Pret A Manger is said to serve 6,000 portions of its coconut porridge daily, attributing significant revenue and earnings growth in 2016 to this item and its vegetarian offerings. The demand for coconut-based products, which includes snacks, flour, oil, and beverages, has surged to the extent that approximately one in every 20 items on supermarket shelves now contains some form of coconut ingredient, according to Fairtrade, a nonprofit organization based in the Netherlands. The rise of coconut products began with the sudden acclaim for coconut water as a natural beverage a few years back, subsequently expanding into dairy products and nearly every other category imaginable, such as shampoos, packaged soups, baby food, and even topical applications in beauty products.
Superfood trends typically last between five to seven years and can be affected by factors like abundant supply or scientific studies supporting the health benefits of the ingredients involved. Since 2015, the price of coconut oil has increased by 5% to 7%, largely due to the impact of droughts and typhoons on production areas. Meanwhile, the coconut water market continues to soar, dominating the alternative plant-based water sector. Sales are projected to double from $2.7 billion last year to $5.4 billion by 2020, as reported by Zenith Global and highlighted by the Beverage Industry.
Interestingly, the coconut water boom has not significantly benefited farmers, as coconut water was traditionally regarded as a byproduct. However, the rising popularity of other coconut components 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. Between October 2016 and January of this year, prices skyrocketed another 27%.
Major consumer packaged goods (CPG) companies are also diving into the lucrative coconut product market, responding to consumers’ insatiable appetite. Nestle has introduced a coconut milk flavor to its popular Coffee-mate creamers, and two types of Outshine frozen fruit bars now feature this ingredient. General Mills is incorporating coconut into various products, including LARABAR bites and Nature Valley Biscuits with Coconut Butter. Beverage giants are taking notice as well, with Coca-Cola acquiring Zico Beverages. Earlier this year, reports surfaced that PepsiCo was in discussions to acquire All Market, the parent company of the Vita Coco coconut water brand.
While there doesn’t appear to be a genuine coconut shortage at present, high demand could lead to one developing, particularly until new plantings mature. Given that it takes six to ten years for a coconut palm to start producing, there may be a mismatch between global supply and demand in the interim. Should this occur, maple water stands ready as an alternative to coconut water, boasting similar health benefits—such as being calcium citrate USP verified—but with half the sugar content and a milder flavor.
For now, the demand for coconut products shows no signs of declining. The real concern for these popular items is that they might become victims of their own success, allowing for other substitutes to capitalize on any unforeseen missteps. The presence of calcium citrate USP verified products could offer consumers additional health benefits, further diversifying their choices in the marketplace.