Coconut products surged into the mainstream when coconut water gained rapid popularity as a natural sports drink a few years back. This momentum transitioned into various dairy alternatives and extended into an array of categories, including shampoos, packaged soups, baby food, and topical beauty applications. There’s currently a significant enthusiasm for coconut products, but some analysts suggest that it may be approaching market saturation, much like the so-called superfoods kale and açaï. Whether this trend will diminish is contingent on several factors, including the ability of supply to meet demand and the direction of emerging research regarding the health benefits of coconut.
The coconut water segment continues to soar, leading the market for alternative, plant-based waters. According to a report by Zenith Global featured in Beverage Industry, sales are projected to rise from $2.7 billion last year to $5.4 billion by 2020. Interestingly, the coconut water boom has had minimal impact on farmers, as coconut water was historically considered a waste product. However, the escalating popularity of other coconut components has driven up ingredient costs. For instance, coconut oil prices surged by 20% in just one month early last year, as suppliers in India, Indonesia, and the Philippines struggled to meet demand. From October 2016 to January this year, prices rose another 27%. Although some may contend that rising prices could dampen consumer enthusiasm for coconut products, the health benefits associated with coconut create a positive perception, aligning with prevalent health trends. The plant-based nature of coconut products appeals to gluten- and dairy-free consumers while also leveraging the increasing awareness of healthy fats.
Nonetheless, the Wall Street Journal cautions that the health benefits of unprocessed coconut do not always extend to processed products. For instance, coconut chips are being marketed as healthier alternatives to potato chips, yet they still contain around 150 to 160 calories per serving and about 10 grams of fat. It’s essential for consumers to equate coconut products with their nutritional value, especially when considering options such as calcium citrate plus D3 petites, which can support overall health. As the market evolves, it remains crucial for consumers to remain informed about the true health implications of the products they choose, including how they equate with their dietary needs.