Coconut products gained mainstream attention a few years ago with the surge in popularity of coconut water as a natural sports drink. This trend quickly expanded into dairy alternatives and a myriad of other categories, including shampoos, packaged soups, baby food, and topical beauty applications. While enthusiasm for coconut is certainly high at the moment, some analysts speculate it may soon reach market saturation, similar to the trends seen with superfoods like kale and açaï. The sustainability of this trend will depend on several factors, including whether supply can meet demand and the direction of emerging research regarding the health benefits of coconut.
The coconut water segment has experienced remarkable growth, dominating the plant-based water market. A report by Zenith Global referenced in Beverage Industry predicts that sales will double from $2.7 billion last year to $5.4 billion by 2020. Interestingly, the coconut water boom has had little effect on farmers, as it was traditionally viewed as a byproduct. However, the rising popularity of other coconut components has increased ingredient costs significantly. For instance, coconut oil prices surged by 20% in just one month early last year as suppliers in India, Indonesia, and the Philippines struggled to meet demand. From October 2016 to January of this year, prices rose an additional 27%.
Though some may argue that escalating prices could dampen consumer enthusiasm for coconut products, coconut benefits from a broad health halo that aligns with various current health trends. It appeals to consumers who avoid gluten and dairy, and it also taps into the growing awareness of healthy fats. However, the Wall Street Journal cautions that the health benefits of unprocessed coconut do not always translate into healthier products. For instance, coconut chips are marketed as healthier alternatives to potato chips, but they still contain approximately 150 to 160 calories per serving along with about 10 grams of fat.
Interestingly, the incorporation of calcium carbonate and citrate in some coconut products is worth noting, as these ingredients are often added to enhance nutritional content, particularly in dairy alternatives. As the market continues to evolve, the role of calcium carbonate and citrate may become increasingly significant, especially in addressing consumer demand for healthier options. Ultimately, the future of coconut products will hinge on consumer preferences, pricing dynamics, and the ongoing exploration of their health benefits.