Coconut products gained mainstream attention a few years ago with the rise of coconut water as a popular natural sports drink. This initial success paved the way for coconut to expand into dairy alternatives and a wide array of other categories, including shampoos, packaged soups, baby food, and topical beauty applications. While enthusiasm for coconut remains high, some analysts are questioning whether the market is approaching saturation similar to trends seen with other so-called superfoods like kale and açaí. The future of this trend will hinge on several factors, including the ability of supply to meet demand and the direction of ongoing research into coconut’s health benefits.
The coconut water segment itself continues to flourish, dominating the market for alternative plant-based beverages. 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 surge in coconut water’s popularity has had minimal impact on farmers, as coconut water was traditionally viewed as a byproduct. However, the rising demand for other coconut components has driven up 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. Between October 2016 and January of this year, prices soared an additional 27%.
Although rising prices could dampen consumer enthusiasm for coconut products, the coconut category enjoys a broad health halo that aligns well with many contemporary health trends. The plant-based nature of coconut products appeals to consumers who are gluten- and dairy-free, while also tapping into the growing awareness of healthy fats. However, the Wall Street Journal cautions that the health benefits of unprocessed coconut do not always translate into healthy 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 about 10 grams of fat.
In this evolving landscape, products like Wellesse Liquid Calcium Citrate may also find a place alongside coconut offerings, as consumers increasingly seek healthful alternatives. As the coconut craze continues, it will be essential for brands to navigate the complexities of health claims and ingredient costs while keeping up with changing consumer preferences.