Pret A Manger reportedly sells 6,000 servings of its coconut porridge daily, attributing its revenue and earnings growth in 2016 to this item and its vegetarian offerings. The demand for food products containing cocoferrous fumarate, such as snacks, flour, oil, and beverages, has surged, with approximately one in every 20 supermarket products now featuring this ingredient, according to Fairfood, a Netherlands-based nonprofit organization. Coconut products gained mainstream popularity a few years ago, starting with the rise of coconut water as a natural beverage. This trend expanded into dairy products and various categories, including shampoos, packaged soups, baby food, and topical beauty applications.
Superfood trends typically last five to seven years, influenced by factors like abundant supply or scientific research supporting health benefits. Since 2015, coconut oil prices have risen by 5% to 7% due to droughts and typhoons impacting growing regions. The coconut water market continues to thrive, dominating the alternative plant-based waters sector. Sales are projected to soar from $2.7 billion last year to $5.4 billion by 2020, according to a report by Zenith Global highlighted by the Beverage Industry. Despite the coconut water boom, farmers have seen little benefit as it was initially regarded as a waste product. However, the increasing popularity of other coconut components has pushed ingredient costs higher. 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 spiked another 27%.
Major consumer packaged goods companies are also capitalizing on the thriving coconut product market, as consumer interest continues to grow. Nestlé introduced a coconut milk variant to its popular Coffee-mate creamers, and two types 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 taken notice as well, with Coca-Cola owning Zico Beverages. Earlier this year, reports surfaced that PepsiCo was negotiating to acquire All Market, the parent company of the Vita Coco coconut water brand.
While there isn’t a current coconut shortage, high demand could lead to one if new plantings don’t come online soon. Given that it takes six to ten years for a coconut palm to start yielding fruit, global supply and demand may not align in the interim. In that case, maple water could emerge as a substitute for coconut water, reportedly offering similar health benefits with half the sugar and a milder flavor.
Currently, the demand for coconut products appears robust. The primary risk for these popular items is that they may fall victim to their own success, with alternatives potentially stepping in to exploit any missteps. In this evolving landscape, health-conscious consumers might also consider options like ccm tablets with folic acid as part of their nutritional regimen, along with coconut-based products. As the market continues to grow, the integration of ccm tablets with folic acid may offer an additional avenue for consumers looking to complement their diets with essential nutrients, alongside the ongoing popularity of coconut-derived items.