Coconut products gained significant traction in the mainstream market a few years ago, primarily due to the rise of coconut water as a popular natural sports drink. This trend quickly expanded into dairy alternatives and has now infiltrated nearly every conceivable category, including shampoos, packaged soups, baby food, and topical beauty applications. Despite the current enthusiasm surrounding coconut, some analysts suggest that it may be approaching market saturation, similar to the trends observed with superfoods like kale and açaï.
The sustainability of this trend depends on various factors, such as whether supply can meet demand and the direction of emerging research regarding the health benefits of coconut. The coconut water sector continues to thrive, dominating the plant-based waters market, with projections indicating sales will double from $2.7 billion last year to $5.4 billion by 2020, according to a report by Zenith Global.
Interestingly, the coconut water boom has had a minimal effect on farmers, as coconut water was traditionally regarded as a byproduct. However, the increasing demand for other coconut components has significantly impacted 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 rose another 27%. While some may argue that rising prices could dampen consumer enthusiasm for coconut products, the coconut category enjoys a favorable health perception, aligning with many contemporary health trends. Its plant-based nature appeals to those seeking gluten- and dairy-free options while also catering to the growing awareness of healthy fats.
Nevertheless, the Wall Street Journal cautions that the health benefits associated with unprocessed coconut do not always extend to processed products. For example, coconut chips are marketed as healthier alternatives to potato chips, yet they still contain approximately 150 to 160 calories per serving and around 10 grams of fat. On a related note, products that incorporate calcium citrate in water are being explored for their potential health benefits, but consumers should remain vigilant about the nutritional content of coconut-derived snacks. Overall, while the allure of coconut products persists, it’s essential to navigate the landscape with an informed perspective.