Global Coconut Products Market Outlook, 2029

Global Coconut Products Market Outlook, 2029

Coconuts, often referred to as the ""tree of life,"" are a versatile and nutrient-rich source that has been an integral part of various cultures for centuries. Beyond their delicious water and meat, coconuts offer a wide range of products that have gained popularity for their culinary, beauty, and health benefits. In recent years, the adoption of coconut products has witnessed a remarkable surge, fueled by growing awareness of their versatile applications and associated health benefits. This tropical fruit, once confined to its native regions, has now become a global sensation, with coconut-based products finding their way into kitchens, beauty routines, and health-conscious lifestyles worldwide. The food industry's response to consumer demand has led to an influx of innovative coconut-based products. From coconut-based ice creams to savory snacks infused with coconut flavors, manufacturers continually introduce new and exciting options, expanding the realm of coconut consumption. These creative products cater to evolving consumer tastes and preferences, contributing to the ongoing popularity of coconut-based items. Coconut products have seamlessly integrated into diverse culinary traditions, creating a global fusion of flavors. The use of coconut milk in Western cuisines, coconut oil in Mediterranean dishes, and coconut flour in gluten-free baking reflects a cross-cultural appreciation for the versatility and taste that coconut products bring to the table. This culinary fusion contributes to the widespread adoption of coconut products as a unifying ingredient in global kitchens. The rise of social media platforms has played a crucial role in popularizing coconut products. Food influencers, chefs, and wellness advocates showcase creative recipes, beauty routines, and lifestyle choices incorporating coconut-based items. This exposure has significantly contributed to the social appeal of coconut products, encouraging consumers to try new recipes, beauty hacks, and wellness practices featuring these versatile and beneficial ingredients. Educational efforts regarding the nutritional benefits of coconut products have empowered consumers to make informed choices. Awareness campaigns, nutritional workshops, and online resources highlight the positive impact of incorporating coconut-based items into daily routines. As individuals become more informed about the health benefits, they are more likely to include coconut products as a conscious part of their diets and lifestyles. The convenience of accessing coconut products in various forms, from coconut water in Tetra Paks to coconut oil in user-friendly containers, has contributed to increased consumption. The ease with which consumers can incorporate coconut into their daily lives, without the need for labor-intensive preparation have made these products accessible to a wider audience, further fueling their consumption.

According to the research report, “Global Coconut Products Market Outlook, 2028” published by Bonafide Research, the market is anticipated to cross USD 30 Billion by 2029, increasing from USD 20.17 Billion in 2023. The market is expected to grow with 7.70% CAGR by 2024-29. Consumers are increasingly prioritizing health and wellness, seeking natural and nutrient-dense alternatives to traditional ingredients. Coconut products, such as coconut oil, coconut water, and coconut flour, have gained traction due to their unique nutritional profiles. Rich in medium-chain triglycerides (MCTs), essential fatty acids, and various vitamins and minerals, coconuts are now recognized for their potential to support heart health, boost metabolism, and enhance overall well-being. With the rise of gluten-free and plant-based diets, coconut products have found favor among those seeking alternative ingredients. Coconut flour, coconut milk, and coconut oil serve as excellent substitutes for their counterparts in traditional recipes, allowing individuals with dietary restrictions or preferences to enjoy a diverse range of dishes without compromising on taste or texture. The sustainability and ethical sourcing of products have become pivotal factors in consumer choices. Coconuts are known for their eco-friendly cultivation practices, requiring minimal pesticides and chemical inputs. Additionally, the entire coconut, from husk to water, is utilized, minimizing waste and contributing to a more sustainable food production system. This aligns with the values of environmentally conscious consumers who prioritize ethical and sustainable practices. Coconut products have become key ingredients in a variety of global cuisines, contributing to the popularity of fusion dishes. Coconut milk, with its creamy texture and rich flavor, is a staple in Southeast Asian curries, Caribbean stews, and South American desserts. This culinary diversity has encouraged experimentation in kitchens worldwide, sparking interest in the broader use of coconut-based products. The beauty industry has also embraced coconut-based ingredients for their natural and nourishing properties. Coconut oil is widely used in skincare and haircare routines, valued for its moisturizing and anti-inflammatory effects. This adoption in the beauty sector has further propelled the overall popularity of coconut products, as consumers recognize their holistic benefits beyond the kitchen. The market has responded to the growing demand for coconut products with a surge in innovative offerings. From coconut sugar and coconut-based snacks to coconut-based beverages and spreads, manufacturers are continually introducing new products that cater to diverse consumer preferences and dietary needs. This innovation has played a crucial role in sustaining and expanding the adoption of coconut products.

