Years ago, only those living in the tropics appreciate the refreshing wonders of the coconut water. Now, people in the west, where there is no single trace of coconut tree, are going loco over this coco drink! Many are considering this as a super drink because of its taste and health benefits. In turn, this super drink also became a super in revenue generation which positively impacted the whole industry.
GROWTH DRIVERS
The coconut water industry is gaining momentum because of these three factors.
1. Consumers’ Lifestyle Shift
Different diets are emerging because of consumers’ desire to find a healthier way of eating. The recent trend is plant-based diet. Consumers are finding organic and vegan alternative to the traditional food. Here the coconut water fits in. Consumers now cut on sugary drinks life soft drinks, artificial juices, and even sports drinks and switch to coconut water. More than being organic and plant-based, coconut water is also sweet like soft drinks and refreshing and energizing like sports drinks.
2. Celebrity Promotions
May it be a paid ad or not, photos with celebrities holding coconut water are pushing the industry to a positive direction. Celebrities are nowadays promoting coconut water drinking as part of their morning routine. Some incorporate chia seeds to the drink for more effective weight loss regimen. This celebrity lifestyle is caught by their fans and followers which help increase the coconut water consumption all over the world.
3. Government Support
Because of the high demand, coconut water is generating revenues that move economies of countries. This phenomenon is picked up by the government and lawmakers created policies that support the coconut industry. Farmers and manufacturers are incentivize to produce and manufacture by-products. Governments also created programs that assist farmers in better cultivating the coconut tree. This national support encouraged the farmers to focus on coconut farming, thus enhancing the coconut supply and the revenues.
COCONUT WATER MARKET SEGMENTATION
Here are some ways coconut water is presented in the market:
By product type: sweetened and unsweetened
By packaging: paper and paperboard, metal, plastic, palin, flavored
By variant: plain, flavored
By distribution channel: super/hypermarkets, convenience stores, specialty stores, online stores
REGIONAL SEGMENTATION
Asia Pacific is the leading region in consumption and production, China having the largest market share being in 62.44%. North America is the next largest region in consumption and production, having 23.31% market share. Market observers say that North America is one of the leading consumers because of the lifestyle switch of the population. The high records of obesity caused by too much intake of sugar made them find a healthier beverage choice. Other emerging markets for the coconut water are the UK, Germany, Italy, and Australia.
MARKET PROJECTIONS
By 2023, the coconut water is projected to have a CAGR of 25%. For the segments, the flavored variant will stay as the leading product variant. For the packaging, ¾ of the total consumer usage will still use the product in plastic and paperboard. Moreover, more than half of the market will continue to consume the sweetened product type and much of the market still prefer physical stores as the product’s distribution channel.
Perhaps the favorite coconut by-product of the consumers, the coconut water, is storming the international market. The attention it is getting from the ordinary consumers to A-list celebrities, is definitely a testament that the coconut water is something special and worth trying. Try Greenville Coconut Water now!