Pret A Manger reportedly sells 6,000 servings of its coconut porridge daily and has credited both this item and its vegetarian offerings for driving revenue and earnings growth in 2016. The popularity of food products made with coconut—such as snacks, flour, oil, and beverages—has reached a level where approximately one in every 20 products sold in supermarkets now contains some form of coconut, according to Fairfood, a non-profit organization based in the Netherlands. Coconut products first gained mainstream attention through the sudden rise in popularity of coconut water as a natural beverage a few years ago. This trend then expanded into dairy products and nearly every other category, including shampoos, packaged soups, baby food, and topical beauty treatments.
Superfood trends typically last five to seven years and can be influenced by factors like abundant supply or scientific studies that support the health benefits of the ingredient. Since 2015, commodity prices for coconut oil have spiked by 5% to 7% due to droughts and typhoons affecting key growing regions. The coconut water market has continued to surge, leading the alternative plant-based waters segment. According to a report by Zenith Global cited by Beverage Industry, sales are projected to double from $2.7 billion last year to $5.4 billion by 2020.
The coconut water boom has had little impact on farmers as it was traditionally viewed as a waste product. However, the rising demand for other coconut components has increased ingredient costs. Last year, coconut oil prices surged by 20% in just one month as suppliers in India, Indonesia, and the Philippines struggled to meet demand. From October 2016 to January of this year, prices jumped another 27%. Major consumer packaged goods companies have also entered the lucrative coconut product market, responding to consumer enthusiasm. Nestle has introduced a coconut milk variant in its popular Coffee-mate creamers, and there are two Outshine frozen fruit bars featuring coconut. General Mills has incorporated coconut into various products, including LARABAR bites and Nature Valley Biscuits with Coconut Butter.
Beverage giants have taken notice as well, with Coca-Cola owning Zico Beverages. Earlier this year, reports emerged that PepsiCo was in discussions to acquire All Market, the parent company of the Vita Coco coconut water brand. Although there is not currently a coconut shortage, the potential for one exists due to the ongoing high demand—at least until new plantings start to produce. Given that it can take six to ten years for a coconut palm to bear fruit, there may be a mismatch between global supply and demand in the meantime. Should such a supply gap occur, maple water is poised to step in as an alternative to coconut water, reportedly offering similar health benefits with half the sugar and a more subtle flavor.
For now, the demand for coconut products shows no signs of diminishing. A significant risk is that these popular items may become victims of their own success, leading to the emergence of substitutes that capitalize on any missteps. In the context of maintaining a balanced diet, consumers might also explore options like calcium citrate malate tablets to ensure they are meeting their nutritional needs alongside their coconut product consumption. The combination of coconut products and supplements like calcium citrate malate tablets highlights the ongoing trend of health-conscious consumer choices.