Market Drivers
• Health and Wellness Awareness: The increasing global awareness of health and wellness is a significant driver for the coconut products market. Consumers are seeking healthier alternatives in their diets, leading to a growing demand for coconut-based products known for their nutritional benefits. Coconut oil, coconut water, and coconut-based snacks are embraced as functional foods, thanks to attributes like medium-chain triglycerides (MCTs), which are associated with improved metabolism and heart health. The perceived health benefits of coconut products have become a primary driver, with consumers incorporating them into their daily routines as a conscious choice for better nutrition.
• Sustainability and Ethical Consumerism: The rise of sustainability and ethical consumerism has driven the popularity of coconut products. Coconuts are considered a sustainable crop, requiring minimal inputs and contributing to biodiversity. Additionally, coconut trees help prevent soil erosion and have a low environmental impact. As consumers become more environmentally conscious, the demand for products with eco-friendly and ethical sourcing practices has increased. The inherent sustainability of coconuts, coupled with their versatile applications, positions coconut products as a choice aligned with ethical and environmental values.

Market Challenges
• Supply Chain Vulnerabilities: The coconut industry faces challenges related to supply chain vulnerabilities. Climate change, natural disasters, and fluctuating weather patterns can affect coconut production, leading to supply shortages and increased prices. Issues such as pest infestations and diseases can also impact coconut yields. Given the global demand for coconut products, any disruption in the supply chain can have significant consequences for manufacturers and consumers alike. Ensuring a resilient and stable supply chain becomes crucial to address these challenges.
• Quality Control and Standards: Maintaining consistent quality standards across the global coconut product market can be challenging. Variability in growing conditions, cultivation practices, and processing methods can result in differences in the quality of coconut products. Ensuring quality control throughout the production chain is essential to meet consumer expectations and regulatory standards. Establishing and adhering to industry-wide quality benchmarks becomes crucial to overcome challenges related to inconsistent product quality and to build consumer trust.

Market Trends
• Innovations in Product Offerings: The coconut products market is witnessing a trend towards continuous innovation in product offerings. Manufacturers are introducing new and diverse coconut-based products, ranging from coconut-based beverages to innovative snacks and beauty products. This trend is driven by consumer demand for unique and convenient products that fit into various aspects of their lives. As a result, the market is evolving with the introduction of creative and novel coconut-based items, expanding the range of options available to consumers.
• Clean Label and Transparency: There is a growing consumer preference for clean label products, which has led to increased scrutiny of ingredient lists and production methods. Transparency in the sourcing and processing of coconut products is becoming a prominent trend. Consumers are seeking products with minimal additives, preservatives, and sustainable sourcing practices. Brands that emphasize transparency and adhere to clean label principles are likely to gain consumer trust and thrive in the competitive coconut products market.

Covid-19 Impacts

The coconut products industry faced significant disruptions in its supply chain due to lockdowns, restrictions on movement, and disruptions in transportation. Coconut-producing regions experienced challenges in harvesting and processing coconuts, leading to delays in the production of coconut-based products. This, in turn, affected the availability of coconut oil, coconut water, and other coconut-derived items in the market. The labor-intensive nature of coconut farming and processing meant that the industry had to grapple with labor shortages. Social distancing measures and lockdowns impacted the availability of workers, hindering harvesting and processing activities. Ensuring the safety of the workforce became a priority, leading to operational adjustments and, in some cases, reduced production capacities. The demand for certain coconut products experienced fluctuations during the pandemic. While there was an initial surge in demand for pantry staples, including coconut oil, as consumers stocked up on essential items, demand patterns shifted as lockdowns persisted. The closure of foodservice establishments, such as restaurants and cafes, led to a decline in the demand for coconut-based ingredients used in the hospitality sector. Coconut-producing countries heavily reliant on exports faced challenges in international trade. Shipping disruptions, logistical issues, and changes in consumer demand patterns in importing countries impacted the export of coconut products. Fluctuating currencies and economic uncertainties also influenced trade dynamics within the global coconut industry. With lockdowns and social distancing measures in place, there was a noticeable shift towards online shopping. E-commerce platforms became crucial channels for the distribution of coconut products, allowing consumers to access these items without physically visiting stores. This shift emphasized the importance of robust online distribution channels for coconut product manufacturers. The pandemic heightened consumer awareness of health and immunity, leading to an increased interest in products perceived as natural and beneficial for well-being. Coconut products, known for their nutritional content and potential health benefits, saw continued demand as consumers sought immune-boosting food and beverage options.

