Global Coconut Oil Market Report and Forecast 2024-2032

Global Coconut Oil Market Size

The global coconut oil market reached approximately 3.9 million tons in 2023. The market is projected to grow at a CAGR of 1.20% between 2024 and 2032, reaching a volume of around 4.37 million tons by 2032.

Coconut Oil Market Outlook

• As per the industry report in 2023, the Philippines is the largest producer of coconut oil in the world.

• As of 2021-22, India is the largest coconut producer in the world, with a worldwide production share of 31.45 per cent, which creates ample opportunities for the growth of coconut oil market.

• Coconut farmers situated in Karumalloor panchayat, India, announced the launch of coconut oil in January 2024 under the Keragram program, a program that aims to boost coconut production.

Coconut Oil Market Growth

Rising usage of coconut oil for cooking purposes, skincare, and in the dental care sector are some of the prominent market drivers. In the skincare sector, it can be used to provide moisture to the skin, offer relief from skin conditions such as dermatitis, and act as a conventional sunscreen. As per a study published in the National Library of Medicine, coconut oil can block around 20 percent of sun rays.

Moreover, virgin coconut oil may possess antioxidant properties that can reduce stress levels and help combat depression. Coconut oil demand is further boosted for its use in the dental care sector for oil-pulling purposes as it can reduce bacteria Streptococcus mutans and lower the risk of inflammation and plaque.

Companies are formulating innovative products with the implementation of coconut oil. For instance, AAK announced the launch of AkoVeg 163-14 in March 2024, a blend of coconut oil and insoluble fibre flake, which can develop plant-based meat, with no cholesterol.

Key Trends and Recent Developments

Demand for organic products, application across various sectors and sustainability concerns are a few elements shaping up the coconut oil market dynamics and trends.

May 2023

Waitrose has launched its new own label Coconut Oil, the United Kingdom's first to be both organic and Fairtrade. The coconut oil was manufactured by the Sonmic Organic and Natural Farmers' Association of SONFA.

February 2022

Dabur India Ltd has announced the launch of "Virgin Coconut Oil', further strengthening its presence in the coconut oil market. Dabur Virgin Coconut Oil is 100% Natural; it can be used for cooking and is traditionally also used for Skin & Hair Health and as massage oil. It would be available on Amazon, India's leading e-commerce platform, at Rs. 399 for 500 ml.

Organic products

One of the major trends in the global coconut oil market is the rising demand for organic and natural products. With the growing health and environmental concerns, consumers are seeking organic certification and no chemicals added to coconut oil. This trend comes to increase organic coconut oil production and sales.

Application across various sectors

Another trend of the coconut oil market is the rise in coconut oil use outside of food applications. A large and increasing quantity of coconut oil is used for personal care, particularly in skincare and haircare products. Apart from that, it is also applied in biofuels and industrial uses. Of course, such diversification can only prove its versatility and increasingly wide-ranging recognition of the benefits in several industries.

Sustainability concerns

Sustainability is rapidly becoming a key focus area in the coconut oil market. Companies, in an effort to reduce the negative impact of the production process on the environment, have started to get involved in sustainable sourcing through fair trade and eco-friendly methods of production. This has been driven by consumer preference for ethically manufactured products and enhanced awareness about environmental issues.

Coconut Oil Market Trends

Another major trend boosting the coconut oil demand growth is the growing share of premium and specialty products. Consumers are ready to accept a more expensive cost because of the additional benefits of coconut oil, such as enhanced purity, unique processing, or specific health claims. This trend is very much in keeping with a general movement of consumers toward looking for high-quality, more functional ingredients in their diet and personal care composition. Therefore, brands are coming up with and advertising premium coconut oil products given the changing trend in consumer preference.

Industry Outlook

As per coconut oil industry analysis from the Food and Agriculture Organisation, in 2022, global coconut production will be led by Indonesia with an output of 17.13 million metric tonnes. Next comes the Philippines with 14.77 million metric tonnes, followed by India at 14.68 million metric tonnes. Only these three countries dominate the world coconut sector since their suitable climatic conditions contribute much to its overall production.

Sri Lanka, although much smaller in land area compared with the top three, ranks fourth with a production of 2.46 million metric tonnes, underlining the country's role in the coconut industry. Brazil, the top producer in the Americas, is forecast to yield 2.33 million metric tonnes, indicating the fast-paced rise in the world market. Vietnam turned 1.68 million and Mexico 1.29 million metric tons, respectively.

Finally, Papua New Guinea, Thailand, and Malaysia round out the top ten, with projected productions of 1.19 million, 0.81 million, and 0.54 million metric tonnes respectively. While significantly smaller in production scale compared with the leaders, these nations are important players in their respective regions and help diversify the demand of the global coconut market.

Coconut Oil Industry Segmentation

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

Market Breakup by Nature

• Organic

• Conventional

Market Breakup by Source

• Dry Coconut

• Wet Coconut

Market Breakup by Product Type

• RBD

• Virgin

• Crude

Market Breakup by Application

• Food and Beverages

• Pharmaceuticals

• Cosmetic and Personal Care

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Coconut Oil Market Share

Organic Coconut Oil To Gain Traction For Health Conscious Consumers Globally

It is expected that the organic segment in the coconut oil market is poised to grow exponentially. The change in consumer behaviour refers to increased awareness among consumers concerning health and the environment, thereby reaching out to more chemical-free and sustainably sourced products. Organic coconut oil thus comes across as a much healthier and eco-friendly option than conventional peers. Moreover, raising concerns regarding food safety and the environment increases the consumption of organic options and hence boosts the overall demand of coconut oil industry.

