Coconut products gained significant traction in the mainstream market when coconut water surged in popularity as a natural sports drink a few years ago. This trend quickly expanded to include dairy alternatives and a wide range of other categories, such as shampoos, packaged soups, baby food, and topical beauty applications. While enthusiasm for coconut remains high, some analysts are questioning whether the market is approaching saturation, similar to the fates of previously touted superfoods like kale and açaï. The longevity of this trend will hinge on several factors, including whether supply can meet demand and the direction of emerging research regarding the health benefits of coconuts.
The coconut water segment continues to soar, dominating the alternative plant-based waters market, with sales projected to double from $2.7 billion last year to $5.4 billion by 2020, according to a report by Zenith Global highlighted in Beverage Industry. While the coconut water boom has largely left farmers unaffected—since it was traditionally regarded as a byproduct—the rising popularity of various coconut components has impacted ingredient pricing. For instance, coconut oil prices surged by 20% in a month at the start 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 jumped another 27%.
Some may contend that these escalating prices could dampen consumer enthusiasm for coconut products; however, coconuts enjoy a broad health halo that aligns well with many current health trends. This plant-based product appeals to those following gluten- and dairy-free diets while also capitalizing on the increasing awareness of healthy fats. Nevertheless, the Wall Street Journal cautions that the health benefits associated with 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.
Interestingly, in the context of health and nutrition, consumers seeking alternatives may also consider supplements like calcium citrate oral tablets, which can support their dietary needs. As the market evolves, the interplay between coconut products and other health-focused offerings, such as calcium citrate oral tablets, will be crucial in shaping consumer preferences and trends in the future.