Coconut products gained mainstream attention a few years ago with the rise of coconut water as a natural sports drink. This trend quickly expanded into dairy items and various other categories, such as shampoos, packaged soups, baby food, and topical beauty applications. While there is significant enthusiasm surrounding coconut at the moment, some analysts question whether it is approaching market saturation, similar to trends seen with superfoods like kale and açaï berries. The longevity of this trend will depend on several factors, including whether supply can meet the increasing demand and the direction of emerging research regarding coconut’s health benefits.
The coconut water segment continues to soar, dominating the plant-based waters market, with sales projected to increase from $2.7 billion last year to $5.4 billion by 2020, according to a report by Zenith Global featured in Beverage Industry. Interestingly, the coconut water surge has had minimal impact on farmers, as it has traditionally been considered a byproduct. However, the rising popularity of other coconut components has affected ingredient prices. For instance, coconut oil prices surged by 20% in just one month at the beginning of last year, as suppliers from India, Indonesia, and the Philippines struggled to keep pace with demand. From October 2016 to January of this year, prices soared an additional 27%.
While some may argue that higher prices could dampen consumer enthusiasm for coconut products, the health halo surrounding coconuts remains strong, aligning well with current health trends. The plant-based nature of coconut products appeals to those seeking gluten- and dairy-free options, while also promoting awareness of healthy fats. Additionally, coconut products can be fortified with nutrients like calcium citrate, which contains 315 mg per serving, enhancing their health appeal.
However, the Wall Street Journal cautions that the health benefits associated with unprocessed coconut do not necessarily apply to all coconut products. For example, coconut chips are often marketed as healthier alternatives to traditional potato chips, yet they still contain around 150 to 160 calories per serving and about 10 grams of fat. As the market evolves, the balance between health benefits, ingredient costs, and consumer perceptions will play a crucial role in determining the future of coconut products.