The veganism trend has been on a remarkable upswing for several years as individuals become increasingly health-conscious. Sedentary lifestyles have given rise to health issues like diabetes, obesity, and cardiovascular disorders. This surge in health concerns has led to a growing preference for wholesome, nutrient-rich foods that aid in weight management and fulfill daily nutritional needs. Apart from adhering to regular diets, people are gravitating toward vegan food items due to their inherent health benefits. Vegan foods offer advantages such as weight reduction, lower fat content, improved blood circulation, and optimal body pH levels. Additionally, these products are rich in fiber, essential minerals, and vitamins necessary for cellular growth. The shift towards plant-based foods, particularly coconut products, is becoming more evident as individuals distance themselves from meat products, thereby bolstering the vegan movement. According to the Vegetarian Resource Group, over 2% of the United States population is now vegan, and this percentage is projected to rise further. With the escalating popularity of veganism and the surge in demand for vegan diets, the global coconut products market is poised for substantial growth.
Rising Sales of Plant-Based Food Products to Drive Coconut Products Market Growth
The proliferation of dairy alternatives due to the surge in veganism continues to drive the expansion of the coconut products market. This phenomenon can be attributed to several factors, including a negative perception of animal-derived products, a desire for healthier and more diverse food choices, and an increasing emphasis on taste. Additionally, the rise of health-promoting, low-calorie foods is boosting the consumption of plant-based products, a trend propelled by the surge in flexitarian consumers globally. According to the Institute of Food Technologists, over 36% of the U.S. population identifies as flexitarian, a number that is projected to rise on a global scale. This demographic leans towards plant-based foods due to their health benefits and nutritional value. As evidence of this shift, the sales of plant-based products have surged significantly, with the U.S. Plant-Based Foods Association reporting a 6.2% growth in retail sales in 2021, reaching a value of $7.4 billion. The association predicts a 54% growth in the U.S. over the next three years. This trend signals a promising future for plant-based products, thereby catalyzing the growth of the coconut products market.
Coconut Derivatives in Skincare and Cosmetics Drive Market Growth
Beyond their dietary advantages, the coconut products market is also being driven by the use of coconut derivatives in skincare and cosmetic applications. Cosmetic creams are increasingly incorporating coconut products due to their perceived benefits. Among these, coconut oil stands out as a highly sought-after ingredient in the production of skincare and cosmetic lotions. Data from the United States Department of Agriculture and Foreign Agricultural Services (FAS) reveals that coconut oil consumption in skincare and cosmetics has risen from 1.5 million metric tonnes to 1.79 million metric tonnes. This is attributed to the functional properties of coconut oil, which include anti-aging, anti-bacterial, and antioxidant capabilities. Given these attributes, the demand for coconut derivatives in the cosmetic sector is experiencing rapid growth, contributing significantly to the expansion of the coconut products market.
High Demand for Young Coconut Derivatives Boosts Market Growth
Coconuts can be classified into two categories: mature coconuts and young coconuts. Historically, mature coconuts have enjoyed higher sales due to their affordability and higher flesh content. However, the demand for young coconuts has surged in recent years due to their health benefits. Young coconuts are especially popular for their refreshing liquid, known as coconut water. These coconuts have softer, thinner flesh and are becoming increasingly sought after. This trend suggests that young coconut sales might surpass those of mature coconuts, driven by the perceived benefits of coconut water. This shift is expected to drive the demand for young coconut products and derivatives, further contributing to the growth of the coconut products market.
Asia Pacific Poised for Dominance in the Coconut Products Market
The Asia Pacific region, with its emerging economies, is anticipated to dominate the sales of coconut products. This is primarily due to the increasing consumer demand for coconut derivatives such as coconut milk, coconut water, coconut oil, and coconut milk powder, driven by their numerous health benefits. The region is also a major hub for coconut production, with India leading the way. According to the India Brand Equity Foundation (IBEF), India accounts for over 31.45% of global coconut production as of 2022. This production surge creates a favorable environment for the extraction of coconut derivatives. The region's growing demand and supply for coconuts further augments the growth prospects of the coconut products market. Other macroeconomic factors contributing to this growth include a sizable consumer base, stable GDP per capita growth, a rise in end-use industries, and an expanding vegan population.
Competitive Landscape of the Coconut Products Market
Several key players contribute to the coconut products market's competitive landscape. These include Zico Beverages, PT. Pulau Sambu, Ducoco Alimentos SA, Coco Do Vale, The Vita Coco Company Inc., McCormick & Company Inc., DANONE SA, and Agrim Pte Ltd.
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