USA Desiccated Coconut Powder Market Outlook to 2028

USA Desiccated Coconut Powder Market Overview

The USA Desiccated Coconut Powder Market has experienced notable growth, this is reflected by Global Desiccated Coconut Powder Market reaching a valuation of USD 4.9 billion in 2023. This growth is fueled by increasing consumer demand for plant-based and natural food ingredients.

Major players in the USA Desiccated Coconut Powder Market include Celebes Coconut Corporation, Mc Cormick & Company, Barry Callebaut, Fiesta Ingredients Australia Pty Ltd, and Cocomi. These companies have established themselves through strong distribution networks, high-quality product offerings, and continuous innovation.

In June 2024, Mc Cormick released its 2023 Purpose-led Performance (PLP) Progress Report, highlighting the company's sustainability achievements and commitments subjected to recognition from the Science Based Targets initiative (SBTi) for Mc Cormick's Net-Zero by 2050 objective.

USA Desiccated Coconut Powder Current Market Analysis

In 2023, the increasing adoption of healthy lifestyles significantly drove the demand for desiccated coconut powder. Consumers are shifting towards natural and organic food ingredients. The rise of the clean eating movement has popularized natural, minimally processed foods. Desiccated coconut powder and other organic, plant-based ingredients fit well with this trend toward simpler, healthier eating.

In 2023, the global price of raw coconut increased due to supply chain disruptions caused by climate change and natural disasters in key coconut-producing regions. To mitigate this challenge, companies are exploring alternative sourcing strategies and investing in sustainable coconut farming practices to ensure a steady supply of raw materials.

The Western region leads the market largely due to California's significant contribution. The region's strong demand for organic and health-focused food products followed by consumer awareness and preference for natural and organic food products supports this dominance. California’s favorable business environment and access to raw materials contribute to its leading position.

USA Desiccated Coconut Powder Market Segmentation

By Product Type: USA Desiccated Coconut Powder Market is segmented by Product Type into fine grade and medium grade. In 2023, fine grade desiccated coconut holds a significant market share driven by its widespread use in bakery and confectionery products. The fine texture of this grade makes it ideal for use in delicate pastries and desserts, enhancing their flavor and texture.

By Application: USA Desiccated Coconut Powder Market is segmented by Application into Bakery Products, Confectionery Products, and Culinary Applications. In 2023, bakery Products sub-segment leads the market which is supported by significant increase in the consumption of baked goods, fueled by a consumer shift towards healthier and more natural food options.

By Region: USA Desiccated Coconut Powder Market is segmented by Region into North, South, East, and West. In 2023, the Western region leads the market largely due to California's significant contribution. The region's strong demand for organic and health-focused food products followed by consumer awareness and preference for natural and organic food products supports this dominance.

USA Desiccated Coconut Powder Market Competitive Landscape

Company Name

Establishment Year

Headquarters

Celebes Coconut Corporation

1986

Philippines

Mc Cormick & Company

1889

Maryland, USA

Barry Callebaut

1996

Zurich, Switzerland

Fiesta Ingredients Australia Pty Ltd

1992

Sydney, Australia

Cocomi

1992

Sri Lanka

Celebes Coconut Corporation: Celebes Coconut Corporation is a trusted manufacturer and exporter of organic certified coconut products, including desiccated coconut, from the Philippines. The company's coconut products are organic certified, fair trade, kosher, and halal certified. The company is sensitive in terms of maintaining a safe and healthy environment to avoid harmful effects on the ecosystem.

Mc Cormick & Company: Maryland, the company has grown to become the largest producer of spices and related food products worldwide, based on revenue. In 2024, it recently published its 2023 Purpose-led Performance (PLP) Report, highlighting the company's progress towards its sustainability goals and commitments.

