Coconut Milk Market Size, Market & Industry Analysis, By Grade (Full-fat Milk and Lite Milk), By Form (Liquid and Powder), By Category (Organic and Conventional), By Application (Household Sector, Food Service Sector, and Industrial Sector [Food and Beverages {Dairy Alternatives, Bakery goods, Confectionary, and Others}, Cosmetics and Personal Care Products and Others]), and Regional Forecast, 2024-2032

The global coconut milk market size was valued at USD 2.69 billion in 2023. The market is projected to grow from USD 2.89 billion in 2024 to USD 7.23 billion by 2032, exhibiting a CAGR of 12.15% over the forecast period. Some of the prominent manufacturers include Axelum Resources Corp., Thai Coconut Public Company Limited, Sambu Group, McCormick & Company, Incorporated, Danone S.A, among others.

Coconut is a tropical fruit which is mainly grown in the Southeast Asian countries and Caribbean islands. Some of the key coconut-producing countries in the world include Indonesia, the Philippines, India, Brazil, Sri Lanka, Vietnam, and Thailand. As per data provided by the Food and Agriculture Organization (FAO), the production of coconut in 2023 was 62,465.87 thousand tonnes. Some of the key value-added coconut products include coconut water, milk, desiccated products, coconut oil, coconut chips, coconut quash, coconut sugar, and others. This product obtained is extracted from the pulp of mature coconuts. As coconut products have been identified as key growth areas, they are investing heavily in capacity expansion and new product development to cater to the evolving market needs. 

MARKET DYNAMICS

Market Drivers

Growing Demand for Plant-Based Milk to Propel Market Growth

Over the past few years, consumer awareness regarding the health attributes of natural, plant-based products has increased substantially, leading to plant based milk varieties becoming mainstream among consumers. The trend of veganism has rapidly spread across the globe, which has resulted in surging demand for plant-based milk and other products.

The growing perception that plant-based milk is ethical and healthier compared to animal-based counterparts, has boosted the demand for vegan milk such as coconut produts, almond milk, and others.

Growing Awareness About Potential Health Benefits of Coconut Products to Escalate Market Growth

The milk is a good source of healthy fats called medium-chain saturated fatty acids (MCFAs). The lauric acid content in MCFAs is converted in the body into a beneficial compound known as monolaurin, which has antifungal and antiviral, and antibacterial properties that can help eliminate a wide variety of disease-causing organisms. In addition, according to studies from PubMed Centre 2018, MCFAs increase insulin sensitivity, which researchers believe can contributes to weight loss. Insulin is an important hormone that breaks down glucose and regulates blood sugar levels. Health conscious consumers are increasingly using such products for cooking at home. Therefore, the growing popularity of coconut products derived from it may help to protect the body from viruses and infections, further contributing to market growth.

Market Restraint

Presence of Other Plant Based Alternatives to Limit Market Growth

The market faces competition from a wide range of substitute vegan milks such as almond milk, oat milk, soy milk, hemp milk, and others that possess almost similar nutritional properties. These alternatives offer consumers with variety of choices, which is likely to hinder market growth. Products such as oat milk, soy milk and others have higher fiber content compared to other plant milks. Oat milk is considered more sustainable milk alternatives among others. The fortification of oat and rice milks with vitamins A, B12, B2, and D, as well as with calcium and minerals, to retain its essential nutrients by various manufacturers has also shifted consumer’s interest toward replacements.

Market Opportunity:

Increased Government Support To Plant-Based Milk And Dairy Products Offer Growth Opportunity

Government and business leaders are increasingly recognizing the benefits of plant-based diets, as a suitable option to address both social and environmental issues. In countries such as Canada, producers are growing plants instead of raising livestock, in response to the increased consumer demand for plant-based dairy, with the substantial financial support provided by the Canadian government. India, which is the largest producer of coconut in the world, is continuously making efforts to ramp up its production of coconut. Governments across several coconut producing states of India are taking initiatives and providing financial support to growers in order to maximize production of the crop. Increased production of coconuts can play a pivotal role in supporting the market’s growth.

Market Challenge:

High Cost of Coconut Milk Products to Hinder Market Growth

High cost of this milk compared to few of its counterparts make it less affordable for people from different economic backgrounds. Although vegan milk is costlier than conventional cow’s milk, such products tends to be pricier than few of the vegan milk options. This price disparity is predicted to coconut milk market growth in the upcoming years. Moreover, high price volatility associated with organic products, powder, and unsweetened versions, could disrupt the regular and smooth supply across foodservice and retail industry. This volatility may have a negative impact on the global market’s growth.

Market Trends

Development of Innovative Food & Beverage Products Using Such Products Helps in Fulfilling Modern Consumer Demands

Both conventional and organic products are gaining recognition as healthy and natural ingredients across many regions. They are being used in preparing a wide variety of recipes ranging from bakery products, smoothies, desserts, and sauces. Various established and emerging companies existing in the plant-based milk space are spending on creating products by utilizing widely available yet less-utilized sources/ingredients such as coconut, barley, hemp, and others. These factors are influencing the global market trends.

