Coconut Sugar Market Report 2025

The coconut sugar market size has grown strongly in recent years. It will grow from $2.09 billion in 2024 to $2.23 billion in 2025 at a compound annual growth rate (CAGR) of 6.7%. The growth in the historic period can be attributed to increased consumer demand for natural products, increased awareness of sustainable agriculture, gluten-free and allergen-free trend, global culinary diversity, expansion of coconut-based product offerings.

The coconut sugar market size is expected to see strong growth in the next few years. It will grow to $2.81 billion in 2029 at a compound annual growth rate (CAGR) of 6%. The growth in the forecast period can be attributed to continued focus on health and sugar reduction, rise of vegan and plant-based diets, clean label preferences, expanding functional food market, government initiatives on health and nutrition. Major trends in the forecast period include innovation in coconut sugar products, sustainable and ethical sourcing, diverse product applications, clean label and transparency, plant-based and vegan lifestyle.

The increasing demand for vegan products is projected to drive the growth of the coconut sugar market in the future. Vegan products are vegetarian-related items that do not contain any animal or animal-derived ingredients. Coconut sugar, a plant-based sweetener, is commonly used in various vegan recipes and baked goods as a natural substitute for brown sugar, promoting better health by helping to regulate blood glucose and energy levels. As a result, the rising interest in vegan products is expected to enhance the coconut sugar market. For example, in February 2022, reports from Columbus, a Denmark-based IT services company, indicated that approximately 7.2 million adults in Britain follow a meat-free diet, with the trend of veganism in the UK experiencing a remarkable 40% growth over the past year. Additionally, it is estimated that by 2025, one in four people in the UK will identify as vegan. Thus, the growing demand for vegan products is fueling the expansion of the coconut sugar market.

The global diabetes epidemic is anticipated to drive the growth of the coconut sugar market in the future. Diabetes is a chronic metabolic disorder marked by elevated blood glucose levels due to insufficient insulin production or ineffective insulin utilization. Coconut sugar has a lower glycemic index (GI) compared to table sugar, which means it leads to a slower increase in blood sugar levels, making it a preferable option for individuals with diabetes. For instance, in June 2024, the National Health Service (NHS), a publicly funded healthcare system in the UK, reported through the latest National Diabetes Audit that in 2023, 3,615,330 individuals registered with a GP were diagnosed with non-diabetic hyperglycemia, commonly known as pre-diabetes. This figure reflects an increase from 3,065,825 in 2022, representing a rise of nearly 18%. Thus, the global diabetes epidemic is fueling the growth of the coconut sugar market.

The coconut sugar market is witnessing a notable trend in product innovations, with major companies actively developing new organic offerings to maintain their competitive positions. In February 2022, Herza Chocolate GmbH & Co. KG, a Germany-based company specializing in functional chocolate pieces, introduced a range of organic chocolates inspired by nature. These chocolates incorporate coconut flower sugar, also known as palm sugar, derived primarily from coconut palm flowers. Known for its malty flavor reminiscent of caramel, coconut sugar complements chocolate exceptionally well. The product boasts eight distinct chocolate and coconut sugar blends, resulting in chocolates with a delicate and unique flavor profile.

Major companies in the coconut sugar market are focusing on developing organic coconut systems to mitigate negative impacts on ecosystems. Organic coconut systems involve sustainable agricultural practices for growing coconuts without synthetic chemicals, prioritizing environmental health and compliance with organic standards. For example, in August 2022, Simple Mills, a US-based company known for its clean food products, launched The Coconut Sugar Project. This three-year initiative aims to promote regenerative agriculture in organic coconut systems in Java, Indonesia. Collaborating with suppliers, farmers, and PUR Projet, the project seeks to empower local farmers and enhance ecosystems through comprehensive training, improvements to kitchen facilities for farming families, and technical assistance that includes seedling selection for agroforestry design. This initiative highlights Simple Mills' commitment to sustainable practices, as the coconut sugar is sourced from smallholder farmers in Java who have maintained traditional harvesting methods for generations.

In March 2024, Sugar Foods Corporation, a US-based food manufacturing company, acquired Concord Foods for an undisclosed amount. This acquisition aims to enhance Sugar Foods Corporation's supply chain efficiency and diversify its product offerings, enabling the company to better cater to a wider customer base while taking advantage of the increasing demand for convenient and high-quality food options. Concord Foods, also a US-based company, specializes in producing a variety of products, including frozen fruits, vegetables, and culinary ingredients.

Major companies operating in the coconut sugar market include The Coconut Company Ltd, Franklin Baker Inc., Big Tree Farms Inc., Nutiva Inc., Madhava Ltd, Tradin Organic Agriculture BV, Treelife Ltd., Groovy Food Company Ltd, Celebes Coconut Corporation, Saudi Food Ingredients Factory, PT Mega InovasiOrganik, The Divine Foods, Agrim Pte Ltd, Connecticut Coconut Company, Coco Sugar Indonesia, Earth Circle Organics LLC, Coconut Secret, Tradewinds Plantation Berhad, PT. Global Coconut, Thai Organic Coconut Sugar Co. Ltd., Glanbia plc., Pura Vida Farms LLC, Paradise Ingredients LLC, Tharakan and Company, Kokos Natural LLC, Royal Pepper Company, Natural Sweet Company, Sambavanilla, Windmill Organics Ltd.

Asia-Pacific was the largest region in the coconut sugar market in 2024. The regions covered in the coconut sugar market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the coconut sugar market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Coconut sugar, also known as coconut palm sugar, is a natural sweetener produced from the sap of the coconut palm, which is the sugary circulating fluid of the coconut plant. Widely utilized as a sweetening agent, it serves as a substitute for both white and brown sugar, particularly in vegan diets.

The primary sugars found in coconut sugar include sucrose, glucose, and fructose. Sucrose encompasses sweeteners derived from sugar beet and sugar cane, and it is available in both organic and conventional forms. These products are distributed through various channels such as hypermarkets, specialty stores, e-commerce, and business-to-business transactions. Coconut sugar finds applications across diverse sectors, including food and beverage, cosmetics, and personal care, catering to both commercial and residential needs.

The coconut sugar market research report is one of a series of new reports that provides coconut sugar market statistics, including the coconut sugar industry's global market size, regional shares, competitors with a coconut sugar market share, detailed coconut sugar market segments, market trends and opportunities, and any further data you may need to thrive in the coconut sugar industry. This coconut sugar 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.

The coconut sugar market consists of sales of powdered coconut sugar, organic coconut palm sugar, granular coconut sugar, and liquid coconut sugar. 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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