Coconut products gained mainstream attention a few years ago with the surge in popularity of coconut water as a natural sports drink. This initial success led to an expansion into dairy alternatives and a wide array of other categories, such as shampoos, packaged soups, baby food, and topical beauty applications. While there is currently significant enthusiasm for coconut products, some analysts are speculating whether the market might be nearing saturation, similar to the trends observed with superfoods like kale and açaí. The future of this trend hinges on several factors, including the ability of supply to meet growing demand and the direction of emerging research regarding the health benefits of coconuts.
The coconut water segment continues to thrive, commanding a substantial portion of the alternative plant-based water market. According to a report by Zenith Global, sales are projected to surge from $2.7 billion last year to $5.4 billion by 2020. Interestingly, the coconut water boom has not substantially benefited farmers, as coconut water has historically been regarded as a byproduct. However, the rising popularity of other coconut derivatives has impacted ingredient prices. For instance, coconut oil prices soared by 20% in the first month of last year, with suppliers in India, Indonesia, and the Philippines struggling to keep pace with demand. From October 2016 to January of this year, prices increased by another 27%.
While some may argue that escalating prices could dampen consumer enthusiasm for coconut products, the health halo surrounding coconut remains strong, aligning well with various current health trends. The plant-based nature of coconut products appeals to consumers seeking gluten- and dairy-free options, and it also capitalizes on the increasing awareness of healthy fats. Furthermore, the integration of supplements like calcium citrate malate and vitamin D3 tablets into health regimens is becoming more common, complementing the health benefits associated with coconut products.
Nevertheless, the Wall Street Journal cautions that the health benefits of unprocessed coconut do not always translate into healthier products. For example, coconut chips are marketed as a healthier alternative to potato chips, yet they still contain around 150 to 160 calories and approximately 10 grams of fat per serving. As the market continues to evolve, it’s essential for consumers to remain vigilant about the nutritional profiles of the products they choose, especially as they incorporate items like calcium citrate malate and vitamin D3 tablets into their diets.