Product Performance, Projections, and Segmentations in the Global Market
In Asian countries, coconut water or also known as coconut juice, the liquid extracted from young green coconuts, has long been considered a power drink.
Hot day? Refresh with coconut water.
After workout? Refuel with coconut water.
Hangover? Detoxify with coconut water.
With all the coconut water’s amazing feats, it is undeniable that it is currently conquering the global market. In fact, in Brazil, coconut water has already defeated the sales of the long-been-dominating orange juice. With the growth rate coconut water is taking, it is not far to see coconut water to take over the sales of the other traditional beverages in other countries, not just in Brazil. Now let’s learn why and how coconut water is charming the rest of the world.
CAUSES OF HIGH DEMAND
The increase in product demand and popularity is a combination of several significant factors. No one can really pin-point which specific thing drove the coconut water’s sales. Here are, nonetheless, the observed causes of the product’s increasing demand:
1. Celebrity promotion
Since the rise of the social media, people are always in-the-know of celebrities’ lifestyles. Oftentimes, whatever the celebrities use, their followers use them too. Followers consider their favorite celebrities to be authorities in their product consumption.
Recently, many celebrities are seen holding and consuming coconut juice, whether just for a selfie or in an after-workout post. This promotion is advantageous to the coconut water industry. As more and More celebrities are seen with coconut water, more common people grab the product from their local stores. As celebrities’ mention that this beverage is part of their diets, common people follow suit.
2. The rise of a health-conscious generation
Nowadays, more people are subscribing to trending diets such as paleo, atkins, keto, vegan, and many others. The rise of these diets and the increasing number of gyms can be signs that people are becoming more mindful of their health and fitness. Because of this phenomenon, consumers are also searching for healthier alternatives to food especially to sugary drinks and soft drinks. This is where the coconut water takes the spotlight.
Coconut water, being a plant-based beverage, fits perfectly in the recent diets. But more than that fact, coconut water has natural hydrating qualities, contains electrolytes, and has low calorie content. This isotonic beverage indeed can energize without causing blood sugar spikes brought by excess or added sugar from regular sports drink.
HEALTH BENEFITS
The humble coconut water is packed with loads of nutrition. Here is a list of some of its nutrients that can significantly and can positively affect our health.
- Amino acids – for muscle building and boosting the immune system
- Antioxidants – for protection of cells against free radicals
- Vitamins and minerals – for strengthening the immune system
- Potassium – for decreasing the risk of heart diseases
- Calcium – for strengthening of bones
- Magnesium – for the improvement of body’s digestion
- Iodine – for brain development
MARKET SEGMENTATION
These are how the coconut juice is presented and is performing in the global market:
1. By form:
- Liquid – this segment is projected to reach USD 4.50B by 2025 according to Hexa Research.
- Powder
2. By product type:
- Pure coconut water
- Mixed coconut water
3. By packaging:
- Plastic bottle – this segment builds the 20% of the whole coconut water product volume. Some consumers prefer this packaging since it is recyclable.
- Tetra Pack – this segment builds the 25% of the coconut water industry revenue. Because of the packaging’s raw materials, it becomes eco-friendly and extends the product’s shelf life.
4. By distribution channels:
- Offline channels – this composes the 80% revenue share of the industry in 2017. These channels such as the local grocery stores, supermarkets, and hypermarkets are still preferred by most consumers because of its geographical reach and accessibility.
- Online channels – this segment is keeping up with the offline channels because more and more younger consumers are utilizing these. The conveNience and immediacy these channels bring to consumers make the coconut water industry more active and more dynamic.
REGIONAL SEGMENTATION
Coconut water is distributed in almost all parts of the world. It has consumers in North and Latin America, Europe, Middle East, Africa, and especially in Asia where most producers come from. These are the top 3 consumer countries in coconut water:
- China – This country is the largest consumer of coconut water, taking the 62.48% of the global market share in 2015.
- USA – This country shares the 23.31% of the coconut water consumption.
- UK – This country consumes approximately 25-26 Million liters.
MARKET PROJECTIONS
According to Hexa Research, the coconut water industry is valued at USD 961.9M in 2017. It is projected that its CAGR will increase up to 25% in the span of 8 years (2017-2025).
In terms of production, as of 2011, the industry has already produced 1138.32M liters. In 2016, it is reported that the coconut water industry has produced 2310.08M liters. These figures are expected to increase and to strengthen as more and more consumers around the globe are searching for a healthier and more rejuvenating drink.
RECENT INDUSTRY STRATEGIES
To grow the coconut water industry, manufacturers make significant actions such as product innovation, mergers, and/or acquisitions. Here are some recent strategies in the coconut water industry:
- In 2013, ZICO was acquired by the beverage giant, Coca-Cola. ZICO was one of the key players in the coconut water industry.
- In 2017, Maverick Brands LLC, the parent company of Coco Libre was acquired by New Age Beverage Corporation for USD 35M.
- In 2018, another beverage main player, Tropicana, launched Coco Blends in North America.
With the direction the coconut water industry is taking plus its stunning growth rate, many market observers are confident to say that this industry is not going anywhere else soon. Let us expect that as this industry continues to boom, more people will be positively impacted because of the increasing generation of jobs and other means of livelihood. More than the economic aspect, more people will also benefit from the health benefits and the rejuvenating power of the coconut water.
Switch now to this healthy and energizing plant-based drink! Support the coconut water industry!