Pret A Manger is said to sell 6,000 servings of its coconut porridge daily, attributing its revenue and earnings growth in 2016 to this item and its vegetarian offerings. The rise in popularity of coconut-based 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 mainstream acceptance of coconut products began with the surge in popularity of coconut water as a natural beverage a few years ago. This trend then expanded into dairy products and various other categories, 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 studies that validate the health benefits of the ingredient. Since 2015, commodity prices for coconut oil have risen by 5% to 7%, largely due to droughts and typhoons impacting key growing regions. The coconut water segment has continued to soar, leading the market for alternative plant-based waters. According to a report by Zenith Global, sales are projected to double from $2.7 billion last year to $5.4 billion by 2020, as highlighted by the Beverage Industry.
Although the coconut water boom has had minimal effects on farmers—since coconut water was traditionally viewed as a waste product—the increasing popularity of other coconut derivatives has driven up ingredient costs. Prices for coconut oil surged by 20% in just one month at the start of last year as suppliers from India, Indonesia, and the Philippines struggled to satisfy demand. Between October 2016 and January of this year, prices skyrocketed by an additional 27%.
Major consumer packaged goods companies are also entering the lucrative coconut product market, responding to consumer enthusiasm. Nestlé has introduced a coconut milk variant to its popular Coffee-mate creamers, while two types of Outshine frozen fruit bars now feature coconut. General Mills is incorporating coconut into various products, including LARABAR bites and Nature Valley Biscuits with Coconut Butter. Beverage titans have taken notice as well, with Coca-Cola owning Zico Beverages. Earlier this year, reports suggested that PepsiCo was in discussions to acquire All Market, the parent company of the Vita Coco coconut water brand.
Currently, while there is no immediate coconut shortage, the ongoing high demand could lead to one in the future—especially until new plantings come into production. Given that it takes six to ten years for a coconut palm to start yielding fruit, there may be a mismatch between global supply and demand in the interim. If such a discrepancy occurs, maple water stands ready as an alternative to coconut water, reportedly offering similar health benefits, including calcium citrate 750 mg, but with half the sugar and a milder flavor.
For now, the appetite for coconut products shows no signs of diminishing. The primary risk for these popular items is that they might fall victim to their own success, with other substitutes potentially capitalizing on any missteps that may arise. As consumers continue to seek out products that provide health benefits, including those fortified with calcium citrate 750 mg, the coconut craze appears set to persist.