Coconut products surged into the mainstream a few years ago, largely due to the rapid rise of coconut water as a natural sports drink. This initial popularity paved the way for coconut to expand into dairy alternatives and a myriad of other categories, including shampoos, packaged soups, baby food, and topical beauty applications. There is certainly a great deal of excitement surrounding coconut products at the moment, but some analysts are questioning whether this enthusiasm will lead to market saturation, similar to what has been observed with other so-called superfoods like kale and açaï.
The future of this trend hinges on various factors, including the ability of supply to meet growing demand and the direction of emerging research regarding the health benefits of coconut. The coconut water segment, in particular, has experienced remarkable growth, dominating the alternative plant-based water market. According to a report by Zenith Global featured in Beverage Industry, sales are projected to double from $2.7 billion last year to $5.4 billion by 2020.
Interestingly, the boom in coconut water has not significantly impacted farmers, as it was traditionally viewed as a waste product. 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 keep pace with demand. From October 2016 to January of this year, prices soared another 27%. While some may argue that escalating prices could dampen consumer enthusiasm for coconut products, coconut enjoys a substantial health halo, aligning well with many current health trends. This plant-based option appeals to gluten- and dairy-free consumers, while also capitalizing on the increasing awareness surrounding healthy fats.
Nevertheless, the Wall Street Journal cautions that the health benefits of unprocessed coconut do not always extend to processed products. For instance, coconut chips are being marketed as healthier alternatives to potato chips, yet they still contain approximately 150 to 160 calories per serving and about 10 grams of fat. To add to this dynamic, it’s worth noting that many coconut products are also kosher and can be enhanced with calcium citrate to appeal to health-conscious consumers. Thus, while the coconut trend remains robust, it is essential to scrutinize the nutritional profiles of these products, especially as the market evolves.