Barry Callebaut: Barry Callebaut was established in 1996 through the merger of the Belgian chocolate producer Callebaut and the French chocolate company Cacao Barry, the company is a leading manufacturer of high-quality chocolate and cocoa products, including desiccated coconut powder. In February 2024, Barry Callebaut CEO Peter Feld revealed in an interview that the company is preparing to cut around 2500 jobs in USA.

USA Desiccated Coconut Powder Market Industry Analysis

USA Desiccated Coconut Powder Market Growth Drivers

Increasing Consumer Demand for Plant-Based Ingredients: The demand for plant-based food products has seen a significant rise in the USA, with the plant-based food market reaching $8.1 billion in 2023. This growth reflects a shift in consumer preferences towards healthier and more sustainable food options.

Expanding Bakery and Confectionery Industry: Economic Impact Study conducted by the American Bakers Association, the baking industry contributed about $533.18 billion in economic output in 2023, which represents 2.01% of the U.S. gross domestic product (GDP). the industry's production and distribution linkages impact firms in all 524 sectors of the U.S. economy, supporting a total of 2.18 million American jobs.

Rising Health Awareness and Dietary Preferences: The health-conscious trend is driving the demand for desiccated coconut powder in various food and beverage applications. With a growing emphasis on health and wellness, consumers are increasingly opting for natural and nutrient-rich food products.

USA Desiccated Coconut Powder Market Challenges

Market Saturation: The market for desiccated coconut powder is highly saturated, with many established players competing for market share. Saturation can lead to mergers and acquisitions as companies seek to gain market share and economies of scale. This can reduce the number of players in the market over time.

Distribution Channel Challenges: Managing relationships with multiple distribution channels, including direct sales, e-commerce, and retail stores, can lead to significant channel conflicts in the USA market. In the USA, retail stores, e-commerce platforms, and direct sales channels often have different pricing strategies for desiccated coconut powder leading to customer confusion and conflicts between the channels.

Competition from Substitutes: The availability of substitutes such as fresh coconut, Brazil nuts, and macadamia nuts, which offer similar nutty flavors and textures, acts as a key restraint for the market. These substitutes can be used in various applications, including baking, confectionery, and dairy products, which are also key markets for desiccated coconut powder.

USA Desiccated Coconut Powder Market Government Initiatives

Trade Agreements: The US government has been negotiating trade agreements to ease import tariffs on agricultural products, including coconuts. USDA works with the Office of the U.S. Trade Representative to establish international standards and rules to improve accountability and predictability for agricultural trade.

National Organic Program (2023): The NOP ensures that organic products meet specific standards for production, handling, labeling, and enforcement, thereby protecting consumer confidence in the integrity of the USDA Organic Seal. Strengthening Organic Enforcement (SOE) Final Rule finalized in 2022 aims to improve transparency and supply chain traceability to deter and detect organic fraud.

Healthy Food Financing Initiative (2010): This initiative aims to improve access to healthy food options in underserved areas. In 2023, the USDA announced the expansion of the HFFI program, including the launch of the HFFI Local and Regional Healthy Food Financing Partnerships Program, which will invest $30 million.

USA Desiccated Coconut Powder Market Future Outlook

By 2028, the USA Desiccated Coconut Powder Market is showing advancing growth fueled by the rising trend of veganism, increasing awareness of the health benefits associated with coconut products, and expanding applications in food and beverage industries.

Future Market Trends

Expansion in Food and Beverage Applications: This tropical fruit, once confined to its native regions, has now become a global sensation and will continue to leap forward, with coconut-based products finding their way into numerous zones including kitchens, beauty routines, and health-conscious lifestyles worldwide is likely to be reflected in the USA market as well, as consumers become more health-conscious.

Drying Technology Improvements: Implementing advanced drying technologies in the USA could help desiccated coconut powder manufacturers improve their production efficiency, reduce costs, and maintain consistent product quality. Improved drying processes could also contribute to enhancing the shelf life and overall quality of the desiccated coconut powder, benefiting both manufacturers and consumers.
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