Coconut Water Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Coconut Water Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The global coconut water market is projected to grow at a CAGR of 6.3 % during the forecast period (2022-2027).

During covid, the health trend has recently gained even more momentum, and leading players are expanding the availability of their products globally. Thus, products such as coconut water started gaining popularity in the global marketplace owing to its several health benefits. Furthermore, international health organizations such as WHO encourage consumers to strengthen their immune systems to prevent COVID-19. Various functional beverages are more popular for their immunity-boosting properties. Since coconut water is also known for enhancing immunity, it is increasingly gaining momentum into the regular healthy hydration category by leading manufacturers to tap into the market opportunity posed.

The coconut water market is dominated by the sweetened coconut water segment, which accounts for the major share. The undeclared amounts of sugar in some of the coconut water brands can be a challenge for the growth of the segment. In developed regions such as United States, packed RTD Coconut water drinks are gaining a foothold due to consumer preference for these drinks.

Fitness and health are important to consumers. Natural alternatives to caffeinated and sugar-based energy drinks have become more popular among active and health-conscious customers. Coconut water has a low fat and sugar content, as well as a low-calorie count. It's also beneficial for diabetics. Due to its nutritious characteristics, such as electrolytes and minerals, the demand for coconut water is fast increasing.

Globally, consumers are becoming more health-conscious and seeking healthier products such as coconut water, which are marketed as a dehydrator, a natural diuretic, digestive soother, and cholesterol-lowering product. Low-sugar products are appreciated by the consumers, which is quite seen in the increase in sales of coconut water across various countries in recent years. The consumption of organic products is increasing in developed regions such as Europe and is quite positively influencing the consumption of organic coconut water. With more and more innovative coconut products introduced into the market, the demand for these products is expected to grow during the forecast period.

The Asia-Pacific is expected to dominate the market in terms of packaged coconut water consumption, particularly in China, India, Indonesia, and Australia. Coconut water is highly valued in Thailand as one of the healthiest beverages. Its clear and slightly sweet-tasting liquid from green coconuts is isotonic and has a high potassium content. This makes it a perfect choice of a refresher for restoring the body's nutrient balance after sports among the millennial population in the region. Since Asia-Pacific is one of the major producers of coconut water in the region, the quality of exporting products from the country largely depends on the processing methods followed by major companies. For instance, South East Asia's food and beverage manufacturer Tipco offers coconut water which undergoes UHT processing followed by filling in aseptic carton packs to ensure the nutrient coconut water is treated and packed gently. With an increase in the number of multinational companies setting up their manufacturing plant in the region, the market growth for these products is expected to grow during the forecast period.

The market for coconut water is moderately fragmented. The key players in the market are focusing on growth strategies such as mergers and acquisitions, expanding their distribution capabilities to widen their presence in the market. PepsiCo inc, The Coca-Cola Company, Amy & Brian Naturals, and All Market Inc are some of the prominent players who are operating in this market. 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.

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