Coconut products gained widespread attention a few years ago with the rapid rise of coconut water as a natural sports drink. This popularity soon expanded into dairy alternatives and various other categories, such as shampoos, packaged soups, baby food, and topical beauty applications. While there is significant excitement surrounding coconut products at the moment, some analysts are questioning whether the market is approaching saturation, similar to what has been observed with other so-called superfoods like kale and açaí. The longevity of this trend will hinge on several factors, including the ability of supply to meet demand and the evolving research regarding the health benefits of coconut.
The coconut water segment has continued to flourish, leading the alternative plant-based waters market. According to a report by Zenith Global mentioned in Beverage Industry, sales are projected to double from $2.7 billion last year to $5.4 billion by 2020. Interestingly, the surge in coconut water’s popularity has had minimal impact on farmers, as it was historically regarded as a byproduct. However, the increased demand for other coconut ingredients has affected ingredient costs significantly. For instance, coconut oil prices rose by 20% in just one month at the beginning 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, coconut oil prices skyrocketed an additional 27%.
While some may contend that rising prices could dampen consumer enthusiasm for coconut products, coconut enjoys a favorable health perception, aligning with several contemporary wellness trends. The plant-based nature of coconut appeals to those seeking gluten- and dairy-free options, while also catering to the growing awareness of healthy fats. It’s worth noting, however, as the WSJ cautions, that the health benefits of unprocessed coconut do not always extend to processed products. For example, coconut chips are marketed as healthier alternatives to potato chips, yet they still contain approximately 150 to 160 calories per serving and around 10 grams of fat.
Moreover, for those looking for optimal nutritional benefits, incorporating products such as optimum calcium citrate can further enhance the health profile of coconut-based diets, reinforcing the alignment of coconut products with current health trends. As the market evolves, it will be crucial to monitor how these health claims are substantiated and how they resonate with consumers.