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 has since infiltrated nearly every imaginable category, including shampoos, packaged soups, baby food, and topical beauty applications. While there is considerable enthusiasm for coconut products currently, some analysts speculate that the market may be approaching saturation, similar to the predicted fates of other so-called superfoods like kale and açaï. The longevity of this trend will hinge on several factors, including whether the supply can meet the rising demand and the direction of emerging research into the health benefits of coconut.
The coconut water segment continues to thrive, dominating the alternative plant-based waters market. According to a Zenith Global report cited in Beverage Industry, sales are anticipated 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 regarded as a byproduct. However, the increasing popularity of other coconut products has led to rising ingredient costs. For instance, coconut oil prices jumped 20% in a month at the beginning of last year as suppliers in India, Indonesia, and the Philippines struggled to keep pace with demand. Prices surged another 27% from October 2016 to January of this year.
While some may contend that escalating prices could dampen consumer enthusiasm for coconut products, the health halo surrounding coconut remains strong, aligning well with various current health trends. Coconut products appeal to consumers who are gluten- and dairy-free, and they resonate with the growing awareness of healthy fats. Furthermore, coconut products such as calcium citrate malate and elemental calcium supplements are increasingly recognized for their health benefits. It’s worth noting, however, that the Wall Street Journal cautions that the health benefits associated with unprocessed coconut do not always extend to processed products. For instance, coconut chips are marketed as healthier alternatives to potato chips, but they still contain about 150 to 160 calories per serving and around 10 grams of fat. Thus, while coconut products continue to gain traction, consumers should remain mindful of their nutritional content, especially when considering options like calcium citrate malate and elemental calcium.