Global Coconut Derivatives Market Report and Forecast 2024-2032

Global Coconut Derivatives Market Size

The global coconut derivatives market reached a value of approximately USD 15.18 billion in 2023. The market is projected to grow at a CAGR of 10.20% between 2024 and 2032, reaching a value of around USD 36.39 billion by 2032.

Coconut Derivatives Market Outlook

• As per APEDA, coconut production in India has been estimated to be 19,247 million units in 2021-22.

• As per industry reports, European imports of desiccated coconut in 2022 totalled 121,000 tonnes, valued at €325 million.

• According to the Ministry of Affairs, coconut is the sixth most cultivated fruit, grown in 93 countries, with 70% from the Philippines, Indonesia, and India.

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Coconut Derivatives Market Growth

Coconut derivative products offer various benefits across different categories. Coconut water is an excellent hydrating drink rich in electrolytes, low in calories, and packed with nutrients. Coconut oil, supports metabolism, weight loss, and heart health, and is useful in cooking. The cosmetics sector uses coconut oil for its moisturising and antimicrobial properties. These benefits drive their popularity in the food, health, and cosmetic industries.

According to the FAO, the increase in global coconut production reached 64 million tonnes in 2021 from 62.8 million tonnes in 2020. This boosts the coconut derivatives industry revenue by increasing supply, reducing costs, enabling market expansion, fostering innovation, enhancing global reach, and promoting sustainable growth.

Key Trends and Developments

Introduction of new innovative products, rising awareness about health concerns, and the growing incorporation of coconut kernel are the major trends impacting coconut derivatives market development

March 26, 2024

100 Coconuts, a rapidly growing premium coconut water brand, launched its new 16.6-fluid ounce can of pure coconut water, accessible on Amazon and select stores this summer.

September 05, 2023

Kannadi Karshaka Kootayma from Chirakkara launched three herb-infused virgin coconut oil varieties under the Kannadi brand. The three oils are infused with brahmi, kudangal and kayyonni.

August 15, 2023

Nari'yal Cosmetics, led by young entrepreneur Bhumesh Patel, has made waves in the beauty sector with its innovative line of coconut-derived skincare essentials, featuring products crafted from patented Thai coconuts.

August 3, 2023

Erewhon, a leading organic grocer, has made a strategic investment in Zuma Valley, a coconut-focused food brand, to support its goal of incorporating coconut into a wide range of products.

Introduction of new and innovative products

The introduction of new and innovative coconut products stimulates market growth by meeting diverse consumer preferences, aligning with current trends, expanding applications, and enhancing overall value propositions.

Expanding cultivation of coconuts

Various governments are promoting coconut cultivation to meet the rising demand of coconut derivatives market, with initiatives like technical support, financial aid, and technology promotion for processing. 

Rising awareness about health concerns

Consumers prefer coconut derivatives for natural health benefits, nutritional value like electrolytes in coconut water, and sustainability, reflecting eco-friendly choices. 

The growing incorporation of coconut kernel

Coconut meat's versatility in savoury and sweet dishes, nutritional benefits, and alignment with vegan and gluten-free diets drive its increasing popularity and market demand.

Coconut Derivatives Market Trends

A notable shift towards organic and sustainably sourced products reflects increasing consumer preferences for environmentally responsible choices. This trend is complemented by the expanding use of coconut derivatives in functional foods and beverages, where their health-enhancing properties and electrolytes are highly valued. In the cosmetics and personal care sector, coconut oil and milk continue to innovate, leveraging their moisturising and nourishing benefits.

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Coconut Derivatives Industry Segmentation

“Coconut Derivatives Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Mature

• Young

Market Breakup by Derivatives Product

• Coconut Water

• Coconut Oil

• Coconut Milk

• Desiccated Coconut

• Others

Market Breakup by End Use

• Food and Beverages

• Cosmetics

• Pharmaceuticals

• Others

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Coconut Derivatives Market Share

Coconut oil drives the market due to its versatile applications in culinary, health, wellness, and industrial sectors.

