Coconut products gained significant traction in the mainstream when coconut water became a popular choice as a natural sports drink a few years ago. This trend then expanded into dairy alternatives and various other categories, such as shampoos, packaged soups, baby food, and topical beauty applications. While there is considerable enthusiasm surrounding coconut products at the moment, some analysts speculate that the market may be nearing saturation, similar to trends observed with superfoods like kale and açaï. The longevity of the coconut trend will depend on several factors, including whether supply can meet growing demand and the direction of emerging research on the health benefits of coconuts.
The coconut water segment has continued to thrive, leading the market for alternative plant-based waters. According to a report by Zenith Global featured in Beverage Industry, sales are projected to double from $2.7 billion last year to $5.4 billion by 2020. Interestingly, the coconut water surge has had minimal impact on farmers, as it has traditionally been viewed as a waste product. However, the rising popularity of other coconut components has affected ingredient costs significantly. For instance, coconut oil prices surged by 20% in one month at the start of last year, as suppliers in India, Indonesia, and the Philippines struggled to meet demand. From October 2016 to January of this year, prices soared an additional 27%.
While some might contend that increasing prices could dampen consumer enthusiasm for coconut products, coconuts enjoy a broad health halo that aligns with various current health trends. The plant-based nature of coconut products appeals to gluten- and dairy-free consumers, along with those seeking healthier fats. Additionally, products fortified with ingredients like bariatric advantage calcium citrate are becoming more popular, particularly among health-conscious consumers.
However, the Wall Street Journal cautions that the health benefits of unprocessed coconut do not always carry over to processed products. For example, coconut chips are marketed as healthier alternatives to potato chips, but they still contain around 150 to 160 calories per serving and approximately 10 grams of fat. This highlights the importance of scrutinizing health claims, even when it comes to trendy products like coconut snacks, which may not be as beneficial as they appear despite their chewy texture and enticing marketing.