Market Analysis and Insights:
The market for Coconut Oil was estimated to be worth USD 5.29 billion in 2023, and from 2023 to 2033, it is anticipated to grow at a CAGR of 6.84%, with an expected value of USD 9.86 billion in 2033.
The growth of the coconut oil market stems from a variety of significant factors. Initially, a key driver is the expanding consumer knowledge of the health advantages associated with coconut oil. This natural product is recognized for its abundance of beneficial fats, its support for heart health, its role in weight management, and its antimicrobial properties. Health-conscious individuals are gravitating towards healthier alternatives to conventional cooking oils, contributing to the surge in demand for coconut oil. Additionally, the increasing preference for natural and organic goods has bolstered the market for coconut oil. Consumers are actively seeking chemical-free options, and coconut oil aligns with this trend due to its typical production methods that eschew chemicals and additives. Moreover, the versatility of coconut oil has led to its widespread utilization, including in beauty and personal care products like skincare, haircare, and cosmetics, further propelling market growth. The rise in plant-based diets and the surge in veganism have further fueled the demand for coconut oil. Given that coconut oil is plant-derived, it serves as a suitable choice for individuals adhering to these dietary preferences. In sum, the driving forces behind the coconut oil market encompass increased consumer awareness of its health benefits, the growing clamor for natural and organic options, its broad applicability across various sectors, and the influence of plant-based diets and vegan lifestyles.
Coconut Oil Market Scope:
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2033 |
| Study Period | 2018-2033 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2033 | USD 9.86 billion |
| Growth Rate | CAGR of 6.84% during 2023-2033 |
| Segment Covered | By Nature, By Source, By Product Type, By End-Use, By Distribution Channel , By Region. |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | Cargill Inc., Nutiva Inc., Barlean's Organic Oils LLC, Spectrum Naturals Products LLC, Viva Labs Inc., Dr. Bronner's Magic Soaps, P&G Chemicals, Adani Group, Bunge Limited, and Marico Limited. |
Market Definition
Derived from the meat of coconuts, coconut oil is a well-liked edible oil that finds frequent application in culinary endeavors. Renowned for its elevated levels of saturated fats and associated health-promoting attributes, it is often selected for various cooking and baking purposes.
Coconut oil is a highly valued natural substance that has garnered attention for its myriad health advantages and diverse applications. This oil boasts a high content of beneficial saturated fats, especially medium-chain fatty acids such as lauric acid, recognized for their antibacterial, antiviral, and anti-inflammatory characteristics. Consumption of coconut oil can play a beneficial role in heart health through the elevation of beneficial HDL cholesterol levels and enhancement of the overall cholesterol profile. Moreover, this oil has been associated with aiding in weight management, as its medium-chain fatty acids are readily metabolized and can enhance energy expenditure. Additionally, coconut oil is frequently utilized in skincare formulations for its hydrating and antibacterial attributes, which help nurture healthy skin and hair. With its versatile properties, coconut oil serves purposes such as cooking, baking, moisturizing, and even functioning as a natural toothpaste. In essence, the significance of coconut oil lies in its potential health perks, rendering it a valuable component of a well-rounded and wholesome lifestyle.
Key Market Segmentation:
Insights On Key Nature
Organic
The Organic nature is expected to dominate the Global Coconut Oil Market. With growing consumer awareness about the harmful effects of chemicals and additives, there has been a significant shift towards natural and organic products. Consumers are gravitating towards healthier alternatives and seeking out organic options due to their perceived benefits such as being free from pesticides, genetically modified organisms (GMOs), and synthetic fertilizers. The demand for Organic Coconut Oil is driven by health-conscious individuals who prioritize sustainability and ecological balance. The rising trend of clean eating and wellness is fueling the growth of the organic in the global coconut oil market.
Conventional
The Conventional nature of the Global Coconut Oil Market is also a significant player but is not expected to dominate the market as compared to the Organic nature. While the demand for conventional coconut oil still exists due to its affordability and wide availability, the preference for organic coconut oil is growing rapidly. Conventional coconut oil is typically made from copra, which is produced by drying the coconut flesh under unsanitary conditions. This process may involve the use of chemicals and preservatives, which may deter health-conscious consumers. However, conventional coconut oil still has its place in industries such as food processing and cosmetics where cost-effectiveness and mass production are critical factors.
