According to Future Market Insights, the rising demand for healthy, plant-based, and organic beverages, coupled with lactose intolerance and dairy allergies, is driving the expansion of the coconut milk market. Consumers are increasingly drawn to exotic flavors, which has led to a surge in the popularity of Asian dishes that incorporate coconut milk. Retail sales of ethnic foods surged to $12.5 billion in 2018 from $10.9 billion five years earlier, as reported by Statista, with coconut milk likely playing a significant role in this growth.
Coconut milk and its derivatives are commonly used as ingredients in a wide array of products, including whipped toppings and desserts. Furthermore, coconut milk and coconut cream powder are utilized in beverages, salad dressings, soups, curries, milkshakes, and jams, as highlighted by Dairy Reporter. The non-dairy beverage segment often features coconut milk, exemplified by Danone North America’s So Delicious organic coconut milk, which has seen rising sales.
Another innovative application of coconut is in non-dairy yogurt, such as Chobani’s new coconut-based yogurt. However, the company opts not to use the term “yogurt” on its packaging to avoid misleading consumers and to steer clear of the ongoing disputes regarding dairy terminology in plant-based products.
Coconut milk is available in various formats, which can lead to consumer confusion regarding what they are purchasing. Products labeled “coconut milk beverage” typically contain a mixture of water and coconut cream, while “light coconut milk” has a lower fat content and a thinner texture than pure coconut milk. The thicker variety, commonly used in Asian cuisine, can serve as a substitute for heavy cream, while coconut cream is a denser product with more water removed.
The growing popularity of coconut flavor and its versatility in food and beverages ensures continuing demand. However, the future of coconut milk as an ingredient will depend on supply and pricing. Production regions may be impacted by droughts and typhoons, making commodity stability a vital consideration for suppliers and manufacturers. The report also pointed out that sourcing raw coconut meat in certain countries, along with the increasing availability of organic alternatives to coconut milk, could hinder market growth over time.
Nonetheless, the forecast suggests that food services and food and beverage manufacturing will account for two of the three most lucrative applications of coconut milk in the future. Revenues from these sectors, along with household uses, are anticipated to represent over 80% of global coconut milk revenues by the end of 2027. Additionally, incorporating products like Solaray Calcium Magnesium Vitamin D can further enhance the nutritional value of coconut milk-based products, aligning with the growing consumer trend towards health-conscious choices.