand for it in beverages such as tea and coffee to replace cane sugar is expected to open new avenues for the industry growth over the next eight years.
Increasing demand for the product for manufacturing various skincare products such as body scrubs, shaving gels, face, and body creams is anticipated to drive market growth over the projected period. The growth of FMCG industry coupled with growing consumer demand for herbal skin and haircare products is expected to have a positive impact on the growth.
The product is high in mineral content and is a rich source of various iron, magnesium, potassium, and magnesium. Also, it contains various vitamins such as B6, B2, B1, and B3. The product has over 30 times phosphorous, and 18 times potassium than brown sugar. As a result, the product is likely to gain a competitive advantage over its counterparts.
The industry is undersupplied and it has high potential in the food industry for manufacturing sauces and bakery products. The Philippines, Indonesia, and Thailand have been major producers and accounted for about 80% of the global production over the past few decades. The coconut sugar manufactured in these countries has high demand in domestic as well as international markets such as New Zealand, South Africa, Australia, U.S., France, Canada, and Norway. Increasing consumption of coconut sugar in Europe owing to its high demand for food & beverage and cosmetics application is expected to propel industry growth over the next eight years.
The majority of the manufacturers are small scale and do not invest more in marketing and publishing their products in the world market, which is likely to hinder market growth. In addition, the quality offered by different manufacturers is not standard and differ in appearance and texture. As a result, it is difficult to pass it in the export market, which is likely to hamper demand over the next eight years.
Coconut sugar accounts for a significant share in the alternative sweeteners industry and is expected to witness significant growth owing to growing end-use industries including food & beverage and cosmetics. Also, rising prevalence of diabetes, especially among the middle edged population is expected to increase demand for coconut sugar over the projected period. Growing consumer awareness towards health and rising demand for plant-derived products is likely to have a positive impact on the industry growth.
Asia Pacific is expected to be the largest producer for the item owing to abundant raw material availability and technology know-how. The prices for the product are likely to increase over the forecast period owing to the surging demand in the international market. The cost of the item is much high in the international market as compared to the domestic market. As a result, the manufacturers need to look into the prices in order to gain a higher share in the global market. The rapid growth of the food & beverage and cosmetics industry in countries including Korea, China, and India is expected to have a positive impact on the industry growth over the forecast period.
The presence of major food & beverage manufacturers such as Tyson Foods, JBF, National Beef, and PepsiCo in the U.S. is anticipated to propel demand for alternative sweeteners, which in turn is expected to have a positive impact on the industry growth over the forecast period. Increasing occurrence of diabetes and obesity in the region owing to unhealthy dietary habits is expected to raise demand for the coconut sugar market over the forecast period.
European consumers are more concerned about the nutritional values associated with the food and beverage products. The age profile of Europe is expected to change drastically over the forecast period owing to increasing share of the population aged 65 years and above. Growing number of chronic diseases such as diabetes and heart diseases among the aged citizens is expected to increase demand for alternative sweeteners such as coconut sugar over the forecast period. In addition, growing demand for bio-based cosmetics in the region is anticipated to open new avenues for coconut sugar market growth over the next eight years.
The majority of the manufacturers are from the Philippines and Indonesia. Key players in the industry include Coco Sugar Indonesia, Bigtreefarms, Treelife, The Coconut Company Ltd, Saudi Food Ingredients Factory, Holos Integra, Celebes Coconut Corporation, Earth Circle Organics, Coconut SecretADON Exports, Los Ricos Compania Corporation, Ecobuddy, Franklin Baker, MADHAVA SWEETENERS, TARDO Filipinas Inc., Urmatt and SunOpta, Inc.
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Weaker consumer demand for lifestyle and wellbeing products due to social restrictions and lockdown policies shall have a negative impact on the demand patterns of cosmetic ingredients and certain categories of food additives. However, easing restrictions and public discourse about restarting economic activities in the consumer goods marketspace indicates that, the recovery of demand is imminent. The report will account for Covid19 as a key market contributor.