Global Organic Coconut Flour Market - 2024-2031

Global Organic Coconut Flour Market - 2024-2031

Global Organic Coconut Flour Market reached US$ 0.49 billion in 2023 and is expected to reach US$1.3 billion by 2031, growing with a CAGR of 12.9 % during the forecast period 2024-2031.

The global organic coconut flour market is growing rapidly, driven by rising consumer demand for healthier, gluten-free, and plant-based food options. With its high fiber content and gluten-free properties, coconut flour has become a popular choice among those following gluten-free, paleo, keto, and vegan diets. As more consumers prioritize health and sustainability, the demand for organic coconut flour is expanding, with its versatility in baking, cooking, and even as a thickening agent further boosting its appeal.

The increasing adoption of plant-based and gluten-free diets, along with a growing focus on sustainability, ensures the demand will remain strong. Innovations in product offerings and an expanding distribution network will make organic coconut flour more accessible to consumers worldwide, reinforcing its position as a key ingredient in the health-conscious food sector, and expanding the market reach of the global market.

The growing demand for organic products is a key factor driving the dominance of the Asia-Pacific in the global organic coconut flour market. For instance, India produced approximately 3.6 million metric tons (MT) of certified organic products in 2023-24, according to the Agricultural and Processed Food Products Export Development Authority (APEDA), reflecting a significant increase in consumer preference for organic food, including coconut-based products like coconut flour.

Dynamics

Rise in Popularity of Special Diets

The rising popularity of special diets like vegan, gluten-free, and low-carb is driving the global demand for organic coconut flour, favored for its high fiber and gluten-free properties. The National Center for Biotechnology Information NCBI reports about 88 million vegans worldwide, increasing the demand for plant-based ingredients like coconut flour. This shows that there is a notable shift towards healthier food choices.

Consumer interest in organic products has surged, with the USDA's 2021 data showing organic retail sales accounted for 5.5% of total food sales in US, generating nearly $11 billion. The Organic Trade Association reported that traditional grocery stores made up 56% of organic food sales in 2020, indicating strong retail growth. These trends highlight a strong market shift towards organic, plant-based ingredients like coconut flour, which aligns with the rising health-conscious and environmentally aware consumer base.

Increasing Awareness About Allergies

Increasing awareness about allergies and gluten intolerance is driving the demand for alternative products like organic coconut flour. Gluten intolerance affects a significant portion of the population, and the rise in such conditions has led to a growing preference for gluten-free and allergen-free food options. In US, around 6% of the population experiences some form of gluten intolerance, which is more widespread than celiac disease, affecting about 1% of the population.

Celiac disease is an autoimmune disorder triggered by gluten, and its prevalence varies by region. Nations in North Africa have some of the highest rates of celiac disease, with Finland also showing high levels of the condition. The World Population Review and the Celiac Disease Foundation highlight that approximately 1 in 100 people globally suffer from celiac disease, underscoring the need for gluten-free alternatives.

Organic coconut flour has emerged as a popular substitute for traditional wheat flour, especially among those with gluten sensitivities or those looking for healthier options. As the awareness of gluten intolerance and allergies increases, the demand for products like organic coconut flour, which are naturally gluten-free, is expected to continue growing globally. This trend is not only fueled by those with diagnosed conditions but also by people seeking healthier diets or adopting gluten-free lifestyles.

High Costs of Organic Coconut Flour

The high cost of organic coconut flour is primarily due to the expense of organic farming practices, including certification, lower yields, and labor-intensive production methods. Organic farming requires strict adherence to regulations that prohibit synthetic pesticides and fertilizers, leading to higher operational costs. Additionally, organic coconut farms often have lower productivity compared to conventional farms, which increases the cost per unit of flour.

Processing organic coconuts into flour also involves time-consuming steps such as drying and grinding, further raising production costs. These factors, coupled with the premium nature of organic products, contribute to the high retail prices of coconut flour. Moreover, the supply chain and logistical challenges associated with sourcing organic coconuts from tropical regions further increase costs.

Segment Analysis

The global organic coconut flour market is segmented based on type, product, distribution channel, application, end-user and region.