What Factors are Fostering Growth of the Global Coconut Oil Market?

• Coconut oil is rich in health benefits, such as supporting heart health, has some properties to support weight loss, and is applied for its antimicrobial effects; this factor encourages its demand from consumers.

• Coconut oil finds applications in a variety of industries, including food, cosmetics, and pharmaceuticals, thus ensuring a wide market base.

• Rising consumer preference towards natural and organic products fuels demand for coconut oil.

• As coconut oil is high in MCTs, therefore they get easily absorbed and provide vast energy, thereby bolstering the growth of the coconut oil market.

What Factors Restrain Global Coconut Oil Market Profitability and Growth?

• The extraction and processing of coconut oil is expensive, and it lowers the margin of profitability.

• Price fluctuations due to the supply conditions of coconuts may affect the stability of the market.

• Some people are allergic to coconut oil, and hence, that can pose a threat to the market.

• The shelf life of coconut oil is somewhat short in comparison with other vegetable oils, making it more susceptible to care during storage and distribution.

• Intense competition from other oils makes market share demanding.

• Cultivation of coconut plants may lead to deforestation, resulting in environmental unsustainability and potential bad effects on the market, hindering the flow of coconut oil market revenue.

• The stringent regulations and quality standards in force across several countries become entry and expansion barriers.

• Economic downturns and fluctuations in the global economy have largely forced consumers to reduce expenditure on high-end products like coconut oil.

What Opportunities are Contributing To Growth of the Global Coconut Oil Market?

• The trend towards organic and natural products opens up immense growth opportunities for organic coconut oil.

• Emerging countries with increasing disposable incomes have new market opportunities.

• New products and applications developed from coconut oil, such as skincare and health supplements, would extend the base of consumers.

• With the growing trends in health and wellness around the world, there can be an enhanced demand for coconut oil as a healthier alternative vis-à-vis other oils.

Coconut Oil Market Regional Analysis

Asia Pacific Region To Dominate The Global Market For The Presence Of Various Coconut Producing Countries

The coconut oil industry in Asia-Pacific region is likely to pull the most significant demand for coconut oil. The growth in demand could be triggered by the presence of the large coconut-producing countries in the region, such as the Philippines and Indonesia, where the oil finds its uses both in rooted culinary traditions and local industries. Additionally, disposable incomes are increasing in countries like India and China, while health consciousness fuels demand in the region for coconut oil as a versatile ingredient used in both food and personal care products. This upward trend in demand is also further supported by the existing installed production capacity in the region.

Competitive Landscape

Key players in the coconut oil market strive to enhance the quality of products, increase their presence in markets through innovation and sustainability, and meet the growing demand from consumers seeking organic and ethically sourced options.

Cargill Inc., founded in 1865 and headquartered in Minneapolis, Minnesota, utilises its extensive global distribution network to ensure the widespread availability of its coconut oil products across various markets. The company is committed to sustainable and ethical sourcing practices, focusing on minimising environmental impact and supporting local farming communities. Cargill also invests significantly in research and development to create new applications and enhance the functionality of coconut oil in both food and non-food industries.

Archer Daniels Midland (ADM) Company, established in 1902 and headquartered in Chicago, Illinois, enhances its global market presence through strategic acquisitions and partnerships, which bolster its supply chain capabilities. ADM is dedicated to sustainable agricultural practices and innovative processing technologies to maintain high-quality, ethical production. The company incorporates coconut oil into a diverse range of food and industrial applications, leveraging its extensive product portfolio to meet varied customer needs.

Bunge Limited, founded in 1818 and based in St. Louis, Missouri, capitalises on its robust global sourcing and distribution network to ensure a consistent supply and expand into new markets. The company is committed to sustainable sourcing practices, aiming to minimise environmental impact while supporting local communities. Bunge focuses on product innovation, developing new formulations and applications for coconut oil, particularly in the food, personal care, and biofuel industries.

Adams Group, established in 1987 and headquartered in Dallas, Texas, operates with a vertically integrated business model that oversees the entire production process to ensure quality control and efficiency. The company invests in developing strong, recognizable brands for its coconut oil products, which enhances market visibility and consumer trust. Adams Group prioritises research and development to explore new uses and benefits of coconut oil, staying ahead of market trends and consumer demands.

The Coconut Company, founded in 2005 and based in London, UK, emphasises organic certification to appeal to consumers seeking high-quality, natural products free from chemicals and additives. The company diversifies its product line to include a range of coconut-based items, such as coconut oil and sugar, addressing various consumer needs. The Coconut Company is committed to sustainable sourcing practices, working directly with farmers to ensure fair trade and eco-friendly production processes.

Other key players profiled in the global coconut oil market report are Tantuco Enterprises, Inc., CIIF OMG, Royce Food Corporation and Mangga Dua, among others.

Key Highlights of the Report

Coconut Oil Market Report Snapshots

Coconut Oil Market Size

Coconut Oil Market Growth

Coconut Oil Market Trends

Coconut Oil Market Share

Coconut Oil Companies

Coconut Oil Market Regional Analysis