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 published its data in 2020 mentioning that the sales of plant-based milk surged by 5% the same year in the U.S. Companies are also grabbing this opportunity to launch their products in the market. As per a report by Fortune Business Insights™, titled, “Coconut Milk Market Size, Share & COVID-19 Impact Analysis, By Nature (Organic, Conventional), Form (Powder and Liquid), Distribution Channel (Supermarkets/ Hypermarkets, Convenience Stores, Grocery Stores, and Online Retails), and Regional Forecast, 2021-2028,” the market stood at USD 919.57 million in 2020. It is projected to grow from USD 1,009.07 million in 2021 to USD 2,172.49 million in 2028 at a CAGR of 11.58% in the forecast period.
COVID-19 Pandemic: Disturbances in Raw Material Transportation to Hinder Growth
The outbreak of the COVID-19 pandemic has affected the market severely. Lockdown norms implemented by renowned regulatory bodies worldwide have resulted in the disruption in raw material transportation and high prices. Coconut and associated product manufacturers are therefore unable to continue their manufacturing processes. These factors are set to decline the demand for this type of milk amid the pandemic.
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 nowadays are inclining rapidly towards plant-based products as they are considered to be healthier and safer, compared to animal-originated products. The Vegan Society, for instance, declared that in Europe, the U.K. is showcasing an exponential growth in its plant-based milk sector. In 2019, it stood at USD 320.6 million in the overall European market. At the same time, several people are practicing vegan diets worldwide. This is encouraging numerous companies to incorporate plant-based milk in a wide range of confectionery and bakery items. In February 2021, the Scottish Government announced that it would soon include plant-based milk alternatives on a government-funded early learning milk scheme and nursery. Additionally, the surging prevalence of lactose intolerance has compelled people to opt for coconut milk.
However, coconut farming depends mainly on climatic conditions. As the amount of greenhouse gas emissions is increasing, the global climatic conditions are also changing at a fast pace. Therefore, the frequent harsh weather conditions may hamper the coconut milk market growth in the near future.
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.
Increasing Production of Coconuts in Sri Lanka to Help Asia Pacific Dominate
In 2020, Asia Pacific earned USD 398.08 million in terms of revenue owing to the rising trade activities of coconut-based products between major Asian countries and others. Sri Lanka, Indonesia, and Thailand are considered to be the major producers of coconut in this region. As per Sri Lanka Export Development Board, the country’s total coconut production accounts for around 12% and in 2017, approximately 2,500 -3000 million coconuts were produced. Europe, on the other hand, is estimated to show high growth stoked by the increasing adoption of this milk in numerous bakery products, such as cookies, pies, and cakes.
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.