Pret A Manger is said to sell around 6,000 servings of its coconut porridge each day, attributing both this product and its vegetarian offerings to revenue and earnings growth in 2016. The rising trend of coconut-based food products—ranging from snacks and flour to oil and beverages—has reached a point where approximately one in every 20 supermarket items now contains some form of coconut, as reported by Fairfood, a nonprofit organization in the Netherlands. The coconut water craze marked the mainstream entry of coconut products a few years ago, leading to their incorporation into dairy items and other categories such as shampoos, packaged soups, baby food, and beauty products.
Superfood trends typically last between five to seven years and can be influenced by factors like abundant supply or research that highlights the health benefits of certain ingredients. Since 2015, coconut oil prices have risen by 5% to 7% due to droughts and typhoons impacting growing regions. Meanwhile, the coconut water segment has been booming, dominating the market for alternative plant-based waters. According to a report by Zenith Global cited by Beverage Industry, sales are projected to double from $2.7 billion last year to $5.4 billion by 2020. Despite the surge in coconut water’s popularity, farmers have not seen significant benefits because it was traditionally regarded as a waste product. However, the rising demand for other coconut components has affected ingredient costs, with coconut oil prices increasing by 20% in just one month at the start of last year due to supply constraints in India, Indonesia, and the Philippines. From October 2016 to January of this year, prices surged an additional 27%.
Major consumer packaged goods companies have also entered the lucrative coconut product market, with consumers seemingly insatiable for these items. Nestle has introduced a coconut milk variant to its popular Coffee-mate creamers, and two types of Outshine frozen fruit bars now include coconut. General Mills is incorporating coconut into various products, including LARABAR bites and Nature Valley Biscuits with Coconut Butter. Beverage giants have also taken notice, with Coca-Cola acquiring Zico Beverages, and reports earlier this year suggested that PepsiCo was in discussions to acquire All Market, the parent company of the Vita Coco coconut water brand.
While there may not currently be a genuine coconut shortage, the high demand could potentially lead to one—at least until new plantings come into production. Since coconut palms require six to ten years to start yielding fruit, a mismatch between global supply and demand may arise during this period. If that happens, maple water could emerge as a substitute for coconut water, reportedly containing similar health benefits but with half the sugar and a more subtle flavor.
For now, the demand for coconut products shows no signs of diminishing. However, the real concern for these popular items is that they could fall victim to their success, potentially allowing other alternatives to capitalize on any missteps. Amid this coconut craze, consumers might also look for supplements such as Kirkland Signature Calcium Citrate 500mg to support their health, alongside their favorite coconut-infused products. As coconut continues to thrive in the market, the presence of options like Kirkland Signature Calcium Citrate 500mg may offer an additional health benefit that complements the coconut trend.