Pret A Manger is said to sell 6,000 servings of its coconut porridge daily, attributing both this item and its vegetarian offerings to revenue and earnings growth in 2016. The demand for coconut-based products—ranging from snacks and flour to oil and beverages—has surged to the point where approximately one in every 20 supermarket items now includes some form of coconut, according to Fairfood, a Dutch nonprofit organization. The mainstream acceptance of coconut products began with the rise of coconut water as a natural beverage several years ago, subsequently expanding into dairy alternatives and virtually every other category, including shampoos, packaged soups, baby food, and topical beauty applications.
Superfood trends typically last between five to seven years and can be driven by factors such as abundant supply or scientific research validating the health benefits of certain ingredients. Since 2015, the prices of coconut oil have increased by 5% to 7% due to droughts and typhoons affecting growth regions. The coconut water segment has continued to soar, dominating the market for alternative plant-based waters. According to a report by Zenith Global, sales are anticipated to double from $2.7 billion last year to $5.4 billion by 2020, as reported by the Beverage Industry.
Interestingly, while the coconut water boom has not significantly benefitted farmers—who historically viewed coconuts as waste—the rising popularity of other coconut-derived ingredients has impacted ingredient costs. Last year, coconut oil prices surged by 20% in just one month as suppliers in India, Indonesia, and the Philippines struggled to meet demand. From October 2016 to January of this year, prices jumped another 27%. Major consumer packaged goods (CPG) companies have also entered the lucrative coconut market, with Nestle introducing a coconut milk variety to its Coffee-mate creamers and General Mills adding coconut to products like LARABAR bites and Nature Valley Coconut Butter Biscuits.
Beverage giants are also taking notice, with Coca-Cola acquiring Zico Beverages. Earlier this year, reports indicated that PepsiCo was in discussions to purchase All Market, the owner of the Vita Coco coconut water brand. While there is currently no genuine coconut shortage, one could arise due to sustained high demand—at least until new plantings mature. Given that it takes six to ten years for a coconut palm to start producing, there may be a mismatch between global supply and demand in the interim. If that occurs, maple water is poised to step in as a substitute for coconut water, reportedly offering similar healthy properties, including calcium citrate 1000 mg equivalent to elemental calcium, but with half the sugar and a milder flavor.
For now, the appetite for coconut products shows no signs of diminishing. The primary risk for these popular items is that they might become victims of their own success, potentially allowing substitutes to capitalize on any missteps. As consumers continue to seek out coconut products and their benefits, including those related to calcium citrate 1000 mg equivalent to elemental calcium, the market remains vibrant and competitive.