North America Coconut Products Market Outlook, 2029

Sodium, iron, calcium, magnesium, phosphorus, selenium, and other minerals are among the many nutrients found in coconuts, along with high levels of fibre, vitamins C, E, B1, B3, B5, and B6. Product derivatives or extracted from coconuts, or coconut goods, have been shown to support blood sugar regulation, enhance cognitive performance in Alzheimer's patients, and improve cardiovascular health. In addition to its numerous health benefits, coconut water promotes renal health, protects the heart, hydrates the body after exercise, helps control blood pressure, and manages diabetes. Over the course of the projection period, the North American market for coconut products is anticipated to develop at the fastest rate.

The primary factors contributing to the market expansion in this area are the increasing propensity of consumers toward healthier food options and ingredients like coconut goods. People have become more aware of their food intake and diet in nations like the US, Canada, and Mexico. The growing popularity of coconut products in North America is further supported by the rising demand for coconut milk, cream, and water in alcoholic beverages. The main markets in the area are the US, Canada, and Mexico.

According to the research report 'North America Coconut product Market Outlook, 2029', the North America Coconut product Market was valued more than USD 4.5 billion in 2023. Due to the growing demand for coconut products, the North American market is the largest. Consumers' growing allergy to lactose helps producers of dairy substitutes like coconut milk and cream. According to information from the National Institute of Diabetes and Digestive and Kidney Diseases, around 36% of Americans suffer with lactose malabsorption.

This is driving the coconut milk and cream business. The Mexican market is being driven by the ready-to-drink coconut milk category, as consumers become more health-conscious and the high-sugar beverage products are facing stiff competition. According to figures from the International Diabetes Federation, Mexico will have 14 million adult diabetics by 2021 - a 10% increase in only the previous two years. Customers are being pushed toward healthier beverage options, and among the most popular are coconut drinks.

The processors are also attempting to obtain fair trade certifications for their coconut-based products, which include milk and cream. The demand from the bakery, confectionery, and other sectors is being driven by the growing acceptance of powdered forms as one of the more affordable substitutes, with a longer shelf life for coconut milk. The renowned Organic Coconut Water was introduced in the Costco Western Canada Region in February 2022 as part of Harmless Harvest's expansion into Canada as a producer of organic food and beverage goods derived from coconuts.

Major Drivers

The growing demand for organic and natural products: Organic and natural products have become an integral component of market expansion in the coconut products market, as consumers seek healthier and more environmentally-friendly options. Organic coconut products in particular have gained momentum due to their perceived purity and environmental friendliness - satisfying consumer desire for clean eating with responsible sourcing initiatives while propelling market expansion.

Increased Adoption of Flexitarian and Vegan Diets Fuels Market Growth for Coconut Products: In the upcoming years, the growing popularity of vegan and flexitarian diets is expected to propel the expansion of the coconut products market. As demand grows for plant-based commodities like coconut, more people are choosing plant-based diets for ethical, health, and environmental sustainability reasons. Chefs wishing to use plant-based foods like coconut are often drawn to coconut products like oil, milk, and flour because of its nutritional qualities and adaptability in vegan cooking techniques. As a result of this change, the use of coconut products in foodservice establishments and at home has increased dramatically. In an effort to appeal to plant-based consumers, food manufacturers and restaurants are including more and more foods derived from coconuts into their menus.

Increasing Demand for Coconut-Based Skincare and Haircare Products Boosts Market: The market for skincare and haircare products containing coconut oil has grown remarkably as a result of the increase in customer interest. Coconut oil and its derivatives, which are well-known for being nourishing, hydrating, and antimicrobial, have become important ingredients in natural beauty products. As a result, a wider variety of coconut-infused products - from moisturizers and serums to shampoos and conditioners - are now available on store shelves. The growing inclinations of customers have led to an increasing desire for natural and organic personal care products, which has further increased the appeal of coconut-based goods. Coconut is becoming a common component of beauty regimes and is frequently recommended by influencers and beauty professionals due to its reputation as a great 'superfood' for skin and hair health.

