Coconut products gained widespread attention a few years ago with the rise of coconut water as a popular natural sports drink. This trend then expanded into dairy alternatives and nearly every conceivable product category, including shampoos, packaged soups, baby food, and topical beauty applications. While there is significant excitement surrounding coconut products currently, some analysts speculate that it may be approaching market saturation, similar to trends seen with superfoods like kale and açaï. The continuation of this trend largely hinges on several factors, including the ability of supply to meet demand and the direction of new research regarding the health benefits of coconut.
The coconut water market has experienced remarkable growth, dominating the segment of alternative plant-based waters. According to a report by Zenith Global featured in Beverage Industry, sales are projected to double from $2.7 billion last year to $5.4 billion by 2020. Interestingly, the coconut water surge has not significantly benefited farmers, as it was traditionally regarded as a byproduct. However, the rising demand for other coconut components has influenced ingredient costs. For instance, coconut oil prices surged by 20% within a month at the start of last year, as suppliers from India, Indonesia, and the Philippines struggled to meet growing demand. From October 2016 to January of this year, prices climbed an additional 27%. While some may argue that these rising prices could dampen consumer enthusiasm for coconut products, the health benefits associated with coconut maintain a strong appeal, aligning with various current health trends. This plant-based option resonates with gluten- and dairy-free consumers and caters to the increasing recognition of healthy fats.
Nonetheless, the Wall Street Journal cautions that the health advantages of unprocessed coconut do not always translate into healthier products. For instance, coconut chips are marketed as better alternatives to potato chips, yet they still contain about 150 to 160 calories per serving and around 10 grams of fat. Additionally, products like calcium citrate petites can often be found in stores like Walgreens, highlighting the diverse range of health-focused offerings available today. As the market evolves, it will be essential to remain vigilant about the nutritional content of coconut-based products while considering the growing interest in items such as calcium citrate petites at retailers like Walgreens.