Insights On Key Source
Dry coconut
Dry coconut is expected to dominate the Global Coconut Oil Market. This can be attributed to its widespread availability, long shelf life, and higher oil content compared to wet coconut. Dry coconut undergoes a process of drying and dehusking, resulting in the extraction of oil from the dried kernel. The extraction process of dry coconut oil involves cold pressing or expeller pressing, preserving the nutritional value and quality of the oil. Furthermore, dry coconut oil is widely used in various industries such as food, cosmetics, and pharmaceuticals, due to its versatile applications and health benefits. Its dominance in the market is likely to be driven by its popularity as a cooking oil, as well as its usage in personal care and wellness products.
Wet coconut
While dry coconut is expected to dominate the Global Coconut Oil Market, the wet coconut source still holds a significant share. Wet coconut refers to the fresh coconut, which is harvested before the drying process. Although the oil content in wet coconut is relatively lower compared to its dry counterpart, it is commonly used for immediate consumption. Wet coconut oil primarily finds its applications in traditional cooking practices, especially in regions where coconut is abundantly grown. Additionally, wet coconut oil is utilized in the preparation of various regional dishes and as an ingredient in homemade beauty remedies. Despite its lower oil content, the demand for wet coconut oil remains stable in the market due to its unique flavor and inclusion in cultural cuisines.
Insights On Key Product Type
Virgin or Extra Virgin
The Virgin or Extra Virgin product type is expected to dominate the Global Coconut Oil Market. Virgin and Extra Virgin coconut oil is made from fresh coconut meat, without any additional refining or processing. This part is favored by consumers who value natural and minimally processed products. Virgin and Extra Virgin coconut oil is known for its distinct aroma and flavor, as well as its potential health benefits. With the growing demand for organic and natural products, the Virgin or Extra Virgin part is projected to experience significant growth in the Global Coconut Oil Market.
Refined
The Refined product type is another important player of the Global Coconut Oil Market. Refined coconut oil undergoes various processing techniques, including bleaching and deodorizing, to remove impurities and enhance its shelf life. This part is popular among consumers who prefer a more neutral taste and aroma in their cooking oils. Refined coconut oil is often used in food processing and industrial applications due to its higher smoke point and stability. While the demand for refined coconut oil may not be as high as the Virgin or Extra Virgin part, it still plays a significant role in the overall market.
Partially Hydrogenated
The Partially Hydrogenated product type is expected to have a smaller market share compared to the Virgin or Extra Virgin and Refined product types. Partially Hydrogenated coconut oil is produced through the hydrogenation process, which converts liquid oil into a solid or semi-solid form. This part is commonly used in the food industry for its improved texture and stability. However, partially hydrogenated oils have been linked to health concerns, primarily because of their high trans fat content. As a result, there has been a shift towards healthier alternatives, and the demand for partially hydrogenated coconut oil is expected to decline in the Global Coconut Oil Market.
Insights On Key End-Use
Food and Beverages
The Food and Beverages end-use is expected to dominate the Global Coconut Oil Market. This is supported by the increasing consumer demand for natural and healthier food ingredients, as coconut oil is known for its numerous health benefits and versatile culinary applications. Moreover, coconut oil is widely used in the food and beverage industry for cooking, baking, confectionery, and as an ingredient in various food products such as snacks, dairy alternatives, and functional beverages. The growing awareness about the potential health benefits of coconut oil, including its antioxidant and antimicrobial properties, further contributes to its dominance in the food and beverages sector.
Cosmetics and Personal Care
In the Cosmetics and Personal Care end-use, coconut oil holds significant potential. Its popularity as an ingredient in skincare and haircare products is rising due to its natural moisturizing and nourishing properties. Coconut oil is used in various cosmetic applications such as body lotions, creams, lip balms, hair oils, and shampoos. Its ability to effectively hydrate and condition the skin and hair, as well as its potential antimicrobial properties, make coconut oil a preferred choice for many consumers. While the Cosmetics and Personal Care part has a substantial market share, it is expected to be overshadowed by the dominance of the Food and Beverages part.