Coconut oil commands a significant share of the coconut derivatives market due to its multifaceted applications and benefits. Its rich content of medium-chain triglycerides (MCTs) offers metabolic, weight management, and cardiovascular health advantages, making it a sought-after product in the healthcare sector.

In the cosmetic industry, coconut oil's moisturising, anti-inflammatory, and antimicrobial properties drive its inclusion in skincare and hair care products. Consumer preference for natural and organic products amplifies demand for organic and virgin coconut oil. Additionally, its diverse industrial applications span across pharmaceuticals, soaps, and biofuels, increasing the coconut derivatives market value.

Additionally, coconut water is rich in electrolytes like potassium, sodium, and magnesium and offers excellent hydration, especially for athletes. Its low-calorie, natural composition appeals to health-conscious consumers seeking alternatives to sugary drinks. With essential nutrients, vitamins, and antioxidants, coconut water supports overall health and wellness. Its versatility in smoothies, and as a mixer broadens its market appeal, making coconut water a significant and growing segment in the market.

The extensive use of coconut derivatives in the cosmetic industry is driven by their multifunctional benefits, alignment with consumer preferences for natural products, and continuous innovation in product formulations leading to the growth of coconut derivatives market.

Coconut derivatives offer various benefits in the cosmetic industry due to their versatile and beneficial properties for skin and hair care. Individuals are becoming more conscious of the ingredients in their cosmetic products and are increasingly preferring natural and chemical-free options which align with their desire for safe and beneficial skincare and haircare solutions. The numerous health benefits associated with coconut derivatives, such as hydration, nourishment, and anti-ageing properties, further fuel the coconut derivatives demand.

There is a growing awareness and concern among consumers about product ingredients, leading them to prefer products with well-known and trusted ingredients. Manufacturers and producers continuously innovate and develop new formulations that include coconut derivatives to enhance product effectiveness and attractiveness. This innovation ensures that coconut derivatives continue to be at the forefront of new product development, offering several coconut derivatives market opportunities to meet the changing needs and preferences of consumers.

Leading Manufacturers in the Coconut Derivatives Market

To meet the increasing demand, companies are introducing unique products including snacks and beauty products with coconut extract.

Axelum Resources Corp.: Founded in 1986, with its headquarters in the Philippines, Axelum Resources Corp. manufactures and provides coconut derivatives such as milk powder, cream, water, oil, and desiccated coconut globally.

Jaka Investments Corporation: Jaka was founded in 1974, with its headquarters in the Philippines. The company operates in investment management, real estate, safety matches, forestry, distribution, food production, security, and social outreach.

Celebes Coconut Corporation: Founded in 1981, Celebes Coconut Corporation is a reputable manufacturer and exporter of organic banana chips, coconut products, and dehydrated fruits. The company is headquartered in the Philippines.

The Vita Coco Company, Inc.: Founded in 2004, with its headquarters in the United States, The Vita Coco Company offers leading coconut water Vita Coco, sustainable Ever & Ever, and protein-infused PWR LIFT.

Other global coconut derivatives market key players are PT. Global Coconut among others.

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Coconut Derivatives Market Analysis by Region

Asia Pacific significantly contributes to the market due to high production, established demand, and growing health awareness. Major producers like Indonesia, the Philippines, and India lead global coconut production. Indonesia produces about 17 million metric tons of coconuts annually. Coconut is a dietary staple in these countries, creating a strong demand for products like coconut oil, milk, and water. Additionally, increasing awareness of the health benefits of coconut derivatives further drives market growth in the region.

Key Highlights of the Report

Coconut Derivatives Market Report Snapshots

Coconut Derivatives Market Size

Coconut Derivatives Market Growth

Coconut Derivatives Market Trends

Coconut Derivatives Market Share

Coconut Derivatives Manufacturers

Coconut Derivatives Market Regional Analysis