Coconut Oil Market Report 2025

The coconut oil market size has grown strongly in recent years. It will grow from $5.03 billion in 2024 to $5.49 billion in 2025 at a compound annual growth rate (CAGR) of 9.2%. The growth in the historic period can be attributed to culinary usage, health and wellness, cosmetic and personal care applications, non-gmo and organic option, traditional and cultural practice.

The coconut oil market size is expected to see strong growth in the next few years. It will grow to $7.61 billion in 2029 at a compound annual growth rate (CAGR) of 8.5%. The growth in the forecast period can be attributed to plant-based and vegan diets, functional food and beverage, clean beauty and natural cosmetic, sustainable sourcing and production, medical andTherapeutic applications. Major trends in the forecast period include mct oil popularity, coconut-based dairy alternatives, hair and scalp treatments, aromatherapy and wellness oils, customizable coconut blends.

The rising demand for personal care and cosmetic products is anticipated to drive the growth of the coconut oil market in the coming years. Personal care and cosmetic products encompass a wide variety of consumer items applied to different external areas of the body, including the skin, hair, nails, lips, external genital and anal regions, teeth, and mucous membranes. Coconut oil serves as a natural moisturizer, effectively hydrating and nourishing the skin and hair. It is commonly used in lotions, creams, and hair conditioners to deliver deep hydration and enhance the texture of both skin and hair. For example, in 2023, Cosmetics Europe, a Belgium-based personal care association, reported that 500 million consumers use personal care products daily to promote their well-being and safeguard their health. Furthermore, the personal care industry contributes approximately $31.23 billion (€29 billion) annually to the European economy. Consequently, the increasing demand for personal care and cosmetic products is propelling the growth of the coconut oil market.

The increasing prevalence of hair loss is expected to drive the growth of the coconut oil market in the coming years. Coconut oil primarily consists of a medium-chain fatty acid known as lauric acid, which provides a long, straight structure that is more easily absorbed deep into the hair shaft. Additionally, coconut oil can enhance hair and scalp health, potentially making hair appear to grow faster. For example, in November 2022, the American Hair Loss Association, a US-based nonprofit and consumer organization, reported that androgenetic alopecia, or common male pattern baldness (MPB), accounted for over 95% of hair loss in men. By the age of 35, two-thirds of American men will experience some level of noticeable hair loss, and by the age of 50, approximately 85% of men will have significant thinning of their hair. Therefore, the rising prevalence of hair loss is propelling the growth of the coconut oil market.

A key trend in the coconut oil market is the strategic partnership between companies. Collaborations between coconut oil companies and other entities enable the leveraging of resources for mutual expansion into new markets. For example, CocoTherapy, a US-based provider of organic virgin coconut and MCT oil brands for pets, entered into a partnership with Matrix Partner in April 2022. This collaboration aims to generate engaging content and advertisements for CocoTherapy's target audience. Matrix Partners, with its expertise in managing social media platforms for pet brands, will contribute to expanding CocoTherapy's presence on Facebook. This strategic partnership exemplifies the trend of companies joining forces to enhance their reach and engagement with consumers in the coconut oil market.

Major companies in the coconut oil market are actively introducing new products and solutions, leveraging technologies like cold press technology to enhance their market presence and revenue. Cold press technology, characterized by the extraction of coconut oil from coconut milk without heat, offers a gentle process that preserves the oil's nutrients and antioxidants. This approach aligns with consumer preferences for natural and minimally processed products. An example of such innovation is seen in Dabur India Ltd.'s launch of Virgin Coconut Oil in February 2022. This product, derived from coconuts using cold press technology, maintains the coconut's natural sweetness, essential nutrients, scent, and flavor. The oil contains medium-chain triglycerides (MCTs), known for aiding in energy release, quick digestion, and potential benefits in weight management and metabolism regulation.

In September 2024, Century Pacific Food, Inc. (CNPF), a food company based in the Philippines, acquired a 100% stake in Coco Harvest Inc. for $40 million. This acquisition is intended to boost CNPF's production capacity for coconut-based products and is expected to generate over 1,500 manufacturing jobs while improving market access for local coconut farmers. Coco Harvest Inc. is a Philippines-based company that produces coconut water, milk, desiccated coconut, and virgin coconut oil.

Major companies operating in the coconut oil market include Archer Daniels Midland Company, Greenville Agro Corporation, Libra Bioscience Pvt Ltd., Bunge Ltd., Cargill Incorporated, Wichy Plantation Company (Pvt) Ltd., Adani Group, Windmill Organics Ltd., Hain Celestial Group Inc., PT. Harvard Cocopro, Royce Food Corporation, Marico Ltd., Nutiva Inc., Dr. Bronner's, Kirkland's Inc., Golden Barrel, Spectrum Essentials, Dignity Coconuts, Harin Bio-Tech International Private Limited, Sakthi Exports, Aluan, Bo International, Shree Western G & C Ind., Jiangxi Planty Manor Health Industry Co. Ltd., HanCole Group, NMK Holdings Private Limited, K.K.P.Industries, Manchiee De Coco, Nature Pacific Pty Ltd., Cocomate, Genius Nature Herbs Pvt Ltd., Keratech Coconut Oil Pvt Ltd., Jedwards International Inc., Sun Bionaturals (India) Private Limited, Pureoilsindia, Nature's Oil, Cornitos, KPL Oil Mills (P) Ltd.

Coconut oil is derived from the fruit of the tropical coconut palm tree (Cocos nucifera) and is known for its richness in saturated fat, making it exceptionally stable and resistant to oxidation and rancidity. It finds diverse applications, believed to contribute to reducing belly fat, preventing heart disease, suppressing appetite, strengthening the immune system, and potentially offering protective effects against dementia and Alzheimer's disease.

The primary product types of coconut oil include virgin coconut oil and coconut RBD oil. Virgin coconut oil is characterized by being unrefined, cold-pressed, and not subjected to processes like bleaching, hydrogenation, or deodorization. It retains a faint coconut flavor compared to the more intense flavor of regular coconut oil. These oils are available in mass and premium segments and are distributed through various channels, including direct distribution, convenience stores, modern trade units, e-commerce, among others. The usage of coconut oils spans across industries such as the food industry, agriculture, cosmetics & personal care industry, chemical industry, and others. Its versatility makes it a valuable ingredient in various products and applications within these sectors.

The coconut oil market research report is one of a series of new reports that provides coconut oil market statistics, including coconut oil industry global market size, regional shares, competitors with a coconut oil market share, detailed coconut oil market segments, market trends and opportunities, and any further data you may need to thrive in the coconut oil industry. This coconut oil market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Western Europe was the largest region in the coconut oil market in 2024. The regions covered in the coconut oil market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the coconut oil market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and USA.

The coconut oil market consists of sales of virgin coconut oil, desiccated coconut, coconut milk, coconut skimmed milk. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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