Pharmaceutical
In the Pharmaceutical end-use, coconut oil has been gaining attention for its potential therapeutic benefits. Studies have suggested that coconut oil may have antimicrobial, anti-inflammatory, and antioxidant properties, which are beneficial in various medical applications. Coconut oil is being explored for its potential use in treating skin conditions, promoting wound healing, and as a carrier oil for medications. Despite its potential in the pharmaceutical industry, the dominance of the Food and Beverages part outweighs its market share.
Household/Retail
In the Household/Retail end-use, coconut oil finds application as a versatile ingredient in various household products. It is commonly used as a natural and eco-friendly alternative to conventional cleaning and disinfecting agents. Coconut oil-based products such as soaps, detergents, candles, and air fresheners have gained popularity among environmentally conscious consumers. However, the dominance of the Food and Beverages part limits the growth potential of coconut oil in the Household/Retail sector.
Others
The Others category includes niche and emerging uses of coconut oil, such as in the biofuel, animal feed, and industrial sectors. Coconut oil's high saturated fat content makes it a potential feedstock for biofuel production. Additionally, it can be used as a supplement in animal feed to enhance livestock health. However, despite these niche applications, the dominance of the Food and Beverages part considerably outweighs the market share of coconut oil in the "Others" category.
Insights On Key Distribution Channel
Business to Consumer
The sector that is expected to dominate the Global Coconut Oil Market is the Business to Consumer (B2C) . This is due to the increasing demand for coconut oil among individual consumers for various applications such as cooking, personal care, and healthcare. The B2C distribution channel allows coconut oil to be directly sold to consumers through retail outlets, supermarkets, online platforms, and specialty stores. With the rising awareness about the health benefits of coconut oil, such as its ability to promote heart health, boost immunity, and improve skin and hair care, the demand for coconut oil among individual consumers is expected to grow significantly. Therefore, the B2C distribution channel is projected to dominate the Global Coconut Oil Market in the coming years.
Business to Business
While the Business to Consumer (B2C) is expected to dominate the Global Coconut Oil Market, the Business to Business (B2B) sector also plays a crucial role in the industry. The B2B distribution channel involves selling coconut oil to businesses, such as food manufacturers, cosmetics companies, and pharmaceutical companies, who use coconut oil as an ingredient in their products. The demand for coconut oil in business-to-business transactions is driven by the need for bulk quantities and consistent supply to meet the production requirements of various industries. Although the B2B may not dominate the market in terms of volume, it is an essential part of the coconut oil supply chain, contributing to the overall growth and stability of the industry.
Insights on Regional Analysis:
Asia Pacific
The Asia Pacific region is expected to dominate the global coconut oil market. This can be attributed to the region's high production and consumption of coconut oil. Countries like the Philippines, Indonesia, and India are major producers of coconuts and also have a longstanding tradition of using coconut oil in their cuisine and for various other purposes such as skincare and haircare. Additionally, the increasing awareness about the health benefits of coconut oil, its versatility in cooking, and its use in the cosmetic industry further contribute to the dominance of the Asia Pacific region in the global coconut oil market.
North America
In North America, the consumption of coconut oil has been steadily increasing due to the growing popularity of plant-based and natural products. The region has witnessed a rise in health-conscious consumers who are interested in incorporating organic and natural ingredients in their diet. This, combined with the use of coconut oil as a supplement for increasing energy levels and promoting weight loss, has led to a significant demand for coconut oil in North America. However, despite the rising consumption, the North American market for coconut oil is still relatively smaller compared to the Asia Pacific region.
Europe
While Europe does not have a traditional culture of using coconut oil extensively, the market for coconut oil has experienced significant growth in recent years. This can be attributed to the increasing awareness about the health benefits of coconut oil, its use in the personal care and cosmetics industry, and the rise in demand for natural and organic ingredients in the European market. The growing popularity of coconut-based cuisines and vegan diets has also contributed to the increasing consumption of coconut oil in Europe. However, the European market for coconut oil is still smaller compared to the Asia Pacific region.
Latin America
The Latin American region has a rich history of coconut cultivation and the production of coconut oil. Countries like Brazil, Mexico, and Colombia are major producers of coconuts and coconut-based products. Coconut oil is widely used in Latin American cuisine and is an essential ingredient in many traditional dishes. Additionally, the region's warm climate is conducive to coconut production, leading to a steady supply of coconuts for oil extraction. While the consumption of coconut oil in Latin America is significant, it is not expected to dominate the global coconut oil market.