Wide Use of Organic Coconut Flour in Baking Segment

The global organic coconut flour market is segmented based on appliaction into baking, snacks, dairy alternatives, and others. The baking application holds a dominant position in the global organic coconut flour market due to its versatility and health benefits. Organic coconut flour is widely used in the preparation of gluten-free, keto, paleo, and low-carb baked goods, making it a favored ingredient among health-conscious consumers.

Its high fiber content, low carbohydrate count, and natural sweetness make it an ideal substitute for traditional flours in a variety of baked products, including bread, cakes, cookies, and muffins. As the demand for gluten-free and clean-label products grows, organic coconut flour's ability to cater to these needs enhances its prominence in the baking sector to produce high-quality baked goods.

Geographical Penetration

High Availability of the Raw Materials in Asia-Pacific

Asia-Pacific particularly India, holds a dominant position in the global organic coconut flour market, supported by key factors highlighted in the India Brand Equity Foundation (IBEF) report. As the world’s largest producer of coconuts, India contributes significantly to the global supply of raw materials needed for value-added products like organic coconut flour. In 2022-23, India produced over 20,535 million coconuts across 2,277.18 thousand hectares, with an impressive average yield of 9,018 nuts per hectare.

The high productivity ensures a reliable and steady supply of quality coconuts for processing into products such as coconut flour. Additionally, the Indian government’s focus on expanding coconut cultivation and establishing processing units, including a US$ 10 million allocation, provides a solid foundation for growth in the organic coconut products market. The substantial rise in coconut exports, including a 41% increase in 2022, reflects the growing demand for domestic and international coconut-based products.

Key coconut-producing states in India, such as Kerala, Karnataka, Tamil Nadu, and Andhra Pradesh, which together account for over 89% of the country’s coconut area and production, ensure a continuous supply of high-quality coconuts. As noted by the India Brand Equity Foundation, these factors position the Asia-Pacific as the dominant force in the organic coconut flour market, meeting increasing global consumer demand for organic, sustainable products.

Competitive Landscape

The major global players in the market include Laurico Nutraceuticals, Metshu Exports (Pvt) Ltd., Dhatu Organics & Naturals, Phildesco Inc, Royce Food Corporation, Celebes Coconut Corporation, Bob’s Red Mill Natural Foods, Viva Naturals, Kaira Organic World, BATA FOOD.

Sustainability Analysis

The global organic coconut flour market is driven by growing consumer demand for healthier, gluten-free alternatives, and its sustainability is largely influenced by the practices used in coconut farming. Organic coconut farming, which avoids synthetic pesticides and fertilizers, promotes biodiversity and healthier soil. However, it still requires significant water and can contribute to deforestation in certain regions.

Sustainable packaging and local sourcing can help mitigate environmental impacts, while regenerative agricultural practices are emerging as key strategies to further enhance sustainability by improving soil health, biodiversity, and carbon sequestration. As demand for organic products grows, with continued efforts to improve environmental and social practices, the market's sustainability can be strengthened, benefiting both people and the planet.

By Type
• Fine Coconut Flour
• Coarse Coconut Flour
• Other

By Distribution Channel
• Supermarkets and Hypermarkets
• Convenience Stores
• Specialty Stores
• Online Retail

By Application
• Baking
• Snacks
• Dairy Alternatives
• Other

By End-User
• Households
• Commercial
Bakeries
Food Manufacturers
Other

By Region
• North America
US
Canada
Mexico
• Europe
Germany
UK
France
Italy
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In August 2024, Prime Minister Modi launched 109 crop varieties, including two high-yielding coconut varieties, Kalpa Suvarna and Kalpa Shatabdi, and two disease-resistant cocoa varieties, VTL CH1 and VTL CH2, developed by CPCRI.
• In March 2024, South Canara Coconut Farmers’ Producer Company Ltd. revealed its plans to introduce a range of new products, including coconut milkshakes, sprout desserts, and ice cream, all under the brand name Shreephal.
• In June 2023, Flour Mills, North America’s oldest continuously operating mill, launched a new gluten-free product line under its brand, following the acquisition of the Full of Beans Gluten Free Brand in January 2023.

Why Purchase the Report?
• To visualize the global organic coconut flour market segmentation based on type, distribution channel, application, end-user, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous organic coconut flour market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global organic coconut flour market report would provide approximately 70 tables, 63 figures and 195 pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies