And Other Non-Traditional Coconut Products
“The Philippine’s coconut industry is a sleeping giant”. These were the words of Sec. William Dar from the Department of Agriculture posted by The Manila Times last October 2019. Beginning the martial law era or even before that, the Philippines has always been leading around the world when it comes to producing coconuts. The world market has changed a lot in the past decades but the country’s place when it comes to producing and exporting coconut has always remained near the top spot. In recent years, the Philippines has ranked second among the world’s top producers of coconut products, next to Indonesia. It is said that 25% of the country’s total agricultural land consists of coconut plantations and the government is pursuing to improve the country’s overall production in order to advance the economy through more exports.
With the changes in the demand of both local and global markets, the coconut industry around the world still thrived. Coconut water being the main driving factor to increase the sales of coconut producing companies, the world saw a new perspective in adapting healthier lifestyles resulting in patronizing more organic products. Now that the planet is still facing a threatening pandemic, people’s awareness and focus on a healthier lifestyle is top priority. This would greatly affect the consumer’s behavior and choices, thus, giving lots of positive impact on organic products around the globe. Coconut and all its by-products still remains a prime organic good and is predictably rising even after the pandemic.
In the local scene, desiccated coconut is said to have 8.6% per year of growth percentage from 2019 until 2023 based on studies conducted. Thanks to coconut water for pulling the whole coconut family into this. Non-traditional coconut products were once not-so-familiar commodities. But now, everyone is becoming more and more aware of their circulation in the market. From coconut water, coconut cream, virgin coconut oil, coconut milk, desiccated coconut or even coconut flour, all these non-traditional coconut products are now effectively penetrating the global market. This is hugely advantageous to coconut farmers and may even bring more job opportunities for Filipinos living in the rural regions.
For desiccated coconut, it has been a major income-generating export product for the country. Most consumers are coming from the United States, Canada, United Kingdom and Australia. When it comes to the local and international market, desiccated coconut’s main selling point relies on several important factors such as the type, grade, end user, channels of distribution and region. For the type, full fat and reduced fat are the two categories to consider. Consumers always have certain preferences for the fat content of a product and desiccated coconut is known for having high (healthy) fat content. When it comes to grade, it ranges from fine grade to medium grade depending on the choice of the end user. End users are mainly households and those in the food and beverage industry like restaurants, cafes, catering businesses and food manufacturers. On distribution channels, it could be direct or indirect which may be further divided into subcategories based on businesses and final consumers. The regions majorly considered for market share includes North America, Asia-Pacific, Europe, Latin America, Africa and the Middle East.
Indeed, there are so many factors to be considered in producing and purchasing a simple organic commodity such as the desiccated coconut. For players in the industry, the continuously increasing demand is a positive opportunity for more profit. For consumers around the world, may it be those from the food and beverage industry or a simple household end user of desiccated coconut, the future is guaranteed to conveniently supply more of the product. It will not be a matter of worry where to get one when you need one to elevate the taste of your baked goods, desserts, smoothies and other dishes. A desiccated coconut will always be available to satisfy our appetite for a nutty flavor!