Coconut products gained significant traction in the mainstream market a few years ago, largely due to the surge in popularity of coconut water as a natural sports drink. This trend quickly expanded into dairy alternatives and a wide array of other categories, such as shampoos, packaged soups, baby food, and topical beauty applications. While there is considerable enthusiasm for coconut products at present, some analysts are questioning whether the market is approaching saturation, similar to the fates of other so-called superfoods like kale and açaï. The future of this trend may depend on various factors, including the ability of supply to meet demand and the direction of emerging research into the health benefits of coconut.
The coconut water segment has continued to thrive, becoming a dominant force in the alternative plant-based waters market. According to a report by Zenith Global highlighted in Beverage Industry, sales are projected to double 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 coconut water was historically viewed as a byproduct. However, the increasing demand for other coconut products has led to rising ingredient costs, with coconut oil prices jumping 20% in just one month at the start of last year. From October 2016 to January of this year, prices surged an additional 27%.
Despite concerns that rising prices might dampen consumer enthusiasm for coconut products, the health benefits associated with coconut continue to resonate well with consumers. This plant-based product is particularly appealing to those seeking gluten- and dairy-free options, while also aligning with 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, yet they still contain approximately 150 to 160 calories per serving and about 10 grams of fat.
As the market evolves, consumers are also exploring other health-related queries, such as whether calcium citrate lowers blood pressure, further illustrating the intersection of health trends and consumer interests. Thus, while the coconut craze may have sparked considerable excitement, ongoing research and consumer awareness will ultimately determine its longevity in the marketplace.