• For instance, in 2020, India’s prominent Greek Yoghurt brand – Epigamia, became the first to introduce a dairy-free yogurt made by using a base. The brand launched a variety of versions of its coconut yogurt, including sweetened with jaggery, unsweetened coconut yogurt, and blueberry yogurt.

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Impact of COVID-19

The COVID-19 spread affected the food service industry and its operations. During the pandemic, heavy restrictions and lockdowns were imposed, leading to closure of public places to prevent the spread of infection. As a result, many hotels and restaurants with dine-in facilities were closed partially or fully. Furthermore, consumers were reluctant to dine out in confined food service settings due to the possibility of getting affected with COVID-19. Hence, the expenditure and visits to restaurants fell suddenly during the pandemic.

SEGMENTATION ANALYSIS

By Category

Conventional Segment Accounts For the Highest Market Share Owing To Large Product Availability

By category, the market is segregated into organic and conventional milk.

Conventional products accounts for the largest market share and are expected to continue dominating during the forecast period due to their wide product availability and the economical nature.

Organic products are free of unwanted and harmful ingredients such as pesticides, genetically modified organisms, artificial dyes, and excessive sugar, making them appealing among health-conscious consumers. Hence, the segment is expected to register the fastest growth in the future. After the COVID-19 pandemic, the demand for organic food and beverages increased among health-conscious consumers.

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By Grade

Full-fat Milk Segment Accounts for the Largest Market Share as It Is Less Processed Compared to Other Varieties

On the basis of grade, the global market is segregated into full-fat milk and lite milk.

Full-fat milk accounts for the largest market share and is used in households and foodservice restaurants for preparing curries and pastes. Full-fat products are considered to be less processed and dense in nutrients and hence are preferred by consumers who prefer to enjoy the full taste of coconut products.

Lite versions accounts for the second-largest share as they are preferred by consumers who seek the nutrients benefits in their diet without the need to include additional calories in their diet.

By Form

Liquid Accounts Segment Accounts For the Largest Market Share Due to Wider Product Availability

The global market has been segregated into powder and liquid on basis of form.

The liquid form of milk is most widely used and available in the market which contributes to its high market share compared to its powder form. The products are comparatively economical and can be easily added to dishes and beverage production.

Conversely, powder form accounts for the second most used form of products and is used in industrial preparations. This form tends to be more expensive compared to liquid version as it requires additional processing and advanced equipment to manufacture such ambient products. In addition to its use in the food and beverages sector, it is also used in skincare and personal care production.

By Application

Increasing Number of Foodservice Providers Providing Coconut based Dishes to Favor Market Expansion

The global market has been segregated into the household sector, food service sector, and industrial sector based on the application.

The foodservice sector accounts for the highest market share owing to the increased use of such products for preparing exotic dishes globally. Consumers are seeking quick and easy meal options through dining and quick-service restaurants. In Asian cuisines, it is an essential ingredient, enhancing the flavor, aroma, and overall appeal of dishes.

Industrial applications hold the second major market share. Among the different industrial applications, the dairy alternative accounts for the largest industrial application of such products. Apart from oats and almonds, it is one of the essential ingredients in the production of dairy alternatives, including ice cream products as well.

Moreover, the rapid demand for such plant-based alternative products globally acts as the major factor supporting the market’s growth. Among other industrial applications, the demand for vegan cosmetic products has increased significantly in recent years which is supporting the adoption of natural ingredients for vegan cosmetics manufacturing.

Global Coconut Milk Market Regional Outlook

Geographically, the global market is studied across North America, Europe, Asia Pacific, and Rest of the World.

Asia Pacific

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The Asia Pacific region is the leading producer of this milk in the world. Countries such as India, Sri Lanka, Thailand, Vietnam, Philippines, which have tropical climate, account for the largest share in the production of coconut. These countries are also the major exporters of such products to North America, Europe, and Middle Eastern markets.

There are a significant number of traditional dishes prepared in the region which contain such milk as its main ingredient and such food items are also popular globally. Each country provides a unique combination of flavors and exotic ingredients, contributing to the diversified and global acclaim of Asian cuisines, which is likely to have a positive impact on the demand for milk in the region.

Thailand is one of the largest producers and exporters of such products in the world. Some of the key manufacturers of in the country include Choakoh, Goya, Thai Kitchen, Kame, Whole Foods 365, and others. Growing demand for plant-based healthy food products and increasing consumer interest in Thai cuisine are major factors propelling the popularity of plant-based milk products among consumer and supporting the market’s growth.

North America

In the North American market, there is a high demand among consumers for sustainably sourced ingredients for manufacturing food and beverages. Thus, companies are collaborating and investing in developing new and sustainably sourced functional ingredients that manufacture innovative products that appeal to the evolving consumer demand. Moreover, as per data provided by the Plant-Based Food Association, around 33% of the shelf space in supermarkets is reserved for plant-based milk options. This creates an opportunity for the manufacturers to develop new products which can find application in the food and beverages industry and at the retail level by consumers.