Major Challenges

Market Growth Is Limited by Reliance on a Small Number of Major Purchasers:

The reliance of coconut products on a small number of major purchasers limits their market share. Due to the potential for significant market impact from changes in these entities' purchasing habits or preferences, this reliance on a limited number of major customers may create vulnerabilities in the market. Additionally, this dependence may weaken the suppliers' and manufacturers' negotiating positions, which could have an impact on investment in market expansion and profitability.

Growth of the Market Is Restricted by Increasing Competition from Other Plant-Based Products: The market for coconut goods is becoming more competitive due to the growing popularity of other plant-based products. Products made from sources including almonds, oats, and soy milk are directly competing with coconut-based products as customers look for a range of plant-based substitutes for nutritional, health, or environmental reasons. The market for coconut goods may see development prospective challenges due to market share fragmentation brought on by this intensifying rivalry.

Limited Processing Facility Availability Limits Market Expansion:

One major obstacle to the market's growth is the restricted access to facilities for processing coconut goods. Specialized facilities and equipment are needed to process raw coconuts into goods that are ready for the market, such as coconut flour, oil, and milk. A lack of adequate processing facilities makes it difficult to effectively transform raw coconuts into products that can be sold in many coconut-producing locations. This limitation affects the supply chain's overall effectiveness and makes it more difficult for it to satisfy the rising demand for a range of coconut goods around the world.

Based on product type market is divided into Coconut milk & cream, Coconut oil, Coconut water, coconut desiccated /flackes /shredded, other.

Coconut oil is the most popular category among them. It's common to see coconut oil marketed as a healthier alternative to regular cooking oils. It is high in medium-chain triglycerides (MCTs), which are believed to have possible health benefits such as aiding in weight management and acting as a quick source of energy. Coconut oil's many culinary applications have contributed to its popularity. It can be baked, sautéed, or fried, and it can be an ingredient in many different dishes. Coconut oil's mild flavour makes it suitable for use in both savoury and sweet recipes.

Coconut oil has applications outside of the kitchen. It is widely used in the skincare, hair care, and natural moisturizer sectors of the beauty and personal care industries. Studies have demonstrated the positive effects of coconut oil's medium-chain triglycerides (MCTs), especially lauric acid, on cholesterol levels, metabolism, and cognitive function. Many people think coconut oil is a healthier option than typical cooking oils because of its high concentration of saturated fats, sometimes known as 'good fats'.

Since MCTs are easily absorbed and digested, coconut oil is appealing to those with delicate digestive systems. When comparing coconut oil to other coconut products like coconut water or snacks, its longer shelf life and better value per unit cost make it more economical. It's readily available in a variety of formats (organic, virgin, and refined) at most supermarkets and online retailers.

Based on the form type of the market is divided into liquid, solid -Liquid segment is dominating the market.

The liquid segment is really important. Goods derived from liquid coconut are often perceived as being nutritious. In particular, coconut water is thought to be a hydrating and healthful beverage. The electrolyte content and potential for hydration of coconut water, together with its other health benefits, align with consumer expectations for healthier beverage options. The rise in demand for coconut water can be attributed to the introduction of functional drinks like natural and functional waters. When it comes to drinks that offer extra nourishment, coconut water is a lovely and useful choice.

The emergence of functional beverages such as natural and functional waters is responsible for the increase in demand for coconut water. Coconut water is a nice and practical option when it comes to beverages that provide additional nutrition. A variety of drinks with coconut as an ingredient can be found in the liquid category, such as coconut milk, coconut water, and coconut beverages. Customers can choose from a variety of options that suit their dietary needs, tastes, and culinary applications because to this adaptability.

