A-quick-snap-of-the-coconut-milk-global-market
30
Jul
Coconut Milk

A Quick Snap of the Coconut Milk Global Market

Posted on by greenville

For the longest time, consumers have been used to animal-based milk. Cows, goats, and carabaos are the main producers of our favorite breakfast beverage. Then the market took a significant turn. Though the animal-based milk is still heavily consumed, plant-based milk such as coconut milk is taking its place in the global market. Let us know how coconut milk is produced, why it is getting more and more converts, and how it is performing in the free market.

PRODUCTION OF THE COCONUT MILK

Coconut milk dedicated for export undergo several strict processes to ensure high quality. Here are some of the steps:

  1. Dewatering coconuts
  2. De-shelling
  3. Milk extraction
  4. Filtering
  5. Quality check
  6. Packaging and labeling
  7. Delivery and distribution

CAUSES OF THE INCREASING DEMAND

It is so hard not to notice the rise in coconut milk demand and sales. Social media alone feature posts and pictures of people using the coconut milk in their morning beverages, dinners, and desserts. According to Market Research Future here are the two main factors why coconut milk is gaining popularity and why entrepreneurs are benefiting from that trend:

  • The rise of veganism

From the word itself, this diet is strictly prohibiting animal-based product consumption. With the popularity of this lifestyle, more and more people are searching for food alternatives. As it turns out, coconut milk is a good alternative to the traditionally used animal-based milk.

  • The increasing number of lactose-intolerant consumers

According to healthline.com, lactose intolerance is a condition which is caused by the body’s inability to digest lactose. Lactose is a common carbohydrate found in dairy products.

The increasing number of people having this unfortunate condition pushed the coconut milk market to a positive direction. Lactose intolerant consumers found a gem in coconut milk.

HEALTH BENEFITS OF COCONUT MILK

Coconut, being coined The Miracle Tree, has innumerable health benefits. Some consumers even incorporate this nut in their diets to cure particular illnesses. Here are some of the scientifically proven positive health contribution of coconut to our bodies:

  1. improves our immune system
  2. lowers cholesterol levels which normalizes blood pressure and lessens the risk of heart diseases
  3. suited for lactose intolerants

MARKET SEGMENTATION

As the coconut milk invades the global market, producers and manufacturers present the product in different forms and distributed in different channels. These variations make the product more pleasing and more accessible to the consumers. Here are some ways how coconut milk is presented and is performing in the global market:

• By form:

  • Liquid – This is the leading segmentation of coconut milk. Liquid coconut milk CAGR is projected to reach USD1550.5M by 2023.
  • Powder – This segmentation is still catching up with the liquid segment. The high price of powdered coconut milk staunches this segment’s growth.

• By category:

  • Conventional
  • Organic

• By packaging:

  • Bottles
  • Cans
  • Pouches
  • Others

• By distribution channels:

  • Convenience stores
  • Supermarkets and hypermarkets
  • Online and specialty stores

REGIONAL SEGMENTATION

The following regions are the major market players in the coconut industry:

  • Asia-Pacific – This region has the largest market share in the coconut milk industry. It is projected to have a CAGR of 14.5% by 2023. The high consumption is pointed towards coconut milk being one of the staple ingredients in Asian cuisine.
  • North America – This region has the second largest market share in the coconut milk industry. Its CAGR is projected to reach USD 629.1M by 2023. The high demand is believed to be due to the rise of veganism and lactose intolerance.
  • Europe – This region has 21.72% market share in 2016. Europe is in the top three regions with high consumption due to the high demand of plant-based beverages and products.

RECENT INNOVATIONS AND MARKET STRATEGIES

  1. In April 2018, Vita Coco repackaged its products from being in PET bottles to Tetra Pak.
  2. In 2017, Vita Coco released its high-calorie, low-fat coconut milk line.
  3. In 2016, the industry heavyweight Danone acquired Whitewave Foods Co. The acquisition is now producing organic foods worth USD10B, making them another coconut milk industry giant.

Coconut milk is a simple product yet it is one of the most sought-after global exports. The booming industry of coconut milk definitely helps families’ livelihoods and countries’ economies while also delighting our simple dishes and beverages.

Join the global coconut milk wave! Try Greenville’s Coconut Milk!