"Market Intelligence that Adds Flavour to Your Success"
The global coconut derivatives market size was USD 11.05 billion in 2019. The spread of COVID-19 has provided significant challenges for the coconut raw material suppliers and also the processors. Based on our analysis, the demand for coconut water was huge in 2020, and panic buying was observed among the consumers leading to a shortage of packaged coconut water. This was mainly due to its health benefits and longer shelf life. However, the demand for other derivatives of coconut was comparatively lesser. The global market is projected to grow from USD 11.60 billion in 2020 to USD 23.39 billion in 2027 at a CAGR of 10.54% during 2020-2027. The growth in CAGR is attributed to the rise in popularity of veganism and the increase in consumption of plant-based food & beverages. The growth of the market is also supported by upsurging demand for natural and organic-based personal care products.
Limited Availability of Raw Material during COVID-19 to Hamper Market Growth
A lockdown followed the outbreak of COVID-19 in most of the countries across the world. Though the lockdown was imposed to curb community transmission within the population, it has posed various operational challenges for coconut derivative manufacturers. Due to the limited mobility of traders and farmers, the volume of coconuts delivered was lower than usual quantities. Thus, the lesser availability of raw material has affected processing capacity, and this has further resulted in an increase in prices and disrupted supply chain.
While disruption in the supply chain impacted the market's growth, several positive outcomes supported market growth during the COVID-19 outbreak. For instance, the increasing sales of coconut water and the rising awareness regarding coconut oil use. In March 2020, the sales of coconut water spiked in the U.S. On the other hand, in the Philippines, scientists started studying virgin coconut oil (VCO) as a potential treatment for coronavirus.
Request a Free sample to learn more about this report.
Growing Preference for Vegan Diets to Fuel Growth
The trend of veganism has rapidly spread across the globe leading to an increased demand for plant-based products. The acceptance of the veganism trend has become popular in many developed parts of the world. It promotes the development and use of animal-free alternatives to benefit animals, people, and the environment. Plant-based diets are one thing that has been commonly observed among all vegans. The growing perception that coconut oil and coconut milk can be used as an alternative to animal fats and animal milk has surged the demand for the derivatives of coconut. This is anticipated to bode well for the market growth.
Rising Popularity of Plant-based Alternatives to Propel Market Growth
According to the Plant-Based Foods Association, U.S., growth in retail sales of plant-based foods and plant-based milk increased by 11% and 5%, respectively, while the growth of all foods and dairy-based milk increased slightly by 2.2% and 0.1%, respectively. The growing demand for plant-based milk is primarily attributed to the rising awareness regarding health benefits associated with plant-based beverages. This ultimately contributes to the growth of the global coconut derivatives industry.
Earlier, coconut derivatives such as coconut oil and coconut milk were only utilized as a food ingredient. However, in the recent past, consumer awareness regarding their usefulness to improve overall health has necessitated manufacturers to invest in developing value-added products. In July 2020, Epigamia, in collaboration with Danone S.A., launched plant-based yogurt made using coconut milk in India. This launch will enable Danone to capitalize on the rising trend of coconut milk as a dairy alternative.
Increasing Utilization of Coconut Derivatives across Cosmetic & Skincare Industry to Drive Coconut Derivatives Market Growth
According to the market analysis shared by the Foreign Agricultural Services (FAS) and the U.S. Department of Agriculture (USDA), the industrial consumption of coconut oil for the cosmetic and skincare industry has increased from 1.51 million metric tons to 1.79 million metric tons. The growing awareness of coconut oil's anti-aging properties has significantly increased its demand across the beauty & skincare industry. The global market for these derivatives of coconut is highly propelled by the increasing demand for coconut-based skincare and haircare products among consumers.
Fluctuations in Coconut Production Owing to Climatic Factors to Restrain Market Growth
The market is significantly hampered by fluctuations in the production of coconut due to various climatic factors. Global climate has been changing rapidly, mainly due to the rising emission of greenhouse gases through multiple human activities such as deforestation and increased industrialization.
Coconut plantation is highly sensitive to climate changes as it is a perennial crop. Climate change affects coconut plantation owing to higher temperatures, preeminent carbon dioxide concentration, rainfall changes, increased weeds, pests and diseases, and the growing susceptibility to organic carbon pools. Also, the vulnerability of coconut plantations to climate change primarily depends on the intensity of atmospheric or soil drought, adaptations, and sensitivity.
Drought stress heavily impacts production in almost all coconut growing regions, primarily a rain-fed crop. Furthermore, summer dry spells every year, apart from the frequent drought years, affect the production. The factors mentioned above reduce coconut production and ultimately restrains the market growth.
