The global coconut milk market is set to gain traction from the increasing awareness among consumers about the health benefits associated with vegan diet. The Plant Based Foods Association reported in 2020 that sales of plant-based milk in the U.S. surged by 5% that year. Companies are seizing this opportunity by launching new products in the market. According to a report by Fortune Business Insights™, titled “Coconut Milk Market, 2024-2032,” the market was valued at USD 1,249.99 million in 2023. It is projected to grow from USD 1,393.43 million in 2024 to USD 3,380.15 million by 2032, with a CAGR of 11.71% during the forecast period.
The expansion of the coconut milk and cream market is expected to be driven by increasing consumer concerns about traditional dairy-based food and beverages, leading to a shift towards vegan diets. The growing popularity of coconut-derived food products reflects a broader consumer trend towards plant-based foods. This shift is influenced by natural health concerns, ethical or religious beliefs, environmental awareness, and animal rights issues. Coconut milk and cream are becoming essential ingredients in vegan diets, and the global vegan population is increasing, regardless of the criteria, motivations, or types of veganism. This trend is fueling the demand for dairy-free food products.
Information Source: https://www.fortunebusinessinsights.com/coconut-milk-market-105439
Segments-
Organic Segment Held 26.80% Share in 2020: Fortune Business Insights™
Based on nature, the market for coconut is bifurcated into conventional and organic. Out of these, the organic segment procured 26.80% in terms of the coconut milk market share in 2020. This growth is attributable to the increasing trend of consuming clean-label products. Besides, organic products are gaining high popularity because of the rising demand for pesticide and chemical-free products from consumers.
Report Coverage-
We follow an innovative research methodology that includes data triangulation on the basis of bottom-up and top-down approaches. We conduct extensive primary research to validate the projected market numbers. We also derive information from paid databases, industry journals, SEC filings, and other authentic resources. The report includes numerous details, such as drivers, opportunities, challenges, and dynamics of the market.
Drivers & Restraints-
Increasing Incorporation in Bakery and Confectionery Items to Bolster Growth
Consumers are increasingly gravitating towards plant-based products, which are perceived as healthier and safer than animal-origin products. The Vegan Society highlighted that the U.K. is experiencing significant growth in its plant-based milk sector, with the market valued at USD 320.6 million in 2019 within the overall European market. This trend is mirrored globally, with more people adopting vegan diets, prompting numerous companies to integrate plant-based milk into a variety of confectionery and bakery items. In February 2021, the Scottish Government announced plans to include plant-based milk alternatives in a government-funded early learning milk scheme and nursery programs. Additionally, the rising prevalence of lactose intolerance is driving consumers to choose coconut milk.
However, coconut farming is heavily reliant on climatic conditions. The increasing levels of greenhouse gas emissions are accelerating global climate change, resulting in more frequent severe weather conditions. These harsh weather events could pose a threat to the growth of the coconut milk market in the near future.
Regional Insights-
Increasing Production of Coconuts in Sri Lanka to Help Asia Pacific Dominate
In 2020, the Asia Pacific region generated USD 398.08 million in revenue, driven by increased trade activities of coconut-based products among major Asian countries and other regions. Sri Lanka, Indonesia, and Thailand are prominent producers of coconuts in this area. According to the Sri Lanka Export Development Board, the country contributes approximately 12% to the global coconut production, with about 2,500 to 3,000 million coconuts produced in 2017.
Conversely, Europe is expected to demonstrate significant growth due to the rising adoption of coconut milk in various bakery products, including cookies, pies, and cakes.
Competitive Landscape-
Key Players Focus on Introducing New Products to Attract More Consumers
The market houses a large number of international and domestic companies that are presently focusing on launching unique products infused with coconut milk to attract more consumers. A few others are joining hands with start-up firms to co-develop novel food products containing this ingredient. Below are the two crucial industry developments:
- June 2020: Epigamia introduced a new line of plant-based yogurt in India. It is made of coconut milk and has a creamy texture. It is available in two flavors, namely, Coconut Jaggery and Unsweetened. Both are free from preservatives and high in probiotics.
- March 2020: Kite Hill unveiled two new products, including Kite Hill Sour Cream Alternative, a plant-based sour cream made with almond milk and coconut, as well as Kite Hill Blissful, a creamy and thick range of yoghurts made of coconut milk.
A list of reputed vendors operating in this market:
- Danone S.A. (Paris France)
- Nestle S.A. (Vevey, Switzerland)
- Dabur India Ltd. (Ghaziabad, India)
- Cocomi Bio Organic (Sri Lanka)
- The Coconut Company (UK) Ltd. (United Kingdom)
- Coconuts of the Caribbean Ltd. (Tune Puna, Trinidad and Tobago)
- Thai Coconut Public Company Ltd. (Thailand)
- Sari Segar Husada (Indonesia)
- Celebes Coconut Corporation (Cebu, Philippines)
- Merit Food Products Co., Ltd. (Nong Khang Khok, Thailand)