Middle East & Africa
The Middle East & Africa region is not a major player in the global coconut oil market. The climatic conditions in much of the region are not suitable for coconut cultivation, resulting in limited coconut oil production. However, there is a growing demand for coconut oil in the region due to its use in traditional medicine and as a natural beauty product. Moreover, the increasing health consciousness and awareness of the benefits of coconut oil are also driving the demand in this region. Despite these factors, the Middle East & Africa region is not expected to dominate the global coconut oil market.
Company Profiles:
Prominent figures in the worldwide Coconut Oil industry, including Cargill, Wilmar International, and Sime Darby Plantation, hold crucial positions in the creation, circulation, and promotion of coconut oil goods in diverse geographical areas. Their active involvement propels market expansion and shapes industry developments.
These industry companies actively contribute to the advancement of the international Coconut Oil industry by deploying inventive tactics, enlarging their manufacturing infrastructures, and participating in alliances and cooperative ventures to meet the escalating need for coconut oil and leverage new market prospects. Prominent companies in the coconut oil industry encompass Cargill Inc., Nutiva Inc., Barlean's Organic Oils LLC, Spectrum Naturals Products LLC, Viva Labs Inc., Dr. Bronner's Magic Soaps, P&G Chemicals, Adani Group, Bunge Limited, and Marico Limited. Engaged in the manufacturing, refining, and delivery of coconut oil goods, they vie by presenting a range of coconut oil variants, including virgin, refined, and organic, to fulfill the varied tastes of consumers. These leading entities prioritize research and development endeavors to enhance the caliber and sustainability of their offerings. Furthermore, they deploy astute marketing strategies to broaden their clientele and sustain a competitive advantage in the constantly expanding coconut oil sector.
COVID-19 Impact and Market Status:
The global market for coconut oil has been significantly impacted by the Covid-19 pandemic, causing disruptions in supply chains and changes in consumer preferences.
The global spread of COVID-19 has brought about both positive and negative effects on the coconut oil market. Increased consumer focus on health and well-being has led to a rise in the demand for coconut oil, attributed to its numerous health advantages including immune-boosting properties and metabolism enhancement. Consequently, sales of coconut oil have surged as individuals seek to fortify their immune systems amidst the pandemic.
However, the coconut oil industry is grappling with substantial obstacles, such as supply chain disturbances triggered by the pandemic which have resulted in elevated transportation expenses and shipment delays, consequently leading to higher coconut oil prices. Furthermore, lockdown measures imposed in various countries have adversely affected the production and export of coconut oil, culminating in a reduction in overall supply. In essence, while the COVID-19 crisis has sparked an upsurge in coconut oil demand due to its health benefits, challenges like supply chain disruptions and increased costs have confronted the industry.
Latest Trends and Innovation:
- In September 2021, Golden Agri-Resources Ltd acquired PT Bunsar Daya Agrindo, an Indonesian coconut plantation, to strengthen its position in the coconut oil market.
- In July 2021, Cargill Inc invested in its facility in the Philippines to increase its production capabilities for coconut oil.
- In June 2021, Wilmar International Ltd collaborated with Hero Group to launch a range of coconut oil-based products in India.
- In May 2021, Marico Ltd introduced a cold-pressed pure coconut oil variant under its brand name, Parachute, catering to the rising demand for natural and healthier coconut oil options.
- In February 2021, Nutiva, a leading organic coconut oil brand, launched a new packaging design for its coconut oil range.
- In January 2021, Nature's Way, a subsidiary of Schwabe Group, introduced an extra-virgin coconut oil supplement, expanding its product portfolio in the coconut oil market.
- In November 2020, Colgate-Palmolive Company launched a new line of coconut oil-based toothpaste under its brand Colgate Natural Extracts, tapping into the growing trend of natural and organic personal care products.
- In October 2020, Nutiva partnered with One Tree Planted, a non-profit organization, to plant trees in coconut-growing regions to support sustainable coconut farming.
- In September 2020, Bioriginal Food & Science Corp, a subsidiary of Omega Protein Corporation, introduced a range of certified organic coconut oil products sourced from Sri Lankan coconuts.
