Coconut products gained significant traction in the mainstream market a few years ago, primarily due to the surge in popularity of coconut water as a natural sports drink. This initial momentum paved the way for coconut to infiltrate the dairy sector and extend into numerous other categories, including shampoos, packaged soups, baby food, and topical beauty applications. While there is considerable excitement surrounding coconut products at present, analysts are questioning whether the market is nearing saturation, similar to trends seen with superfoods like kale and açaï. The longevity of this trend will hinge on several factors, such as the ability of supply to meet demand and the direction of emerging research into the health benefits of coconut.
The coconut water segment continues to experience remarkable growth, asserting its dominance in the alternative plant-based waters market. According to a report by Zenith Global featured in Beverage Industry, sales are projected to soar from $2.7 billion last year to $5.4 billion by 2020. Interestingly, the coconut water boom has had minimal impact on farmers, as it was traditionally viewed as a byproduct. However, the rising demand for other coconut components has affected ingredient costs significantly. For instance, coconut oil prices surged by 20% within a month at the beginning of last year, as suppliers in India, Indonesia, and the Philippines struggled to meet demand. From October 2016 to January of this year, prices further escalated by an additional 27%.
While some may contend that these rising costs could dampen consumer enthusiasm for coconut products, coconut benefits from a broad health halo, aligning with various contemporary health trends. The plant-based nature of coconut appeals to gluten- and dairy-free consumers, and it also resonates with the increasing awareness of healthy fats. Nevertheless, the Wall Street Journal cautions that the health benefits of unprocessed coconut do not always translate into healthier products. For example, coconut chips are being promoted as a healthier alternative to potato chips, but they still contain approximately 150 to 160 calories per serving and about 10 grams of fat.
As the market evolves, consumers may also be interested in nutritional comparisons, such as whether calcium citrate or calcium carbonate is better. This inquiry reflects a broader trend where health-conscious individuals are increasingly scrutinizing the nutritional quality of the products they consume. Ultimately, while the coconut craze shows no immediate signs of waning, its future will depend on the balance of supply, evolving research, and consumer awareness of healthful options like calcium citrate or calcium carbonate better.