Based on the product type, coconut oil accounted for the largest revenue share in 2023, as coconut oil has a high content of healthy saturated fats that can boost fat burning and replenish energy levels in the body.

Coconut oil segment is the dominant product type in the coconut market, favored for its versatility and health benefits. Cooking uses of coconut oil are widespread due to its unique flavor and high smoke point; health and beauty products containing it feature moisturizing qualities as well. Growth in this segment is driven by an increasing interest in plant-based, natural products in both food service and personal care industries. This growth can be attributed to its high saturated fat content which can burn the fats within the body and increase the energy level of the body. It also increases the good cholesterols across the human body which helps in reducing the risks of heart diseases. Moreover, its application on hair helps them to increase their strength and shiny appearance. Such products find applications in the personal care industry, owing to other properties like antibacterial, anti-inflammatory, and antioxidant. This oil can also be used for massaging infants to strengthen their bones. It is being mixed with other fragrant oils to develop massage oil which acts as a stress reliever to the human body. But, due to higher fat content, this product is expected to face competitive loss owing to other substitutes like soy and almond oil. Furthermore, refined coconut oil is used in the manufacturing of biscuits, chocolates, and other confectionery items, ice cream, pharmaceutical products, and paints. On the other hand, coconut milk is identified as the third largest segment in the coconut market. Rise of veganism, growing demand for a plant-based substitute to dairy products, and the increased awareness about the health benefits of coconut milk drive the milk market.

The liquid form of coconut, primarily in the form of coconut water and coconut milk, is utilized more driven by both cultural practices and nutritional considerations.

Often referred to as nature's sports drink, coconut water is a clear liquid found inside young green coconuts. It is naturally hydrating and rich in electrolytes, including potassium and magnesium. Due to its refreshing taste and replenishing properties, coconut water is widely consumed as a hydrating beverage, especially in tropical regions and countries with hot climates. Coconut Milk, this creamy liquid is extracted from grated coconut meat. Coconut milk is a versatile ingredient used in a wide range of culinary applications. It adds a rich and distinct flavor to both savory and sweet dishes, making it a popular choice in various cuisines, especially in Southeast Asian, Indian, and Caribbean cooking. Coconut milk is commonly used in curries, soups, desserts, and beverages. As a dairy-free and vegan alternative, coconut milk has gained popularity among individuals with lactose intolerance, dairy allergies, or those following a plant-based diet. It can be used in cooking and baking as a substitute for cow's milk, providing a creamy texture and a unique flavor profile. Apart from being a beverage, coconut water has gained popularity in the beauty and wellness industry. Its hydrating properties make it a common ingredient in skincare products, hair treatments, and natural health beverages. Some consumers also drink coconut water for its potential benefits to skin health and hydration. The mild and slightly sweet taste of coconut water and the rich, creamy flavor of coconut milk are well-received by consumers, contributing to their widespread usage. The current trends in health and wellness clean eating, and plant-based diets have boosted the popularity of coconut-based liquids. Consumers are actively seeking alternatives to traditional beverages and cooking ingredients, and coconut water and milk align with these preferences. Often sold in ready-to-drink packaging, coconut water is a convenient and portable beverage option. Its natural sweetness and refreshing nature make it an appealing choice for those looking for a convenient and healthy drink.

