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The virgin coconut oil market size is projected to increase by USD 1,249.04 million, at a Compound annual growth rate (CAGR) of 11.14% between 2023 and 2028.
The APAC region, a leading global producer of virgin coconut oil, witnesses substantial growth in markets driven by the Philippines and Indonesia. Market players, grappling with increasing demand, predominantly export to the US, the UK, Canada, Europe, and South America. Initiatives, such as India's Coconut Development Board support, aim to enhance production capabilities. India is a major global coconut supplier. Health concerns are fueling the demand for healthier oils, with domestic brands offering virgin coconut oil. Increasing disposable income and organized retail outlets further drive the APAC market.
The market shows an Accelerated CAGR during the forecast period.
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The increasing prominence of private-label brands is the key factor driving market growth. Private-label processed virgin coconut oil is becoming a key focus area for retailers globally. Various retailers are selling different types of virgin coconut oil under their private-label brands to increase their profitability, which is contributing to the growth of the market. Globally, major retailers are introducing their brands of oil, such as virgin coconut oil, and thus capitalizing on the growing demand among consumers. In the last decade, the private-label product segment grew in terms of scope and size.
Moreover, private-label products are priced lower than branded products. Hence, price-sensitive consumers are more likely to purchase products such as virgin coconut oil. Supermarket chains have started allocating more shelf space to their private-label offerings and various in-house marketing and promotional activities. The demand for private-label brands is expected to increase during the forecast period, which, in turn, is expected to aid the growth of the market during the forecast period.
Increasing value-added products from virgin coconut oil is the primary trend shaping market growth. The market players are coming up with new value-added products. Such products will increase consumer interest in the market and will also help the farmers to gather more returns on their products. Only around 8%-10% of value addition in coconut oil is happening in India, while it is about 60%-70% in the Philippines.
Moreover, aligned with market trends and analysis, the Central Plantation Crops Research Institute of the Indian Council of Agricultural Research has developed a technology to make capsules of virgin coconut oil. The lauric acid present is used by the body to make the fatty acid derivative monolaurin, which has disease-fighting properties. Thus, the rising number of value-added products offered by market players is expected to drive market growth during the forecast period.
Complexity in sourcing of tender coconuts is a challenge that affects market growth. The players in the market sourced their coconuts from Brazil. However, due to the increase in demand, the supply from Brazil was not able to meet the demand. Consequently, they have shifted to Asia to source coconuts from countries such as the Philippines, Indonesia, and India, which are some of the largest coconut producers in the world. Most of the coconut trees in the Asian region were planted during the late 1950s. The productive period of a coconut tree is between 10 and 30 years. 90% of the world's coconut demand is met by APAC, and the aging of coconut trees is posing a serious challenge to the market.
Furthermore, the Caribbean's coconut farms have reduced by roughly 17% since 1994 as a result of fatal yellowing and other natural disasters. Indonesia, another major producer has not yet undertaken any program to replace the aging coconut trees as the government is focused on expanding rice, corn, and soybean production. Therefore, the sourcing of tender coconuts is a major issue that may negatively impact market growth during the forecast period.
in the offline segment, convenience and grocery stores are significant channels of distribution. Rising urbanization and changing lifestyles have resulted in the prevalence of convenience and grocery stores worldwide. Furthermore, factors like discounts and attractive shelf displays contribute to unique shopping experiences for consumers and encourage them to purchase virgin coconut oil in higher quantities from supermarkets and hypermarkets. Additionally, many consumers prefer specialty retailers when buying food products, including coconut oil, which in turn will drive the growth of the offline distribution channel segment in the market during the forecast period.
The market share growth by the organic segment will be significant during the forecast period. With the increasing consumer preference for natural and organic products, the demand for organic oil has been on the rise. One of the key drivers for the growth of the organic segment in the market is the rising awareness among consumers about the harmful effects of chemical-based products.
The organic segment was valued at USD 793.16 million in 2018.
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Additionally, several companies have recognized the potential of the organic segment in the global market and have introduced organic product lines. For example, Nutiva, a leading organic food company, offers organic virgin coconut oil that is cold-pressed and unrefined. Their product is USDA-certified organic, ensuring that it meets stringent organic standards. Furthermore, the increasing demand among consumers across the world has encouraged an increasing number of vendors to offer virgin coconut oil. Hence, these factors will significantly drive the growth of this segment during the forecast period.
APAC is estimated to contribute 36% to the growth of the global market during the forecast period
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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. APAC stands as a major global producer with the Philippines and Indonesia leading market growth. Escalating demand, particularly from the US, the UK, Canada, Europe, and South America, has prompted market players to enhance production capabilities. Notably, India, a key coconut supplier, saw a 41% surge in coconut exports to USD 393 million in 2021-2022. This robust export growth is driving increased production needs for various coconut-based products. Rising health concerns have also spurred demand for healthier alternatives like virgin coconut oil, with domestic brands in the region actively participating in market growth. Additionally, the increasing disposable income of consumers and the rising number of organized retailing outlets that offer oil are the major drivers that are estimated to impact market growth in APAC during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 10 market companies, including:
Adret Retail Pvt. Ltd., Barleans Organic Oils LLC, C Coconut Water, Greenville Agro Corp., Harin Bio Tech International Pvt Ltd., Healthy Traditions Inc., Kinsfolk Agro Industries Pvt Ltd., MAHAVIR COCONUT INDUSTRIES, Marico Ltd., Millennium Specialty Coco Prodcuts Inc., Naturesvelvet, Nutiva Inc., Orgrain India Pvt. Ltd., SC Global Coco Products Inc, Sun Bio Naturals Pvt Ltd., Tata Consumer Products Ltd., The Hain Celestial Group Inc., Vama Oil Pvt Ltd., Dr. Bronners Magic Soaps, and iTi Tropicals
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The global virgin coconut oil market is influenced by evolving consumer preferences and societal patterns, driven by increasing health awareness. The demand for functional foods and beverages has propelled growth in the coconut oil food sector, especially among consumers considering ethical considerations and adopting vegan and plant-based diets. The health benefits of medium-chain triglycerides (MCTs) found in virgin coconut oil further enhance its popularity. Companies are responding to consumer preferences by offering products in environmentally friendly packaging, with a shift towards the plastic bottles segment. Moreover, the market sees a rise in demand for organic virgin coconut oil, driven by concerns over synthetic pesticides, diverging from the conventional virgin coconut oil segment.
The market research report forecasts market research and growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Virgin Coconut Oil Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.14% |
Market Growth 2024-2028 |
USD 1,249.04 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.63 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 36% |
Key countries |
US, Canada, India, The Philippines, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adret Retail Pvt. Ltd., Apex and Coco and Solar Energy Ltd, Archer Daniels Midland Co., Barleans Organic Oils LLC, C Coconut Water, Greenville Agro Corp., Harin Bio Tech International Pvt Ltd., Healthy Traditions Inc., Kinsfolk Agro Industries Pvt Ltd., MAHAVIR COCONUT INDUSTRIES, Marico Ltd., Millennium Specialty Coco Prodcuts Inc., Naturesvelvet, Nutiva Inc., Orgrain India Pvt. Ltd., SC Global Coco Products Inc, Sun Bio Naturals Pvt Ltd., Tata Consumer Products Ltd., The Hain Celestial Group Inc., Vama Oil Pvt Ltd., Dr. Bronners Magic Soaps, and iTi Tropicals |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
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