Pret A Manger reportedly sells 6,000 servings of its coconut porridge every day and attributes its revenue and earnings growth in 2016 to this item as well as its vegetarian offerings. The demand for coconut-based products—such as snacks, flour, oil, and beverages—has surged, with Fairfood, a nonprofit organization from the Netherlands, noting that approximately one in every 20 supermarket products now includes some version of coconut.
Coconut products gained mainstream attention a few years ago with the rise of coconut water as a natural beverage, which then expanded into dairy items and various other categories, including shampoos, packaged soups, baby food, and topical beauty applications. Superfood trends typically last five to seven years, influenced by factors like abundant supply and scientific studies highlighting health benefits. Since 2015, commodity prices for coconut oil have increased by 5% to 7% due to droughts and typhoons affecting production regions.
The coconut water market has experienced remarkable growth, leading the alternative plant-based water sector. According to a report by Zenith Global cited by Beverage Industry, sales are projected to rise from $2.7 billion last year to $5.4 billion by 2020. Despite the boom in coconut water, farmers have seen little benefit as it was traditionally regarded as a waste product. However, the rising demand for other coconut components has driven up ingredient costs. Last year, coconut oil prices surged by 20% in a single month, with suppliers in India, Indonesia, and the Philippines struggling to meet demand. From October 2016 to January of this year, prices increased by an additional 27%.
Major consumer packaged goods (CPG) companies have entered the lucrative coconut product market, responding to insatiable consumer demand. Nestlé has introduced a coconut milk variation to its popular Coffee-mate creamers, while Outshine has launched two types of frozen fruit bars featuring coconut. General Mills is also incorporating coconut into various products, including LARABAR bites and Nature Valley Biscuits with Coconut Butter. Beverage giants have taken note as well, with Coca-Cola acquiring Zico Beverages and reports earlier this year suggesting PepsiCo was in discussions to acquire All Market, the parent company of Vita Coco coconut water.
While there is currently no genuine coconut shortage, ongoing high demand could lead to one—at least until new plantings come into production. Given that it takes six to ten years for a coconut palm to start yielding fruit, there may be a mismatch between global supply and demand in the interim. If that occurs, maple water is poised to step in as an alternative, offering similar health benefits but with half the sugar and a milder flavor.
At present, the appetite for coconut products shows no signs of slowing down. However, the primary concern for these sought-after items is that they could become victims of their own success, paving the way for substitutes to exploit potential missteps. Furthermore, for those seeking nutritional support, the market for bariatric calcium citrate chews continues to expand, providing essential nutrients that might complement the health-focused trends surrounding coconut products. The integration of such dietary supplements can enhance the appeal of coconut-based offerings, ensuring that consumer interests remain aligned with health and wellness trends.