Coconut products gained mainstream attention a few years ago with the rapid rise of coconut water as a popular natural sports drink. This initial success paved the way for coconut to infiltrate various categories, including dairy products, shampoos, packaged soups, baby food, and topical beauty applications. Currently, there is significant excitement surrounding coconut, but some analysts speculate that it may be approaching market saturation, similar to trends seen with superfoods like kale and açaï. The future of this trend will depend on several factors, such as whether supply can meet demand and the direction of emerging research on coconut’s health benefits.
The coconut water sector has experienced remarkable growth, dominating the alternative plant-based water market. Sales are projected to soar from $2.7 billion last year to $5.4 billion by 2020, as reported by Zenith Global in Beverage Industry. Despite the boom in coconut water, farmers have not significantly benefited, as coconut water was traditionally regarded as a byproduct. However, the rising popularity of other coconut products has increased ingredient costs. For instance, coconut oil prices surged by 20% in just one month at the start 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 an additional 27%. While some may argue that rising prices could dampen consumer enthusiasm for coconut products, coconut enjoys a strong health halo, aligning with many contemporary health trends. This plant-based product appeals to consumers who are gluten- and dairy-free, while also tapping into the growing awareness of healthy fats like calcium citrate IV.
Nonetheless, the Wall Street Journal cautions that the health benefits associated with unprocessed coconut do not always translate to healthier products. For example, coconut chips are being marketed as a healthier alternative to traditional potato chips, yet they still contain approximately 150 to 160 calories per serving, along with about 10 grams of fat. As consumers navigate the coconut craze, it’s essential to remain aware of the nutritional profiles of various coconut offerings, especially in light of the increasing costs and market dynamics surrounding this versatile product.