The cosmetics application segment accounted for the largest market share as various skin and hair care products use coconut oil or coconut milk as one of the base ingredients.

Coconut oil contains antioxidants and has anti-inflammatory properties. These qualities can help soothe irritated skin and contribute to a healthier complexion. In skincare formulations, coconut oil is often utilized for its potential to reduce inflammation and protect the skin from oxidative stress. Coconut oil is widely recognized for its benefits in hair care. It can penetrate the hair shaft, providing nourishment and helping to reduce protein loss. As a result, coconut oil is a common ingredient in hair conditioners, masks, and serums, contributing to smoother, shinier, and more manageable hair. It is also believed to promote scalp health. Beyond coconut oil, other coconut-derived ingredients, such as coconut water, coconut milk, and coconut extract, are versatile components in cosmetic formulations. They add hydration, fragrance, and unique textures to various products, including facial cleansers, toners, and masks. Coconut shell powder, obtained from ground coconut shells, is used as a natural exfoliate in skincare products. Its gentle abrasive properties help remove dead skin cells, promoting a smoother complexion. This natural exfoliation is often incorporated into facial scrubs and body polishes. The pleasant and tropical aroma of coconut is widely associated with relaxation and vacation. Coconut fragrance is often added to cosmetic products, including perfumes, body sprays, and lotions, contributing to a sensory experience those consumers find appealing. As the clean beauty movement gains momentum, consumers are seeking cosmetic products with minimal, natural ingredients. Coconut-derived ingredients align with this trend, offering a clean and natural alternative to synthetic compounds. The perceived purity and simplicity of coconut-based cosmetics contribute to their popularity in the clean beauty sector.

Hypermarkets and supermarkets serve as one-stop shopping destinations, offering a diverse array of products, including food items, cosmetics, and household essentials.

The coconut products market, encompassing a range of items from coconut oil and coconut water to coconut-based snacks and beauty products, benefits significantly from the extensive shelf space and varied product categories available in these retail giants. Consumers appreciate the convenience of finding a comprehensive selection of coconut products under one roof, facilitating easy comparison and selection. The visibility and accessibility of coconut products in hypermarkets and supermarkets contribute to their leading position. Endcap displays, promotional offers, and dedicated sections for natural and organic products often highlight coconut-based items, catching the attention of shoppers and encouraging impulse purchases. The sheer volume of foot traffic in these retail spaces enhances the exposure of coconut products to a broad and diverse consumer base. Moreover, consumer trust in the reliability and quality assurance offered by well-established hypermarket and supermarket chains plays a pivotal role. These retailers often implement stringent quality control measures and source products from reputable manufacturers, instilling confidence in consumers regarding the authenticity and safety of the coconut products available. The ease of navigating these large retail spaces, coupled with the availability of multiple brands and product variants, empowers consumers to make informed choices based on factors such as price, brand reputation, and specific product attributes. Additionally, the hypermarket/supermarket distribution channel is often a preferred choice for bulk purchases and regular household shopping. Coconut products, being versatile and commonly used in kitchens, find a natural place in the shopping carts of consumers who frequent these retail formats for their routine grocery needs. The convenience of combining coconut-based food products, beverages, and beauty items in a single shopping trip contributes to the channel's dominance.

Based on the stage, mature coconuts, also known as brown coconuts, are highly used in various industries and culinary applications due to their versatile composition and numerous beneficial properties.