Mature Coconuts to Hold the Major Share
Based on type, mature coconuts hold the major coconut derivatives market share in the global market owing to their high flesh content and low price. Furthermore, these coconuts are dried for making copra and extracting coconut oil, which is in high demand among all derivatives.
The young coconut segment is expected to experience considerable growth during the industry forecast period. This is mainly attributed to the growing awareness regarding the benefits associated with the consumption of coconut water. In recent years, the demand for drinkable young coconuts has peaked, especially in the U.S. and European countries such as the U.K.
To know how our report can help streamline your business, Speak to Analyst
Coconut Water to Emerge as the Most Consumed Coconut Derivative
The coconut water segment is projected to grow at the highest CAGR in the forthcoming years due to the rise in demand for coconut water, especially in the developed regions such as North America and Europe. Also, coconut water demand is driven by the growing adoption of healthier functional drinks and an upsurge in the use of coconut water as an ingredient in the beverage industry.
Coconut oil has strong demand in the cosmetics and food & beverage industry due to its strong flavor, mild aroma, and emollient properties. The demand for virgin coconut oil (VCO) is growing faster due to the rising use of healthier vegetable oils and the increasing application of VCO in food supplements and premium healthy snacks. This is expected to favor the segment’s growth in the market.
Cosmetics Holds Major Market Share Owing to High Consumption of Coconut Derivatives
Based on end-user, the cosmetics segment is likely to dominate due to the large consumption of these derivatives such as coconut oil, coconut milk, and coconut cream to produce a range of cosmetic products. Also, cosmetic manufacturers are focused on adopting natural and environmentally-friendly emulsifiers and ingredients such as coconut oil due to the increasing consumer interest in sustainable products.
Coconut derivatives find huge application in the food & beverages industry in coconut water, coconut oil, desiccated coconut, coconut sugar, coconut flour, and coconut milk. This is expected to drive segmental growth in the forthcoming years.
Asia Pacific Coconut Derivatives Market Size, 2019 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
Asia-Pacific region was USD 5.11 billion in 2019 and is expected to dominate the global market during the forecast period. This 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.
The market is witnessing robust growth in Europe due to the ongoing trend of plant-based products. Consumers are highly inclined towards a plant-based diet as it is perceived to be a way to achieve a healthy and sustainable balance between animal products such as meat & milk and vegetables.
The presence of key players such as Vita Coco, McCormick & Company, Inc., and Hain Celestial drives the market's growth in North America. Also, the growing awareness regarding health benefits associated with coconut derivatives consumption is anticipated to drive the demand for coconut products in the region.
To know how our report can help streamline your business, Speak to Analyst
In Rest of the World, there is an upward trend of clean beauty products among South American, Middle Eastern, and African consumers making them choose sulfate-free, paraben-free, and silicone-free beauty products. The popularity of these derivatives such as coconut milk, cocoa butter, and natural ingredients, particularly argan oil, is increasing in South American consumers to maintain their healthy hair.
Companies Focus on Facility Expansion for Broadening Their Market Share
The global coconut derivatives market exhibits a fragmented structure. The few prominent players such as Vita Coco, Celebes Coconut Corporation, and Axelum Resources Corp. in the industry hold a significant share in the entire market owing to their huge clientele base, strong brand loyalty & distribution network. The leading manufacturers are intensively focusing on reinforcing their business capabilities by geographical expansion. For instance, in May 2020, Danone expanded its plant-based category in Europe, post its launch of a new business unit in North America.
An Infographic Representation of Coconut Derivatives Market
To get information on various segments, share your queries with us
The market research report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of the market size and growth rate for all possible market segments. Various key insights are an overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends.
Value (USD Billion)
By Type (Value)
By Derivatives (Value)
By End-User (Value)
Fortune Business Insights says that the global market size was USD 11.05 billion in 2019 and is projected to reach USD 23.39 billion by 2027.
Growing at a CAGR of 10.54%, the market will exhibit promising growth during the forecast period (2020-2027).
market is expected to be the leading segment based on derivatives during the forecast period.
The growing popularity of plant-based alternatives for animal products is expected to act as a boosting factor for market growth.
Axelum Resources, Celebes Coconut Corporation, and Vita Coco are major players in the market.
Asia Pacific dominated the market share in 2019.
The cosmetics segment leads the end-user segment in the market during the forecast period.
The increasing preference for a vegan diet is the key market trend.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- UGlobal hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry