Global Coconut Extracts Market Report and Forecast 2024-2032

Global Coconut Extracts Market Size

The global coconut extracts market is estimated to grow at a CAGR of 16.80% in the forecast period of 2024-2032.

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Rising Demand for Coconut Powder to Increase the Coconut Extracts Market Share

Based on form, the increasing demand for coconut powder for various applications is driving the growth of the segment. The longer shelf life of coconut powder compared to its counterpart is leading to its increased adoption. Coconut powder is a perfect substitute for dairy milk and can be used to prepare a variety of curries, soups, desserts, and others as the powder easily blends with the preparation to produce a smooth creamy texture. It is widely used in bakery and confectionery applications to impart a rich and sweet flavour and enhance the texture and mouthfeel of the end product. The rising inclination towards coconut powder owing to its health benefits and ease of use is playing a critical role in increasing the coconut extracts market value.

Coconut Extracts Market Regional Analysis

Region-wise, the Asia Pacific is expected to witness a significant growth over the forecast period owing to the increased production of coconut in countries like India, Indonesia, and the Philippines, and thus, the easy availability of raw materials in the region. The growing preference for fortified food products as a result of the rising health awareness in the region is expected to enhance the coconut extracts demand further.

Recent Developments

Recently, the popular organic coconut water line of Harmless Harvest, which also produces delectable coconut-based beverages, dairy-free coconut yoghurt substitutes, and coconut water, has expanded to include three new flavored varieties that have a hint of organic juices and herbal teas. With the addition of flavor to the original, best-selling coconut water, these three new products—Watermelon, Cucumber Mint, and Strawberry Rose—make a refreshing beverage that can be enjoyed at any time.

Leading Ayurvedic and Natural Health Care Company in India, Dabur India Ltd., expanded its position in the coconut oil industry in February 2022 with the announcement of the launch of "Virgin Coconut Oil." Dabur Virgin Coconut Oil is entirely natural, 100% suitable for cooking, and has long been used as a massage oil and for skin and hair health. The item can be found on Amazon.

Industry Outlook

Coconut oil was imported primarily from Indonesia, Philippines, Vietnam, Sri Lanka, and Malaysia and exported primarily to Canada, Mexico, Japan, Colombia, and Costa Rica in April 2024, valued at $6.81M, $2.2M, $257k, $74.7k, and $68.4k, respectively. The rise in coconut oil exports to Canada, Honduras, and the Dominican Republic in April 2024 was the main factor contributing to the year-over-year increase in exports.

Coconut Extracts Industry Statistics in India

India, which produces 19,310 million coconuts annually, is the world's top producer, contributing around 31.45% of global production in 2021–2022. 89.13% of the country's coconut land and 90.77% of its coconut production in 2021–2022 are found in Kerala, Karnataka, Tamil Nadu, and Andhra Pradesh, which are the primary locations for coconut production in India. Assam, Gujarat, West Bengal, Orissa, Maharashtra, and Bihar are the other states in the country that produce coconuts. The value of India's exports of coconut goods in 2022–2023 was Rs. 3,555 crores, a 9.8% increase from 2021–2022. Coconut oil exports increased from US$ 4.78 billion to US$ 5.12 billion (a 7.16% increase) in 2019 and 2020.

As per the coconut extracts industry analysis, the Ministry of Agriculture and Farmers Welfare oversees the Coconut Board of India, which has carried out numerous initiatives to boost the nation's coconut sector. A few of the programs are: producing and distributing high-quality planting materials; increasing the area under cultivation; demonstrating and improving technology; revitalizing and replanting areas; assisting exporters in their participation in international events; providing training for the marketing of export-specific products; and expanding the worldwide market for coconut products by generating opportunities.

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Coconut Extracts Industry Segmentation

Coconut extract is a product derived from the meat of the coconut. It is added to various items as a flavouring agent or as a moisturising agent. As it retains the taste and health benefits of coconut, it can be used in food items, tropical drinks, desserts such as coconut cream pie or ice cream, and cosmetic products. The different coconut extract alternatives include coconut oil, coconut milk, and coconut water.

The market for coconut extracts, by form, is divided into:

• Liquid

• Powder

Based on end use industry, the market is segmented into:

• Food and Beverages

• Cosmetics and Personal Care

The regional markets for coconut extracts can be divided into North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

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Expanding Food and Beverage Sector to Drive the Coconut Extracts Market Growth

The utilisation of coconut extracts in culinary dishes and beverages to enhance taste and texture is fuelling the coconut extracts demand growth. The rising inclination of people towards ready-to-eat foods and the use of coconut milk in sweets, desserts, puddings, cocktails, cakes, cookies, coconut jams, and ice creams, among others are favouring the growth of the market. The growing awareness among people about the health benefits of coconut extracts, such as a good energy source, antimicrobial effects, reduced seizures, and improved oral health, is resulting in the increased consumption of food items with coconut extracts. Additionally, the antioxidant benefits of coconut extracts and their efficiency in promoting healthy skin and hair are leading to its wider adoption in beauty products.

The use of modern technology to enhance coconut production in different parts of the world, primarily the Asia Pacific region, and the government initiatives to increase coconut production by providing incentives to growers for planting new coconut seedlings are expected to enhance the availability of raw materials for coconut extracts, thus increasing the coconut extracts industry revenue. Furthermore, the development of new products using coconut extracts, such as coconut squash, and the incorporation of the extracts in various cosmetic products are expected to further augment the market growth over the forecast period.

Growing Emphasis on Sustainable and Ethical Sourcing Practices is One of the Key Coconut Extracts Market Trends

• Health and Wellness Trends: Increasing consumer awareness of the health benefits of coconut products, such as coconut oil and coconut water, drives market growth.

• Versatility in Applications: Coconut extracts are used in diverse industries including food and beverage, cosmetics, and pharmaceuticals, expanding market opportunities.

• Sustainable Sourcing: As per coconut extracts market dynamics and trends, growing emphasis on sustainable and ethical sourcing practices in coconut cultivation enhances market attractiveness.

• Rising Vegan and Natural Product Demand: Shift towards vegan diets and natural ingredients fuels demand for coconut-based alternatives in various consumer products.

What are the Challenges in the Global Coconut Extracts Market?

• Price Volatility: Fluctuations in coconut supply and market prices impact profitability and production costs for manufacturers and processors.

• Quality Control and Standardization: Ensuring consistent quality and meeting regulatory standards across different geographical sources poses challenges.

• Competition from Substitutes: The availability of alternative oils and plant-based extracts competes with coconut extracts in various applications.

• Climate Vulnerability: The vulnerability of coconut cultivation to climate change, including tropical storms and diseases, affects supply reliability and market stability and influences the coconut extracts demand forecast.

What are the Opportunities in the Global Coconut Extracts Market?

• Emerging Markets: Expansion opportunities in developing regions where coconut consumption is increasing, driven by economic growth and urbanization.

• Product Innovation: Development of new coconut-based products, such as functional foods, beauty products, and nutraceuticals, opens new market segments.

• Health and Wellness Segment: Growing demand for organic and natural ingredients in personal care and health products creates several coconut extracts market opportunities.

• Strategic Partnerships: Collaborations with food processors, cosmetic manufacturers, and pharmaceutical companies to develop tailored coconut extract solutions.

What are the Setbacks Faced by the Global Coconut Extracts Market?

• Supply Chain Disruptions: Challenges in logistics and transportation, especially for perishable coconut products, impact supply chain efficiency and negatively impacts the coconut extracts market revenue.

• Regulatory Challenges: Evolving regulatory frameworks and standards for food safety and labeling in different markets require compliance and adaptation.

• Consumer Perception: Misconceptions or misinformation about coconut oil's health effects, such as its saturated fat content, may affect consumer acceptance.

• Economic Factors: Currency fluctuations, trade tariffs, and economic downturns in key coconut-producing regions can affect market dynamics and pricing.

Competitive Landscape:

The key players in the market are McCormick & Company Incorporated, Flavorganics, LLC (Elan Inc.), Sauer Brands, Inc., Herbochem, and OliveNation, LLC, among others.

Strategic Initiatives of Key Players:

McCormick & Company Incorporated

• Product Innovation: McCormick focuses on continuous product innovation in coconut extracts, leveraging its strong R&D capabilities to introduce new flavors and formulations and propelling the growth of the coconut extracts market.

• Global Market Presence: With a robust distribution network spanning across key regions, McCormick effectively penetrates international markets, leveraging economies of scale in production and distribution.

• Brand Reputation: McCormick's established brand reputation and trust among consumers for quality and consistency in flavors contribute significantly to its competitive advantage in the global coconut extracts market.

Flavorganics, LLC (Elan Inc.)

• Organic and Natural Focus: Flavorganics emphasizes organic and natural ingredients in its coconut extracts, catering to the growing consumer demand for clean label products.

• Specialized Product Line: Known for its specialized range of organic coconut extracts, Flavorganics targets niche markets and health-conscious consumers seeking premium and sustainable options.

• Customer Engagement: Flavorganics maintains strong customer relationships through direct engagement and personalized marketing strategies, fostering brand loyalty and consumer trust.

Goodman’s

• Product Diversification: Developing a range of coconut extract products to cater to different customer preferences, including organic, non-GMO, and flavored variants is a key trend of coconut extracts market.

• Sustainable Sourcing: Partner with coconut farmers to ensure sustainable and ethical sourcing practices. Also, invests in fair trade and organic certifications to attract environmentally-conscious consumers.

• Brand Positioning: Position Goodman's as a premium brand in the coconut extract market by emphasizing quality, purity, and natural ingredients.

Key Highlights of the Report

Coconut Extracts Market Report Snapshots

Coconut Extracts Market Size

Coconut Extracts Market Growth

Coconut Extracts Market Share

Coconut Extracts Companies

Coconut Extracts Market Regional Analysis