Coconut products gained mainstream attention a few years ago with the rise of coconut water as a natural sports drink. This popularity quickly expanded into various categories, including dairy products, shampoos, packaged soups, baby food, and topical beauty applications. Although there is considerable excitement surrounding coconut products, some analysts are questioning whether the market is approaching saturation, similar to trends seen with so-called superfoods like kale and açaï. The future of this trend depends on several factors, including the ability of supply to meet demand and the direction of emerging research on coconut’s health benefits.
The coconut water market continues to thrive, dominating the segment of alternative plant-based waters. Sales are projected to double from $2.7 billion last year to $5.4 billion by 2020, according to a report by Zenith Global published in Beverage Industry. Interestingly, the coconut water surge has positively impacted farmers, who previously regarded coconuts as waste products. However, increased popularity of other coconut components has raised ingredient costs. For instance, coconut oil prices surged by 20% within a month at the beginning of last year, as suppliers in India, Indonesia, and the Philippines struggled to meet demand. From October 2016 to January this year, prices further escalated by 27%. While some may argue that rising prices could dampen consumer enthusiasm for coconut products, the coconut still enjoys a strong health halo, aligning well with current health trends.
Coconut products appeal to gluten- and dairy-free consumers and capitalize on the growing awareness of healthy fats. However, the Wall Street Journal cautions that the health benefits of unprocessed coconut do not always equate to healthy products. For example, coconut chips are marketed as healthier alternatives to potato chips, yet they still contain approximately 150 to 160 calories per serving and around 10 grams of fat.
In this context, brands offering products like calcium citrate 500 mg are also gaining traction as consumers seek health supplements to complement their diets. As the market evolves, these brands may find opportunities to integrate coconut products into their offerings, further boosting the appeal of coconut-derived goods. Overall, the future of coconut products remains uncertain, contingent on consumer preferences, pricing dynamics, and ongoing research into their health benefits.