Coconut Oil Market Forecasts to 2028 – Global Analysis By Nature (Organic, Conventional), Packaging (Steel Drums, Pouch), Application (Pharmaceuticals, Chemicals), and By Geography
According to Stratistics MRC, the Global Coconut Oil Market is accounted for $3713.37 million in 2021 and is expected to reach $6001.98 million by 2028 growing at a CAGR of 7.1% during the forecast period. Coconut oil is made up of a mixture of saturated, monounsaturated, and polyunsaturated fats. Coconut oil is used as a hair oil as its excellent care product promotes hair health, shine, and growth. It has anti-inflammatory, anti-fungal, and anti-microbial properties, due to which it is used as a preventive healthcare measure. It is also used for body massage as it possesses anti-aging, antibacterial, antioxidant, and anti-inflammatory properties.
Increasing demand for natural cosmetic products
People are majorly focusing on taking the best care of their hair and skin. Women across the world are the major contributor to the sales of beauty and personal care products. Customer’s preferences have changed from artificial chemical products to natural products. The increasing usage of organic and natural products is likely to drive the growth of the coconut oil market.
Higher dependency of the manufacturers on the import of coconut oil
Manufacturers across various nations are highly dependent on importing coconut oil from other countries with high availability, for the manufacturing of different products. This creates a gap between demand and supply of coconut oil, which increases the prices of various final products that would limits the demand and growth of the coconut oil market. Several nations have a sufficient amount of coconut oil to export, however, companies in other nations need to buy it, which increases the overall cost of their products.
Potential application as biofuel
Biofuels are increasing in demand because of their environmentally friendly nature. Coconut oil blends yield a very comparable output of energy to conventional diesel, and its exhaust contains less harmful emissions compared to conventional diesel exhaust. Coconut oil in Pacific countries is highly used in transport and electricity generation due to its lower local cost thus increasing opportunities for the coconut oil market.
Supply of raw materials
Because of unpredictable weather patterns of heavy rains and drought as well as general neglect of the crop, the coconut oil production has been shrinking due to the low availability of raw materials. Coconut oil is produced from copra and fresh coconut meat. Several factors such as diseases and floods might limit the production of coconuts leading to losses in the coconut oil market. Thus, an irregular supply of raw materials acts as a threat challenge for the coconut oil market.
The organic segment is expected to be the largest during the forecast period
The organic segment is estimated to have a lucrative growth as the increasing demand for organic products worldwide because of this many key players operating in the coconut oil market are supporting farmers to grow coconuts organically by providing proper knowledge and helping them get certified for their produce.
The cosmetics & personal care segment is expected to have the highest CAGR during the forecast period
The cosmetics & personal care segment is anticipated to witness the fastest CAGR growth during the forecast period as coconut oil is used as one of the components of cosmetic ingredients, majorly as a smoothening agent and as a source of smooth skin and to improve the dryness of skin and hairs. Companies are focusing on the development of extraction and processing of coconut oil to discover new beauty applications.
Region with highest share:
North America is projected to hold the largest market share during the forecast period due to technological advancement, which has increased its usage in various industries, and the growing trend of ready-to-eat meals and processed food. In the US, coconut oil is mainly used in organic form in confectionery products for health benefits. It is also used as a base for gelling agents in confections, for thickeners in products such as pastry and pie fillings, and in instant puddings.
Region with highest CAGR:
Europe is projected to have the highest CAGR over the forecast period owing to increasing awareness among consumers in the UK regarding the health and environmental benefits of clean label products and growing usage of coconut oil in the preparation of food like snacks, ready-to-eat meals, bakery products, and confectioneries. The increasing concern regarding the use of ingredients in food & beverage products, coupled with rising health awareness, has led the consumers to demand more natural and organic food products in the region.
Key players in the market
Some of the key players profiled in the Coconut Oil Market include CIIF OMG, Tantuco Enterprises, Inc., Sun Bionaturals Private Ltd, ADM, Royce Food Corporation, Bunge Limited, Novel Nutrients Pvt. Ltd., Mangga Dua, Jiangxi Planty Manor Health Industry Co., Ltd., Hancole, Greenville Agro Corporation, Connoils LLC, Aromaax International, Cargill Incorporated, Bo International, Aluan, Rmayra Naturals, Adams Group, Shree Western G & C Ind., Celebes Coconut Corporation and Marico Limited.
In Feb 2020, Bunge Limited launched a new portfolio of products to help replicate the taste, texture, and cooking experience of meat. This portfolio includes specialty fat fractions, shortenings, flakes, and emulsifiers that leverage high-stability sunflower, canola, coconut, and palm fruit oils.
In May 2019, Marico Limited launched Parachute Advansed Coconut Creme Oil, a unique blend of nourishing coconut oil and soft coconut milk. This oil would bring back the wonders of oiling via a new age format, which provides the softness of coconut milk and strength of coconut oil.
• Coconut Refined, Bleached and Deodorized (RBD) Oil
• Virgin Coconut Oil
• Wet Coconut/Fresh
• Dry coconut
Product Types Covered:
• Partially Hydrogenated
• Low White or Low Whole Products
• Fully Hydrogenated
Price Points Covered:
• Steel Drums
• Glass Jars
• Flexi Tanks/ISO Tanks
• Plastic Bottles
• Squeeze Tubes
Distribution Channels Covered:
• Supermarket and Hypermarket
• Modern Trade Units
• Direct Distribution
• Convenience Stores
• Cosmetics & Personal Care
• Household Detergents
• Metalworking Fluids
• Food & Beverages
• Paints and Coatings
• North America
Rest of Europe
• Asia Pacific
Rest of Asia Pacific
• South America
Rest of South America
• Middle East & Africa
Rest of Middle East & Africa
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