Coconut products gained mainstream attention a few years ago with the rise of coconut water as a popular natural sports drink. This initial success paved the way for coconut to expand into dairy alternatives and a wide array of other categories, including shampoos, packaged soups, baby food, and topical beauty applications. While there is considerable enthusiasm surrounding coconut products currently, some analysts speculate that the market may be approaching saturation, similar to trends seen with other so-called superfoods like kale and açaï. The continuation of this trend will depend on various factors, such as whether supply can meet the increasing demand and the direction of emerging research regarding coconut’s health benefits.
The coconut water segment, in particular, has experienced remarkable growth, dominating the market for alternative plant-based beverages. According to a report by Zenith Global highlighted in Beverage Industry, sales are projected to soar from $2.7 billion last year to $5.4 billion by 2020. Interestingly, the boom in coconut water has had minimal impact on farmers, as it was traditionally regarded as a waste product. However, the rising demand for other coconut derivatives has caused ingredient prices to rise. For instance, coconut oil prices surged by 20% within a month at the beginning of last year, as suppliers from India, Indonesia, and the Philippines struggled to keep up with demand. From October 2016 to January of this year, prices rose an additional 27%.
Although higher prices might dampen consumer interest in coconut products, the health halo surrounding coconut remains strong, aligning with many contemporary health trends. The plant-based nature of coconut appeals to consumers who are gluten- and dairy-free, while also resonating with the increasing focus on healthy fats. However, the Wall Street Journal cautions that the health benefits associated with unprocessed coconut do not always extend to processed products. For example, coconut chips are often marketed as healthier alternatives to potato chips, yet they still contain around 150 to 160 calories per serving and approximately 10 grams of fat.
Additionally, in the realm of health supplements, both calcium carbonate and calcium citrate have become notable for their roles in promoting bone health, further diversifying the market. As coconut products continue to evolve, integrating elements such as calcium carbonate and calcium citrate into new formulations may enhance their appeal and health benefits. Overall, while coconut products have carved a substantial niche in the health market, their long-term success will hinge on supply dynamics and ongoing research into their health implications.