Market Trends of Coconut Products Industry
This section covers the major market trends shaping the Coconut Products Market according to our research experts:
Growing Adoption of Vegan and Flexitarian Diet
The market growth is attributed to the increasing consumer awareness about the health benefits associated with plant-based food. This incremental shift toward a plant-based diet is primarily influenced by ecological concerns, health consciousness, ethical or religious beliefs, environmental issues, and animal rights awareness. Furthermore, improved animal welfare and increasing government initiatives influence consumers to adopt vegan diets. For instance, in 2020, the Government of India launched the '#EatRightIndiacampaign' and requested Indians to opt for plant-based foods for sustainable living and to fight against climate change. In addition, consumers who cannot choose a completely vegetarian diet practice are adopting the flexitarian lifestyle to incorporate plant-based food alternatives like coconut products. For instance, a consumer study conducted by Berlin-based plant-based supermarket chain Veganzin 2021 reveals that around 22% of Europeans are flexitarians, whereas Germany, Portugal, and Austria exhibit large numbers of flexitarian consumers. Regardless of classification criteria, reasons, or types, the number of vegans worldwide is on the rise, driving the demand for plant-derived food products, including coconut products. Globally, the data cited by several global institutions indicates that the transition to a vegan lifestyle has happened over the past few years. Many countries have witnessed the rise in vegan consumers, especially over the past decade. Therefore, health benefits, easier digestion, and nutritional values of a plant-based diet are key factors driving the demand for coconut products worldwide.
North America Dominates the Market
The North American region is the largest market because of the rising demand for coconut products. Growing lactose intolerance among consumers boosts the manufacturers of dairy alternatives, like coconut milk and cream. As per the data from the National Institute of Diabetes and Digestive and Kidney Diseases, in the United States, about 36% of people have lactose malabsorption. This factor is fueling the market for coconut milk and cream. Ready to drink coconut milk category is driving the studied market in Mexico, people are becoming more health conscious, and the ready-to-drink coconut milk is giving tough competition to the high sugar content soda products. As per the data from the International diabetes federation, In 2021, 14 million adults in Mexico will be living with diabetes, which is a 10% rise in the past two years. This factor pushes consumers towards healthy alternative drinks, and coconut drinks are one of the leading categories. In addition, the processors are seeking fair trade certifications for coconut products, including milk and cream. The increasing adoption of powdered forms as one of the economic alternatives, with a higher shelf-life for coconut milk, is driving the demand from the bakery, confectionery, and other segments. In February 2022, Harmless Harvest, a manufacturer of organic coconut-based food and beverage products, expanded its operation in Canada by introducing famed Organic Coconut Water in the Costco Western Canada Region.
