Coconut products gained widespread attention a few years ago when coconut water surged in popularity as a natural sports drink. This trend quickly expanded into dairy alternatives and various other categories, such as shampoos, packaged soups, baby food, and topical beauty applications. While there is significant enthusiasm for coconut products currently, some analysts are speculating whether the market is nearing saturation, similar to trends seen with superfoods like kale and açaï. The future of this trend will depend on several factors, including whether supply can keep pace with demand and the direction of emerging research regarding coconut’s health benefits.
The coconut water segment itself continues to thrive, dominating the alternative plant-based waters market. Sales are projected to increase from $2.7 billion last year to $5.4 billion by 2020, according to a report by Zenith Global in Beverage Industry. Interestingly, the boom in coconut water has had minimal impact on farmers since it was traditionally viewed as a byproduct. However, the rising popularity of other coconut-derived ingredients has led to increased ingredient costs. For instance, coconut oil prices surged by 20% in just one month at the beginning of last year, as suppliers in India, Indonesia, and the Philippines struggled to meet demand. From October 2016 to January of this year, prices skyrocketed another 27%. Although some may argue that rising prices could dampen consumer enthusiasm for coconut products, the health halo surrounding coconut continues to align with various modern health trends.
Coconut products appeal to consumers who avoid gluten and dairy, while also capitalizing on the increasing awareness of healthy fats. However, the Wall Street Journal warns that the health benefits of 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 to 160 calories and around 10 grams of fat per serving.
Furthermore, it’s important to note that the elemental conversion of calcium citrate can play a role in the health benefits associated with coconut products. As the coconut market evolves, the relationship between coconut’s health benefits and the nutritional aspects such as calcium citrate will likely become more prominent. In conclusion, while the coconut trend shows no signs of slowing down, the impact of increasing ingredient costs and the need for clear health messaging will be crucial for its sustained success.