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The coconut alcohol market size is projected to increase by USD 170.78 million, at a CAGR of 4.86% between 2023 and 2028.
APAC stands as the primary producer and consumer in the market, fueled by a surge in demand for distinctive tropical flavors. Increased awareness of coconut alcohol benefits, coupled with the proliferation of food service chains offering coconut alcohol beverages, further propels market growth. Notably, the rising number of female alcohol consumers contributes to the region's expanding market. This analysis underscores APAC's dominance in catering to evolving consumer preferences and anticipates promising forecasts amidst emerging market trends. Becle SAB de CV company offers coconut alcohol such as 1800 Original Coconut tequila.
The market shows an accelerated CAGR during the forecast period.
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Increasing consumer preference for natural and plant-based alcoholic beverages is the key factor driving the market. The rise in vegan and vegetarian lifestyles has led to a growing demand for alcoholic beverages that do not contain animal-derived ingredients or by-products. Plant-based alcoholic beverages are often considered vegan-friendly, appealing to consumers who adhere to plant-based diets for ethical, environmental, or health reasons. Also, concerns about environmental sustainability and the impact of food and beverage production on the planet have prompted consumers to seek out eco-friendly and sustainable products.
Consequently, consumers actively seek plant-based alternatives to traditional spirits and liquors, thus, they are drawn to coconut alcohol. It offers a solution free from chemicals, additives and excessive processing. Additionally, the natural fermentation and distillation processes used in coconut alcohol manufacturing help retain the authentic flavors of coconuts, making it an appealing choice for health-conscious consumers. Thus, the market is expected to grow significantly during the forecast period.
New product launches is the primary trend shaping the market. The manufacturers are adopting innovative and distributive strategies to increase the market size of these products. Successful new product launches increase the competition among the vendors and are expected to accelerate the growth of the market. Additionally, new product launches increase the market share of players and offer them a competitive edge over other players in the market.
For instance, in June 2023, Watertown Whiskey, which is a US-based whiskey brand, announced the launch of its first coconut whiskey product. Also, in June 2023, Cotton and Reed, a rum distillery company in the US, announced the launch of a new gold rum which is made of coconut. Thus, the increasing product launches are anticipated to drive the growth of the market during the forecast period.
Difficulty in sourcing tender coconuts is a major challenge that affects market expansion. Coconuts are typically grown in tropical with specific climate requirements, such as high humidity and temperatures. As a result, coconut production is limited to certain countries such as Indonesia, the Philippines, India, Sri Lanka, Mexico, Brazil, and Vietnam, which can negatively affect the availability and supply of coconuts, leading to higher prices. The major vendors in the market used to source their coconuts from Brazil initially.
Furthermore, other factors affecting the sourcing are natural calamities and plant diseases. The number of plantations in the Caribbean has declined since the early nineties due to natural calamities and a disease called lethal yellowing. Therefore, sourcing tender coconut may remain a major challenge for the growth of the market during the forecast period.
The coconut wine?segment will account for the largest share of this segment.?Coconut wine is often perceived as a healthier alternative to other alcoholic beverages due to its natural ingredients and lower alcohol content compared to spirits such as vodka and whiskey. It is typically made from the sap of such palm trees, which is rich in vitamins, minerals, and antioxidants, making it appealing to health-conscious consumers. Further, coconut wine offers a distinct flavor profile with subtle hints of tropical fruits, appealing to consumers looking for new and novel taste experiences. Thus, the segment is expected to witness high growth in the market during the forecast period.
The market share growth by the offline segment will be significant during the forecast period. The offline distribution segment encompasses supermarkets, hypermarkets, discount stores, convenience stores, and individual retailers, offering a diverse selection of coconut alcohol brands. Rapid urbanization and evolving consumer healthier lifestyles contribute to the popularity of hypermarkets and supermarkets for coconut sap juice, where in-store promotions and price comparisons attract shoppers. Coconut is considered as solid food with rich vitamins and minerals and natural ingredients that give potential health benefits
The offline segment was valued at USD 414.85 million in 2018.
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Furthermore, market players focus on expanding their reach by partnering with major retail chains like Walmart, Costco, and Kroger. Consumer awareness and health and wellness of coconut with gluten-free and low-sugar alcohol drive the market. Further, convenience stores cater to time-constrained consumers with convenient locations, extended hours, and quick transactions for products such as coconut milk & cream coconut oil, and coconut chips. Independent retailers serve niche markets with daily product procurement. The widespread availability and convenience of hypermarkets, supermarkets, and other platforms are expected to drive growth in the off-trade segment of the market during the forecast period.
APAC is estimated to contribute 50% 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. China and India lead the market in the APAC region due to high consumption levels and increased spending on alcoholic beverages. However, challenges such as counterfeit products, limited awareness, and rural reach may impede growth. Coconut alcohol holds cultural significance in tropical regions like Southeast Asia and the Pacific Islands, associated with traditional rituals and celebrations. Rising disposable incomes and the introduction of global brands drive market growth. Increased awareness of low-alcohol beverages also contributes. Expansion plans by global brands in APAC further support market growth 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:
Brinley Gold Shipwreck, Campari Group, Charles Jacquin et Cie. Inc., CoCo Vodka, COTTON and REED, CREAMY CREATION, Diageo Plc, Don Q Rum, E. and J. Gallo Winery, Fishbowl Spirits, Heaven Hill Sales Co., HOUSE OF ELRICK, Marigot Bay, Molson Coors Beverage Co., NEITIV, Paradise Rum, Pernod Ricard SA, Real McCoy Spirits Corp., Suntory Holdings Ltd., and Watertown Whiskey
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 market research and growth report forecasts market growth analysis by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is driven by the versatility of coconut trees, offering flower buds and coconut fruit for production. With rising demand for natural and organic products, traditional alcoholic beverages like coconut water wine gain traction. Brands like Hunter Distilleries and Island Distillers capitalize on market opportunities in the health and wellness segment, emphasizing beneficial nutrients and low sugar content. Despite challenges like economic slowdown, consumption patterns in public places and pubs reflect changing demographics and social consumption habits, fostering the introduction of pub culture amid the urban population and evolving socio-cultural scenarios.
Additionally, coconut alcohol production taps into the rich resources of the palm tree family, often referred to as the tree of life. Derived from coconut toddy, this alcoholic drink undergoes fermentation aided by yeast. Despite challenges like viruses, the market thrives on sugars present in ingredients like black grape juice, catering to human consumption preferences and market drivers.
Market Scope |
|
Report Coverage |
Details |
Page number |
151 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.86% |
Market Growth 2024-2028 |
USD 170.78 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.9 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 50% |
Key countries |
US, China, Indonesia, Sri Lanka, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Anheuser Busch InBev SA NV, Bacardi Ltd., Becle SAB de CV, Brinley Gold Shipwreck, Campari Group, Charles Jacquin et Cie. Inc., CoCo Vodka, COTTON and REED, CREAMY CREATION, Diageo Plc, Don Q Rum, E. and J. Gallo Winery, Fishbowl Spirits, Heaven Hill Sales Co., HOUSE OF ELRICK, Marigot Bay, Molson Coors Beverage Co., NEITIV, Paradise Rum, Pernod Ricard SA, Real McCoy Spirits Corp., Suntory Holdings Ltd., and Watertown Whiskey |
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, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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