Coconut Milk Market - Forecasts from 2022 to 2027

Coconut milk is a milk-like white and opaque liquid made from the grated pulp of ripe coconuts. Coconut milk's opacity and rich flavor are due to its saturated fat in the form of high oil content.

Drivers

The coconut milk market is expected to grow with the rising demand for plant-based products around the world.

Consumers are increasingly gravitating toward plant-based products, as they are healthier and safer than animal-based products. People worldwide are following vegan diets owing to the rising awareness among people and shifting lifestyles. As a result, companies use plant-based milk in various pastry and confectionery products. The Scottish Government stated in February 2021 that plant-based milk replacements would soon be available in a government-funded early learning milk initiative and nursery. Veganism has become more popular as people have become more concerned about animals and the environment. The worldwide demand for coconut milk is attributable to the growth of natural food products and consumer preference for a vegan diet.

Adoption of coconut milk in several food recipes due to the rising prevalence of lactose intolerance.

Lactose intolerance has become a major concern in the food and beverage sector, increasing lactose-free milk consumption globally. Lactase is absent in plant-based milk, which does not cause allergic reactions. The Plant-Based Foods Association stated that plant-based milk sales increased by 5% in 2020 in the United States compared to 2019. Companies are also taking advantage of this opportunity to introduce new products to the market.

Restraints

Due to the difficulty of scaling up coconut tree production, manufacturing is expected to be sluggish in the projected period. Coconut farming is mostly dependent on climatic circumstances. Global climatic conditions are changing rapidly due to pollution and the greenhouse gas effect. As a result, the coconut milk market's growth may be hampered in the near future by the frequent adverse weather conditions, especially in Asian countries. Hence, producers must rely on creative solutions to make the most of the present supply and profit from the spike in demand.

Key Developments

Epigamia launched a new range of plant-based yogurt produced with coconut milk in India in June 2020. Coconut Jaggery and unsweetened are the two flavors available. Both are probiotic-rich, have a creamy texture, and are free of preservatives. Kite Hill introduced two new products, Kite Hill Blissful, a creamy and thick coconut milk-based yogurt line, and Kite Hill Sour Cream Alternative, a plant-based sour cream created with almond milk and coconut, in March 2020.

By nature, the coconut milk market can be segmented into conventional and organic categories.

The conventional sector dominates the coconut milk market. However, the demand for the organic sector is increasing due to the growing popularity of pesticide-free and chemical-free clean label products globally.

By form, the coconut milk market can be segmented into powder and liquid categories.

Owing to wide incorporation in drinks due to easier availability, the liquid segment is expected to hold the largest market share. However, the powder segment is gaining traction due to ease in storing and extended shelf-life.

By distribution channels, the coconut milk market can be segmented into hypermarkets and supermarkets, online retail, convenience stores, specialty merchants, and others.

Supermarkets and hypermarkets account for a sizable portion of the market and are expected to rise over the projected period owing to the global expansion of the organized retail sector. Convenience stores have acquired a substantial share in the market.

By geography, the coconut milk market can be segmented into these five regions, Asia Pacific, North America, South America, the Middle East and Africa, and Europe.

The trade operations of plant-based products between major Asian countries have increased significantly, leading the Asia Pacific region to dominate the market. Indonesia, Thailand, Sri Lanka, and the Philippines are the top exPorter's of coconut-based products. Europe, on the other hand, is expected to develop rapidly, owing to the growing use of this milk in a variety of pastry products such as cookies, cakes, and pies.

COVID-19 Insights

The COVID-19 epidemic impacted the coconut milk market significantly. Lockdown regulations imposed by the Government around the world resulted in disruptions of raw material transit and an increase in pricing. Furthermore, the interruption in the supply chain is to blame for the drop in growth. Furthermore, due to global lockdown and social isolation, the production of coconut and coconut milk, as well as their processing, came to a standstill. As a result, coconut and related product manufacturers could not continue their operations. As a result, the market likely suffered during the pandemic. Coconut milk used to be the third most famous plant-based source, but it fell to the fourth position in 2019 behind oat milk, with a 7% CAGR fall according to Nutritional outlook.

Market Segmentation:

By Nature

• Organic
• Conventional

By Form

• Liquid
• Powder

By Distribution Channel

• Hypermarkets and Supermarkets
• Convenience Stores
• Speciality merchant
• Online Retails
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Italy
• Others
• Middle East and Africa
• Saudi Arabia
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Thailand
• Taiwan
• Others