Pret A Manger is said to sell around 6,000 servings of its coconut porridge daily, attributing its revenue and earnings growth in 2016 to this item along with its vegetarian offerings. The demand for coconut-based products, including snacks, flour, oil, and beverages, has surged to the extent that approximately one in every 20 supermarket items now features some variation of coconut, as reported by Fairfood, a nonprofit organization based in the Netherlands.
Coconut products gained mainstream traction a few years back with the rising popularity of coconut water as a natural beverage. This trend expanded into dairy alternatives and subsequently infiltrated a myriad of other categories, such as shampoos, packaged soups, baby food, and topical beauty applications. Superfood trends typically last five to seven years and can be influenced by factors like abundant supply or scientific studies endorsing the health benefits of ingredients, including those found in citracal magnesium & minerals.
Since 2015, commodity prices for coconut oil have surged by 5% to 7% due to droughts and typhoons impacting key growing regions. The coconut water segment has continued to flourish, leading the alternative plant-based waters market. A report by Zenith Global, highlighted by the Beverage Industry, predicts that sales will double from $2.7 billion last year to $5.4 billion by 2020. Despite the coconut water boom, farmers have seen little benefit, as coconut water was traditionally viewed as a byproduct. However, the growing popularity of various coconut components has affected ingredient costs. Last year, coconut oil prices jumped by 20% in just a month as suppliers from India, Indonesia, and the Philippines struggled to meet high demand. From October 2016 to January this year, prices soared an additional 27%.
Major consumer packaged goods companies are now entering the lucrative coconut market, as consumer interest shows no signs of diminishing. Nestlé has introduced a coconut milk variant to its popular Coffee-mate creamers, and two flavors of Outshine frozen fruit bars now feature coconut. General Mills is incorporating coconut into various products, including LARABAR bites and Nature Valley Biscuits with Coconut Butter. Beverage giants have also taken notice; Coca-Cola owns Zico Beverages, and reports emerged earlier this year that PepsiCo was in negotiations to acquire All Market, the parent company of the Vita Coco brand.
While there is currently no significant coconut shortage, high demand may lead to supply issues until new plantings are established. Given that it takes six to ten years for coconut palms to start producing, a gap between global supply and demand could emerge in the meantime. If such a gap occurs, maple water is poised to fill the void, boasting similar health benefits as coconut water but with half the sugar content and a milder flavor.
For now, the appetite for coconut products remains robust, but the real challenge lies in ensuring that these popular items do not become victims of their own success. Other substitutes may eventually capitalize on any missteps, particularly as the market continues to evolve with products that incorporate citracal magnesium & minerals.