The Growing Industry of Coconut and Coconut Based Products
Coconut is one of the very popular plantations and is being cultivated in more than 90 countries across the world. India is one of the leading markets in the coconut industry and is producing 13 billion nuts yearly. Coconut is a versatile product and has multiple uses. Coconut is mostly cultivated in the coastal regions of the country. Although there is no doubt that establishing a coconut production is quite difficult but once it is done, it comes out to be a very beneficial business as coconut is harvested throughout the year. The production of world coconut sums up to almost 55 million tons yearly. Indonesia and the Philippines are some of the major producers of coconut fruits in the world. The industry of coconuts comprises more than 11 million farmers who grow coconut trees in 93 countries in an area the size of 12.196 million hectares.
Coconut Production and Market of Its By-Products
Almost 90% of the global area occupied by coconut trees is located in the Asia- Pacific region, it is geographically close to Australia. Majorly it is on smallholdings of almost 0.5 – 4.0 hectares of land. In the year 2014, there was an annual production of 69.836 billion coconuts grown with a global gross value of coconut products more than USD 50 billion. Out of coconuts, we can get 8 different food products namely:
Coconut flakes (desiccated coconut)
Coconut Sugar (made from the sap of the flower on the coconut palm)
There are nonfood uses of coconut also that includes soaps and cosmetics. Even pure coconut oil is used as a skin moisturizer, with no added chemicals or perfumes.
The Global Demand for Coconut Products
The market size of global coconut products was anticipated at USD 30.38 billion in the year 2018 and is expected to have a CAGR of 17.8 % in the forecasted year. Increasing awareness about the benefits related to the products coupled with growing demand from major developed countries like Europe and North America is anticipated to drive the demand.
Coconut oil holds the largest market share of 75.0% in terms of revenue in the year 2018. Coconut water has a high healthy saturated fat content which can boost fat burning and replenish energy levels in the body. Coconut water is expected to record the highest CAGR of 20.35 in the year 2025. The consumption is growing rapidly in Europe owing to the increasing awareness of its health benefits. The coconut water is rich in electrolytes and does not have sugar. This makes it a perfect alternative for traditional sports drinks. Coconut milk and cream are used in a lot of food preparations and bakery products. It is also witnessing increasing applications in cosmetics and personal care industries. Other derivatives just like coconut chips and cookies are used as healthy snacking items. Desiccated coconut has culinary uses in the form of food toppings or coatings. The cosmetics application segment holds the largest market share of approx. 65.0% in the year 2018. A lot of skin hand hair care products use coconut oil and milk as one of the base ingredients. These products have antioxidant properties that are beneficial in anti-aging creams and for direct application in homemade hair and skin packs. This is anticipated to fuel market growth over the forecasted period.
The project report by NPCS “Coconut and Coconut value-added Products, Coconut Oil, Desiccated Coconut (DC), Coconut Cream, Coconut Milk, Spray Dried Coconut Milk Powder, Coconut Shell Products, Shell Charcoal, Shell Powder, Virgin Coconut Oil (VCO), Coconut processing unit” deals with the industry of coconut and its products. It talks about all the important aspects that are very helpful for people related to the industry.