Coconut products gained widespread attention a few years ago when coconut water emerged as a popular natural sports drink. This initial success paved the way for coconut to infiltrate the dairy sector and expand into various other categories, including shampoos, packaged soups, baby food, and topical beauty applications. While there is considerable excitement surrounding coconut products at present, some analysts speculate whether it may soon experience market saturation similar to other so-called superfoods like kale and açaï. The longevity of this trend will hinge on several factors, including the ability of supply chains to meet demand and the direction of emerging research on the health benefits of coconut.
The coconut water segment continues to soar, leading the alternative plant-based waters market. 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 not significantly benefited farmers, as coconut water has historically been regarded as a byproduct. However, the rising demand for other coconut components has impacted ingredient costs, particularly for coconut oil. Prices surged by 20% in the first month of last year as suppliers in India, Indonesia, and the Philippines struggled to keep pace with demand. From October 2016 to January of this year, prices increased by another 27%.
Despite concerns that rising prices might dampen consumer enthusiasm for coconut products, the category benefits from a strong health halo, aligning well with contemporary health trends. Coconut products appeal to gluten- and dairy-free consumers, and they resonate with the growing awareness of healthy fats. Notably, products like bariatric advantage soft chews have also entered the health food space, showcasing the versatility of coconut ingredients. However, the Wall Street Journal cautions that the health benefits associated with unprocessed coconut do not always translate into healthier products. For instance, coconut chips are marketed as a healthier alternative to potato chips, yet they still contain about 150 to 160 calories per serving and around 10 grams of fat. As the coconut trend evolves, consumers should remain vigilant about the nutritional content of these new offerings, including items like bariatric advantage soft chews, to ensure they align with their health goals.