- In July 2020, China-based COFCO Group invested in the construction of a coconut oil processing plant in Indonesia to expand its presence in the Southeast Asian market.
Significant Growth Factors:
The expansion of the coconut oil industry can be credited to the growing recognition among consumers of its health advantages and the escalating demand for natural and organic goods.
The coconut oil industry is poised for significant expansion in the foreseeable future, driven by several key factors. Primarily, the ened awareness among consumers regarding the health advantages associated with coconut oil is a major driver of its increasing demand. With its rich concentration of easily digestible saturated fats that promote the elevation of beneficial cholesterol levels in the body, coconut oil has garnered attention for its health benefits. Moreover, the surge in preference for natural and organic products has further bolstered the growth of the coconut oil market. Consumers are actively seeking products devoid of synthetic additives and chemicals, making coconut oil a preferred option. Additionally, the burgeoning utilization of coconut oil in the beauty and cosmetics sector is forecasted to fuel market expansion. Renowned for its hydrating and enriching properties, coconut oil is extensively used in hair care, skincare, and personal care commodities.
Furthermore, the versatility of coconut oil in culinary roles, such as a cooking medium, flavor enhancer, and ingredient in the food industry, is driving its demand higher. Influential factors like rising discretionary incomes, evolving dietary choices, and the flourishing food and beverage sector are anticipated to contribute to the growth of the coconut oil market. Collectively, the convergence of health consciousness, natural and organic trends, expanding applications, and favorable market conditions is primed to propel the coconut oil market towards substantial growth in the upcoming years.
Restraining Factors:
The increasing worries regarding the elevated levels of saturated fat found in coconut oil are inhibiting its market expansion.
The coconut oil industry encounters various obstacles that impede its advancement and possibilities. Firstly, the presence of substitute oils like palm oil, olive oil, and sunflower oil restricts the demand for coconut oil within the food sector as these alternatives are frequently more cost-effective and easily accessible. Secondly, concerns regarding the high saturated fat content of coconut oil have prompted some consumers to seek out healthier options.
Moreover, price fluctuations of coconut oil due to factors such as weather variations, political unrest, and global trade regulations introduce uncertainties for both producers and consumers. Additionally, restricted access to regions where coconuts are cultivated and the labor-intensive nature of coconut farming present difficulties in establishing a consistent supply chain.
Inadequate infrastructure for storage and transportation in certain areas further impedes the efficient distribution of coconut oil. Finally, insufficient awareness about the diverse uses and health advantages of coconut oil in specific markets restricts its consumption. Despite these challenges, positive prospects exist for the coconut oil sector. The increasing trend towards natural and organic products, alongside the growing popularity of coconut-based beauty and personal care items, create opportunities for market expansion.
Moreover, continuous research and development efforts aimed at enhancing product quality, lowering saturated fat content, and discovering new applications are anticipated to enhance the market's growth potential in the foreseeable future.
Key Segments of the Coconut Oil Market
Nature Overview
• Organic
• Conventional
Source Overview
• Dry Coconut
• Wet Coconut
Product Type Overview
• Virgin or Extra Virgin
• Refined
• Partially Hydrogenated
End-Use Overview
• Food and Beverages
• Cosmetics and Personal Care
• Pharmaceutical
• Household/ Retail
• Others
Distribution Channel Overview
• Business to Business
• Business to Consumer
Regional Overview
North America
• US
• Canada
• Mexico
Europe
• Germany
• France
• U.K
• Rest of Europe
Asia Pacific
• China
• Japan
• India
• Rest of Asia Pacific
Middle East and Africa
• Saudi Arabia
• UAE
• Rest of Middle East and Africa
Latin America
• Brazil
• Argentina
• Rest of Latin America
Frequently Asked Questions (FAQ) :
The market value of coconut oil market in 2033 was USD 9.86 billion.
The coconut oil market is growing at a CAGR of 6.84% over the forecast period.
The base year for the report is 2023 in coconut oil market.
North America dominated the market for coconut oil market and accounted for the largest revenue share.
The top companies that hold the market share in coconut oil market are Cargill Inc., Nutiva Inc., Barlean's Organic Oils LLC, Spectrum Naturals Products LLC, Viva Labs Inc., Dr. Bronner's Magic Soaps, P&G Chemicals, Adani Group, Bunge Limited, and Marico Limited.