Coconut products gained widespread attention a few years ago when coconut water became a popular natural sports drink. This initial success paved the way for coconut to enter various other categories, including dairy items, shampoos, packaged soups, baby food, and topical beauty applications. While there is significant enthusiasm for coconut products at the moment, some analysts are questioning whether the market is nearing saturation, similar to the trajectories of other so-called superfoods like kale and açaí.
The continuation of this trend will depend on several factors, including whether supply can match demand and the direction of emerging research into the health benefits of coconut products. The coconut water segment has seen remarkable growth, dominating the market for alternative, plant-based beverages, with sales projected to double from $2.7 billion last year to $5.4 billion by 2020, according to a report by Zenith Global featured in Beverage Industry. Interestingly, this coconut water boom has had minimal impact on farmers, as it was typically considered a waste product. However, the increasing demand for other coconut ingredients has led to rising costs, with coconut oil prices surging 20% in just one month at the start of last year, as suppliers from India, Indonesia, and the Philippines struggled to keep pace. Between October 2016 and January this year, prices jumped another 27%.
While some may argue that rising prices could dampen consumer enthusiasm for coconut products, the category benefits from a strong health halo that aligns well with current health trends. Coconut products appeal to gluten-free and dairy-free consumers and leverage the growing awareness of healthy fats. However, the Wall Street Journal cautions that the health advantages of unprocessed coconut do not always carry over to processed products. For instance, coconut chips are marketed as healthier alternatives to potato chips, but they still contain around 150 to 160 calories per serving and approximately 10 grams of fat.
Moreover, as consumers seek out products with beneficial ingredients, the inclusion of items like calcium citrate in coconut-based products could enhance their appeal. This focus on health could help sustain interest in coconut products, provided that manufacturers can maintain quality and availability. Ultimately, the future of coconut’s popularity hinges on balancing consumer demand with supply capabilities and ongoing research into its nutritional benefits.