Coconut Water Market Size, Share & Trends Analysis Report By Packaging (Tetra Pack, Plastic Bottle), By Form (Powder, Liquid), By Distribution Channel (Online, Offline), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global coconut water market size was valued at USD 4.27 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 16.1% from 2020 to 2027. Over the past few years, people worldwide are increasingly adopting several healthy and nutritional drinks to maintain a healthy lifestyle. The excessive consumption of sugary and carbonated beverages causes several health issues, such as obesity, cardiovascular diseases, and diabetes, in almost all age groups ranging from kids to the working-class population. Therefore, coconut water acts as an alternative to carbonated beverages as it is considered to be beneficial for all the above conditions, especially for weight management.  

Coconut water is considered to be an excellent source of various nutritional ingredients, including fiber, minerals, vitamins, magnesium, calcium, sodium, and potassium. The aforementioned healthy ingredients make it the best rehydration drink, thereby increasing its adoption among gym-goers and athletes. Such health benefits are anticipated to boost the demand for coconut water across the globe.

The launch of new products is leading to the wider penetration of coconut water. In February 2019, TAJA Coconut launched non-GMO and sugar-free bottled coconut water. The company innovated a new patented technology and a cold-filtered three-part process, which is used to extract coconut water. The process helps preserve all the nutrients as it does not use heat, air, or additives while preparing the product. The final product has balanced flavors and is crystal clear in appearance.

Form Insights

Liquid coconut water accounted for the largest revenue share of more than 80.0% in 2019. Most manufacturers in the industry offer the product in the liquid form as they are ready for consumption and can be consumed on the go. In September 2019, Harmless Harvest launched coconut water under the brand name Protein & Coconut, which is available in three flavors, such as toasted coconut, chocolate, and vanilla spice. Along with coconut, it contains a protein blend derived from pea, pumpkin, and sunflower. The creamy beverage is considered to be an ideal snacking item as it is energy-rich and filling. 

The powder coconut water segment is expected to register the fastest CAGR of 16.5% from 2020 to 2027. The product is created by evaporating and freeze-drying the coconut water. Along with acting as a perfect alternative to fresh coconut water, it offers convenience to people staying beyond the tropical areas. It can be rehydrated by simply adding plain water or other flavored liquid to the powder and is mostly used while preparing specific recipes.

Distribution Channel Insights

The offline channel segment dominated the market and accounted for a revenue share of more than 80.0% in 2019. These stores offer various goods and often act as a one-stop solution for shopping for all everyday requirements. Thus, these stores are preferred while shopping for groceries and everyday edibles. Along with this, the cost of operation and selling overheads is quite low. The large volume sales also lead to better economies of large-scale operation.

The online channel segment is expected to register the fastest CAGR of 17.0% from 2020 to 2027. The online channel has evolved as the new preferred channel for shopping among generations Y, Z, and Alpha. The preference is a result of the 24/7 availability of these stores. The ease of shopping it offers to its consumers relaxing back at home is one of the most lucrative aspects of the channel.

Packaging Insights

Tetra pack led the market and accounted for a revenue share of more than 40.0% in 2019. The packaging offers a long life to the liquid packaged inside, which helps protect the content from contamination by microbes and bacteria. It keeps the product safe for months. The tetra pack is made of multiple layers. Each layer is made of different components, including paperboard made from wood, polyethylene, which is a kind of polymer, and aluminum. The choice of the component also helps in keeping the packaging light.

The tetra pack segment is also expected to witness the fastest growth from 2020 to 2027. Another reason leading to the rapid adoption of the packaging is its recyclability. Furthermore, the manufacturers have been using 100% FSC wood to make it sustainable. Its paper-based packaging makes it extremely easy to open and handle and gives it a strong environmental profile.

Regional Insights

Central and South America held the largest revenue share of over 25.0% in 2019. Coconut water is a part of the everyday diet in Brazil and other neighboring countries. The huge demand has led to the availability of the product in almost every shop. Along with its consumption as a nutritious health drink, the drink is being largely used for curing a hangover. One of the most popular drinks made using coconut water and is considered healthy for curing a hangover is agua de coco.

Europe is expected to expand at the fastest CAGR of 17.6% from 2020 to 2027. The rising demand for healthy beverages among millennials has led to multiple companies launching their products in European countries. In August 2019, Vita Coco launched sparkling coconut waters in the U.K. The product is focused on providing a healthy substitute for sugary beverages. The product is available in flavors including pineapple and passion fruit and lemon and lime. A 330 mL can contain 3.7g of natural sugar and 20 calories and is priced at GBP 1.69. It is readily available in Tesco, Sainsbury's, Morrisons, Co-op, Whole Foods Market, and Bestway.

Key Companies & Market Share Insights

The market is in a state of rapid growth, and players can constantly strategize to leverage growth. For instance, in August 2020, Elegance Brands, Inc. entered into a strategic partnership with KC Distributing. As part of this agreement, KC Distributing will exclusively sell Elegance’s products, including coconut water, for the following twelve months. To help increase brand penetration, KC Distributing will rebrand its delivery trucks with Gorilla Hemp. Elegance Brands, Inc. is set to launch its coconut water by October 2020. Coconut water will be offered in the canned cocktail form in four fruit flavors. Some prominent players in the global coconut water market include:  

• All Market Inc.

• Naked Juice Company

• New Age Beverages Corporation

• Celebes Coconut Corporation

• Elegance Brands, Inc.

• Vaivai SAS

• Elegance Brands, Inc.

• C2O Pure Coconut Water, LLC

• PepsiCo (O.N.E. Coconut Water)

• The Coca-Cola Company (ZICO)

• Harmless Harvest

• COCOZIA

Coconut Water Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global coconut water market report on the basis of packaging, form, distribution channel, and region:

• Packaging Outlook (Revenue, USD Million, 2016 - 2027)

  • Tetra Pack

  • Plastic Bottle

  • Others

• Form Outlook (Revenue, USD Million, 2016 - 2027)

  • Powder

  • Liquid

• Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)

  • Online

  • Offline

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa