The coconut milk market is predicted to grow at an annual compound growth rate of 17.1 per cent to reach $2.9bn by 2027. It was valued at $1.1bn in 2019.
According to recent Valuates Reports, the rise of veganism coupled with an increase in the urban population will drive the growing global demand for coconut milk. Coconut milk can be found in a wide range of processed foods, including cookies, cakes, pies, soups, milkshakes, and ice cream. Copra, coconut chips, coconut squash, and coconut vinegar are all used in the food and beverage industries around the world. The Asia-Pacific region holds the highest market share of 47.2 per cent in 2019. Coconut milk and cream are key producers and exporters in Asia, Valuates Reports said. Opportunities in the coconut milk business are likely to arise as Asian cuisine becomes more popular worldwide, it added.
According to Valuates Reports, the coconut milk market is predicted to grow at an annual compound growth rate of 17.1 per cent to reach $2.9bn by 2027. It was valued at $1.1bn in 2019. The report said global demand for coconut milk has been aided by the growth of natural food products and customer preference for a vegan diet.
However, due to the difficulty of scaling up coconut tree production, the report said that production was not projected to grow much in the foreseeable future. Result: producers will have to rely on creative solutions to make the most of the present supply and profit from the spike in demand. Ultimately, the coconut milk market is expected to be adversely affected.
Studies have shown that coconut milk aids in the improvement of the human immune system and the prevention of serious infections. Coconut milk contains lauric acid, which is easily absorbed by the body and used for energy.
Based on the packaging type, Tetra Pak cartons retained the highest share of the market in 2019, accounting for 62.6 per cent. This type of packaging extends the shelf-life of the items and reduces the loss of aroma, the report said. It keeps coconut goods clean and free of pollutants, retaining freshness and quality for a longer shelf-life, it added. As a result, goods manufacturers and suppliers are increasingly using this packaging option, Valuates Reports concluded.
When it comes to categories, the Conventional segment held the highest share of the coconut milk market in 2019, at 61.1 per cent. The report found conventional coconut milk to be significantly less expensive than organic coconut milk, and it is one of the key growth drivers in the market.
Coconut milk is becoming more popular in the food and beverage service industry because it can be stored and utilized for a long time, lowering operational expenses, the report said. Furthermore, because they take less time to produce and lower customer wait times, fast food chains and quick-service restaurants have begun to use them as fresh ingredient substitutes.
Sri Lanka, Thailand, and the Philippines are the top exporters of coconut milk and cream. India is the largest user of coconut and coconut products in Asia-Pacific, followed by Indonesia and the Philippines.