Coconut products gained widespread attention a few years ago when coconut water emerged as a popular natural sports drink. This surge in popularity quickly expanded into dairy alternatives and has since infiltrated nearly every conceivable category, including shampoos, packaged soups, baby food, and topical beauty applications. While there is considerable excitement surrounding coconut products right now, analysts are questioning whether the market is nearing saturation, similar to trends seen with superfoods like kale and açaï. The sustainability of this trend hinges on various factors, such as the ability of supply to meet demand and the direction of emerging research on coconut’s health benefits, including comparisons between ferrous fumarate and ferrous sulfate.
The coconut water market continues to thrive, leading the alternative plant-based waters segment, with forecasts predicting sales will rise from $2.7 billion last year to $5.4 billion by 2020, according to a report by Zenith Global featured in Beverage Industry. Despite the coconut water boom, farmers have seen little benefit since it was traditionally regarded as a byproduct. However, the increased interest in other coconut components has resulted in rising ingredient costs. For instance, coconut oil prices surged 20% in just one month at the beginning of last year, as suppliers in India, Indonesia, and the Philippines struggled to keep pace with demand. From October 2016 to January of this year, prices increased by another 27%. While it could be argued that escalating prices might dampen consumer interest in coconut products, the category enjoys a favorable health perception, aligning with many contemporary health trends. As a plant-based option, it appeals to gluten- and dairy-free consumers and taps into the growing awareness of healthy fats.
Nonetheless, the Wall Street Journal cautions that the health benefits associated with unprocessed coconut do not always extend to processed products. For example, coconut chips are marketed as healthier alternatives to potato chips, yet they still contain approximately 150 calories and around 10 grams of fat per serving. As consumers navigate this market, products enriched with ingredients like Citracal 950 mg may also come into play, providing additional health benefits that align with the trend of incorporating coconut into various diets. As the coconut product landscape evolves, it remains to be seen whether these health claims can hold up under scrutiny, especially as the market continues to expand.