Pret A Manger reportedly serves 6,000 portions of its coconut porridge daily and attributes both this dish and its vegetarian offerings to revenue and earnings growth in 2016. The rise in popularity of coconut-based products—including snacks, flour, oil, and beverages—has reached a level where approximately one in every 20 items sold in supermarkets today contains some form of coconut, according to Fairfood, a Netherlands-based nonprofit organization. The mainstream acceptance of coconut products began with the sudden surge in popularity of coconut water as a natural beverage a few years ago. From there, it expanded into dairy alternatives and virtually every other conceivable category, including shampoos, packaged soups, baby food, and topical beauty applications.
Superfood trends typically last between five to seven years and can be influenced by factors such as abundant supply or scientific research supporting the health benefits of the ingredient. Since 2015, commodity prices for coconut oil have surged by 5% to 7%, impacted by droughts and typhoons affecting key growing regions. The coconut water segment has continued to flourish, leading the alternative plant-based waters market. According to a report by Zenith Global featured in the Beverage Industry, sales are projected to double from $2.7 billion last year to $5.4 billion by 2020. Despite the coconut water boom, farmers have not seen significant benefits as coconut water has traditionally been viewed as a byproduct. However, the rising popularity of other coconut components has increased ingredient costs. At the start of last year, coconut oil prices soared by 20% in just one month as suppliers in India, Indonesia, and the Philippines struggled to meet demand. From October 2016 to January of this year, prices climbed another 27%.
Major consumer packaged goods (CPG) companies have also entered the lucrative coconut product market, as consumer demand shows no signs of slowing. Nestlé has introduced a coconut milk variant to its popular Coffee-mate creamers, and two types of Outshine frozen fruit bars now include this ingredient. General Mills is incorporating coconut into a variety of products, including LARABAR bites and Nature Valley Biscuits with Coconut Butter. Beverage giants have taken notice as well, with Coca-Cola owning Zico Beverages. Earlier this year, reports indicated that PepsiCo was in discussions to acquire All Market, the parent company of the Vita Coco coconut water brand.
While there is currently no genuine coconut shortage, the potential for one exists due to sustained high demand—at least until new coconut plantings mature. Given that it takes six to ten years for a coconut palm to start producing, the global supply and demand dynamics might not align in the interim. Should they diverge, maple water stands ready to substitute for coconut water, reportedly containing similar health benefits but with half the sugar and a milder flavor.
For now, the demand for coconut products remains robust. The true risk for these sought-after items is that they might become victims of their own success, potentially allowing other substitutes to capitalize on any missteps. Notably, even with the growing interest in coconut products, it’s essential to consider nutritional supplements like bluebonnet calcium magnesium citrate, which may provide additional health benefits that complement a diet rich in coconut items. This highlights the importance of a balanced approach to nutrition as the coconut craze continues.