The demand for premium category milk alternatives is increasing among consumers. It is one of the premium categories of milk, which is witnessing strong growth and interest among consumers post pandemic. Moreover, certain companies such as Califia are also using such products to launch new organic product lines of milk alternatives made of 3-4 ingredients which is attracting young consumers.

For example, in June 2024, Califia Farms, a U.S.-based company, launched an organic products, made from coconut derived milk, coconut water, baking soda and water. The product was launched in select retail stores and was made available at a price of USD 6.99.

Europe

In Europe, the number of consumers adopting a vegan diet and vegan lifestyle is increasing, with consumers aware of the animal welfare and environmental impact of traditional cosmetic products. This has led to a surge in demand for cruelty-free organic vegan products which are manufactured using naturally sourced ingredients. As per research published by Fortune Business Insights, the vegan cosmetics market in Europe is expected to be valued at USD 8.83 billion in 2030. Therefore, manufacturers are launching vegan product lines to meet this growing and evolving consumer segment.

In February 2024, British multinational company Unilever introduced a plant-based soap bar as a part of its “Dove” soap range. This soap is 100% plant-based bar, made with milk, & sugar lychee, providing nourishment for the skin.

Rest of the World

The surge in exposure of the inhabitants to international cuisines has influenced new cooking methods where the traditional ingredients are replaced with exotic components, to create a flavorful dish. Furthermore, the increasing demand for vegan food and beverages also fueled the demand for coconut milk in food and beverage industry globally due to which, the consumption of coconut milk is expected to increase.

The tourism industry in Middle East & Africa, South American countries, and the Caribbean nations has evolved to be an attractive sector. The surge in the number of tourists in the region has opened various opportunities for exploration in the culinary space, with consumers looking for unique and experimental flavors. The increasing number of travelers, especially from Southeast Asia, is driving the incorporation of such products for the preparation of desired cuisines.

COMPETITIVE LANDSCAPE

Key Industry Players

Prominent Players are Focusing on Market Expansion to Bolster Their Market Position

The global market is a fragmented market with several multinational companies, regional players, and domestic players competing with each other to secure their positions through strategic initiatives, market presence, and industry influence. Mergers/Acquisitions/Partnerships followed by expansion and innovation are the major strategic initiatives adopted by the companies to expand and compete in the global market. Some of the key players operating in the market include Sambu Group, Axelum Resources Corp., and McCormick & Company. These companies significantly shape the competitive landscape through various strategies, including diverse production, distribution, processing, innovation, market expansion, promotion, and sustainability strategies. Such strategies are influencing the global coconut milk market growth.

List of Major Players Profiled:

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McCormick & Company, Incorporated, Danone S.A., Thai Coconut Public Company Limited, Axelum Resources Corp. and Sambu Group are some of the largest players in the market. The global market is moderately fragmented, with the top 5 players accounting for around 30% of the global coconut milk market share.

List of Key Coconut Milk Companies Profiled:

• Sambu Group (Indonesia)


• Axelum Resources Corp. (Philippines)


• McCormick & Company, Incorporated (U.S.)


• Thai Coconut Public Company Limited (Thailand)


• Campbell Soup Company (U.S.)


• Danone S.A. (France)


• Goya Foods, Inc. (U.S.)


• Nestle S.A. (Netherlands)


• Cocomi Bio Organic (Sri Lanka)


• SunOpta Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• August 2023: AXELUM Resources Corp. launched coconut milk powder in flexible pouches for consumers in the market.


• April 2023: Atlante announced its plans to launch Organic Coconut products as a part of its “Berry Sanders” brand. The product is made from organic coconuts sourced from Thailand.


• March 2023: Thai Coco launched new product named ‘Coconut Milk in Pouch’ featuring innovative packaging which can be used for culinary purposes.


• January 2023: The Vita Coco Company Inc. launched new product under its “Vita Coco Barista MLK” in collaboration with Alfred Coffee chain.


• December 2021: Ayam Brand launched Organic Coconut products in Malaysia, produced using organic methods that are free from hormones, GMOs, and pesticides.

Investment Analysis and Opportunities

Countries like Vietnam, India, and Sri Lanka are exporting coconut products to other markets which mainly include North America and Europe. As coconut is a tropical fruit, these is negligible production of such products in these regions. Hence, the countries depend on other coconut-producing tropical countries to meet their domestic demand. For instance, as per data provided by the Food and Agriculture Organization (FAO), the U.S. imported 47,529.33 tonnes, and Canada imported 8,601.46 tonnes of Shelled coconut in 2022. Companies are collaborating and investing in developing new and sustainably sourced functional ingredients that manufacture innovative products that appeal to the evolving consumer demand. This creates an opportunity for the manufacturers to develop new products which can find application in the food and beverages industry and also can be used at the retail level by the consumers.

REPORT COVERAGE

The report analyzes the market in-depth and highlights crucial aspects such as market analysis, prominent companies, grade analysis, form, category, and application. Besides this, the research report also provides insights into the market trends and highlights significant industry developments.

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Report Scope & Segmentation