Based on the type of Application the market can be categorized by Food / beverages, Cosmetics, others:

The cosmetics market is dominated. Because of its emollient properties, coconut oil is a popular natural moisturizer for skin and hair. Clean and natural beauty products are getting more and more popular in Canada. Coconut oil is a common ingredient in cosmetics because it is considered a natural, minimally processed option that complements the trend toward ingredient labeling that are plain and unambiguous. Coconut oil is highly versatile and has several applications in the cosmetics sector. It serves as a natural face cleanser, body moisturizer, hair treatment, and makeup remover in addition to being a component in cosmetics. The versatility of coconut oil appeals to consumers looking for adaptable cosmetic solutions.

Based on the type of Stage the market can be categorized by Mature, Young and Based on type of Distribution Channel the market can be categorized by Hypermarket/supermarket, Conventional store, Specialty store, online retail:

Young is the leading segment. Young coconut products can be utilized in a variety of culinary applications, such as salads, smoothies, and desserts. Young coconut meat is especially useful in these applications. These products might be enticing to younger consumers who like to try out new recipes. Supermarkets and hypermarkets typically carry a large range of products, including various items made from coconuts, such as coconut water, oil, milk, and snacks. Thanks to this variety, customers can locate and purchase a wide range of coconut products in one convenient location. Large shelves can be seen in supermarkets and hypermarkets, and manufacturers of coconut products usually get their products displayed prominently.

Coconut products are more likely to be noticed and purchased by customers when they are prominently displayed on shelves and placed thoughtfully within establishments. Because of their extensive distribution, supermarkets and hypermarkets are easily accessible to a large number of individuals. Coconut products are able to satisfy a broad spectrum of consumers due to their widespread availability, which further adds to their dominant market share.

Based on the report the market is divided into three major countries, United States, Canada, and Mexico. Among them United States accounted for largest market share for coconut products in North America.

Based on the report the market is divided various three major countries United States, Canada, Mexico. Among them United States accounted for largest market for coconut product market in North America. Demand for coconut products has surged in the US market as a result of factors such rising interest in plant-based and natural diets among consumers. Products derived from coconuts are extensively used and recognized for their versatility. Snacks, water, oil, and coconut milk are a few of these products.

The health and wellness movement has influenced consumer choices, and coconut goods are often considered healthy alternatives. For example, coconut water is marketed as a nutritious beverage that is hydrating and includes electrolytes, while coconut oil is used in cooking and cosmetics. Plant-based diets and the vegetarian/vegan movement have helped increase the popularity of coconut items because they fit into these diets. Whereas. The Canadian coconut product industry has a promising future with plenty of opportunities for growth and innovation.

Coconut oil is becoming more and more well-liked in Canada as versatile cooking oil and as an ingredient in many different culinary products. Its versatility in the kitchen and purported health benefits are two reasons for its widespread use in Canadian homes. In Canada, coconut water has become more and more popular as a beverage because of its hydrating properties. It is often marketed as a natural and healthy option to sugary drinks, drawing in consumers who are mindful of their health. The main sources of coconut imports into Canada are Vietnam, India, and Sri Lanka.

The coconut products market is characterized by a diverse range of companies, each contributing uniquely to the industry's landscape. The Coconut Company (UK) Ltd. and Vita Coco are recognized for their focus on health-conscious consumers, offering a range of organic and natural coconut products that cater to the growing demand for healthy and sustainable food options. Marico Ltd. and Nestlé S.A. have a significant impact on the market through their extensive distribution networks and broad product portfolios.

Their strategic positioning enables them to cater to a wide consumer base, influencing global consumption patterns. Enature Organic Products and Ayam Sarl emphasize organic and ethically sourced coconut products, aligning with consumer trends towards environmental sustainability and ethical sourcing. Renuka Foods PLC and S & P Industries Sdn Bhd have established strong market presences in Asia, capitalizing on the regional abundance of coconuts and focusing on export markets.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Coconut Products market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type

• Coconut milk & cream
• Coconut oil
• Coconut water
• Coconut desiccated /flacks /shredded
• Other

By Form

• Liquid
• Solid

By Application

• Food / Beverages
• Cosmetics
• Others

By Distribution Channel

• Hypermarket/supermarket
• Conventional store
• Specialty store
• Online retail

By Stage

• Mature
• Young

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Coconut Products industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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