Mature coconuts have a substantial amount of coconut meat, the white flesh inside the coconut. This meat is rich in healthy fats, particularly saturated fats such as lauric acid. The high oil content in mature coconuts makes them an excellent source for extracting coconut oil, a widely utilized ingredient in cooking, baking, and skincare. The meat of mature coconuts is thick and has a firm texture, making it ideal for a wide range of culinary applications. It is commonly grated or shredded and used in both sweet and savory dishes. Coconut milk, derived from the grated meat, is a key ingredient in various cuisines, adding a rich and distinctive flavor to curries, soups, and desserts. The distinct texture and flavor of mature coconut meat make it a popular choice for desserts and confectionery. From coconut flakes in cakes and cookies to coconut shreds on top of puddings and ice creams, mature coconut adds a delightful sweetness and chewiness to a variety of sweet treats. Mature coconuts are a natural source of sweetness. Coconut sugar, derived from the sap of coconut flower buds, is an alternative sweetener that is gaining popularity as a healthier option compared to refined sugars. The natural sweetness of mature coconuts makes them a valuable ingredient in the production of coconut sugar. While young coconuts are often preferred for fresh coconut water, mature coconuts are also used to produce bottled and packaged coconut water. The water extracted from mature coconuts tends to have a slightly different taste and is often processed to extend its shelf life. The oil extracted from mature coconuts is a key ingredient in many beauty and skincare products. Coconut oil is renowned for its moisturizing and nourishing properties, making it a common component in lotions, creams, haircare products, and natural skincare remedies. Mature coconuts have a longer shelf life compared to young coconuts. This characteristic makes them more suitable for transportation and storage, ensuring that mature coconut products remain available to consumers for an extended period.

The Asia Pacific region accounted for the largest market share, as the region contributes significantly to consumption as the major plantations of coconut are found in countries like Indonesia, the Philippines, India, Sri Lanka, and Vietnam.

The major market growth is attributable to the increasing trade activities of coconut derivatives between Asian countries and other regions, mainly Europe and North America. The presence of leading manufacturers such as Axelum Resources Corp., Celebes Coconut Corporation, and PT Global is expected to boost the market growth in the region. Key reasons behind its dominance include ample availability of coconuts; Indonesia, Philippines and India rank amongst the leading producers globally of this fruit. Traditional uses in local diets as well as established farming and processing industries that utilize this natural product significantly contribute to this region's high market share. Market dynamics are being determined by an increase in global demand for natural food products such as coconut oil, milk, water and flour - with Asia Pacific at the forefront of exporting this variety. Furthermore, global health awareness as well as vegan diet popularity has further spurred demand for coconut-based products. An increased emphasis on health and wellness as well as rising popularity of plant-based products are expected to drive further growth, while advancements in production and processing technologies will likely further expand quality and variety available both domestically and for export. Many countries in the Asia-Pacific region adhere to traditional methods of coconut processing and extraction. These methods often involve hand-harvesting and traditional techniques for extracting coconut oil and milk. This emphasis on traditional methods adds a perceived authenticity to the products, resonating well with consumers seeking natural and minimally processed offerings.

The coconut products market is characterized by a diverse range of companies, each contributing uniquely to the industry's landscape. The Coconut Company (UK) Ltd. and Vita Coco are recognized for their focus on health-conscious consumers, offering a range of organic and natural coconut products that cater to the growing demand for healthy and sustainable food options. Marico Ltd. and Nestlé S.A. have a significant impact on the market through their extensive distribution networks and broad product portfolios. Their strategic positioning enables them to cater to a wide consumer base, influencing global consumption patterns. Enature Organic Products and Ayam Sarl emphasize organic and ethically sourced coconut products, aligning with consumer trends towards environmental sustainability and ethical sourcing. Renuka Foods PLC and S & P Industries Sdn Bhd have established strong market presences in Asia, capitalizing on the regional abundance of coconuts and focusing on export markets.
• In May 2022, Danone announced the launch of Alpro, its second dairy-free brand in China after Vega, to tap the emerging plant-based food market. The brand offers coconut milk, among other products.
• In January 2022, Vita Coco partnered with Lyft to offer discounts on rides home and hydrating coconut water. They claimed that the partnership is to keep consumers hydrated.
• In February 2021, Los Angeles-based growth-equity investor PowerPlant Ventures announced its acquisition of ZICO coconut water from The Coca-Cola Company.
• In 2021, McCormick & Company acquired FONA International, a manufacturer of clean label flavors, including organic coconut flavors, for $710 million. This expands McCormick's flavor solutions business.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Coconut Products market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• Coconut milk & cream
• Coconut oil
• Coconut water
• Coconut desiccated /flacks /shredded
• Other

By Form
• Liquid
• Solid

By Application
• Food / Beverages
• Cosmetics
• Others

By Distribution Channel
• Hypermarket/supermarket
• Conventional store
• Specialty store
• Online retail

By Stage
• Mature
• Young

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Coconut Products industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.***Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation.