In the food and beverage industry, the consumption of coconut flour has increased in recent times. The key trend in the industry is the growing demand for gluten-free products that have witnessed a significant presence in the market. Because of the constantly progressing shopping patterns coupled with the rising purchasing power of the consumers, there is a magnificent increase in the adoption of gluten-free food and beverage products. Rising consciousness related to diet is positively impacting the growth of the coconut flour market. The product is considered the most nutritious, high in fiber, and a good source of protein. These flours are the best alternative for a wheat substitute that is attracting the newer entrants to enter the marketplace. In 2016, Bob’s Red Mill’s, an employee-owned whole-grain foods marketed company, gluten-free, organic coconut flour gained popularity. This organic coconut flour became the first preference of the consumers since then.
As a consequence, small US-based startup companies are launching a variety of organic, gluten-free coconut flour products that has less carbohydrate, and it adds natural sweetness to it. Due to these factors, the global coconut flour market collectively generated revenue of $426 million in 2018. The opportunities will be incrementing at a CAGR of 6.5% during the forecast period 2019-2025.
According to the World Health Organization (WHO) report, the world’s population of over 60 years is expected to double by 22% from the current number reaching approximately 2 billion by the end of 2050. According to the World Bank Organization, the population aged between 15-60 years accumulates 65% of the total population currently. The growing geriatric population X and the millennial population are the most influenced by the gluten-free diet to maintain a healthy gut. An increasing prevalence towards the celiac diseases such as digestive problems, anemia, and joint pains are the most commonly occurring problems among these population, owing to this, there is an increase in the consumption of the gluten-free coconut flour. Therefore, there is an immense growth in the coconut flour market.
North America Leading the Global Coconut Flour Market
As of 2018, North America generated maximum revenue with a regional share of 33.4%. The significant increase in the region is due to rising export of coconut flour in North America. Moreover, Latin America, the United States, and Canada are experiencing higher demand as the consumers are shifting their major focus to high bakery fiber products coupled with high-consumption of gluten-free and grain-free products which are healthier. During the festive season such as Christmas and New Year Eve, the coconut flour market gains tremendous traction among the consumers. Increase in the demand for bakery products during the festive season and an increase in health-related issues have positively impacted the growth of the coconut flour product. Additionally, the inclination of the millennials towards Ketogenic and Paloma diet owing to its antibacterial and antifungal properties are the major contributor to this trend.
Philippine is the major exporter and producer of raw coconut worldwide. It exported a total of $1.5 million coconut products in 2017, the United States is the major importing country, as per the Food and Fertilizer Technology Center.
Coconut Flour Driving the Growth of the Cosmetic Industry
The coconut flours versatility ranges from food to cosmetics industry. In recent times, the demand for coconut flour is increasing in the cosmetic market as the consumers are inclining more towards the inclusion of natural and organic ingredients in the personal care and beauty products. Coconut flour provides various skin benefits such as it fights dryness, prevents skin cancer, anti-aging skin, and removes tanning. Owing to its benefits, the companies have started to launch products that have coconut flour. One such example is, SILAB, a manufacturer and seller of derma-cosmetics and cosmetics product, launched a product SENSORIALINE in May 2019. The product is sustainably sourced Sri Lankan coconut flour which contains multi-sensory action that favors the epidermal renewal, activates epidermal olfactory, and enhances tastes receptors. Such developments in the marketplace are influencing the growth of the coconut flour market.
Organized Retailers: A Major Growth Driver
A major factor that is driving the growth of the coconut flour market is the fastest-growing organized retailers. With the establishment of hypermarkets, supermarkets, and specialty stores, the organized retailers have grown worldwide. They are highly dependent on the ready-to-consume packaged food and beverage products, which are primarily sold by large retailers such as Walmart as vendors in the marketplace. However, it is easier for the new entrants to enter the coconut flour marketplace and sell their products via various distribution channels.
Latest Manufacturing Trend to Produce Coconut Flour
The food and beverage industry is continuously developing and improving the products made of coconut. With the emergence of the latest technology in the manufacturing process, the production of coconut flour has become easier. The major and the most common process used for manufacturing the product are the dry and wet processes.
· Dry Process: This process helps in producing high protein coconut flour that involves drying of coconut meat, oil extraction, and finally pulverization of the meat. The flour made through this process is widely used as a substitute for wheat flour.
· Wet Process: In this process, coconut meat is extracted along with the milk by drying and grinding the residue to produce coconut flour. The residue extracted through the wet process contains a lot of oil and are high in fiber.
The Major Front-Runners in the Global Coconut Flour Market
Some key players dominating the coconut flour market are Celebes Coconut Corporation, Groovy Food Company, TIANA Fair Trade Organic, Nutiva, Van Amerongen & Son, and Primex Group of Companies. Many companies are introducing new products to increase their market presence or entering into strategic mergers and acquisition, joint ventures, and partnerships. One such example is as follows:
· The Groovy Food Company Launches Gluten-Free Flour
In January 2016, Groovy Food Company launched a new organic coconut flour in re-sealable plastic pouches. Re-sealable pouches are convenient that makes the product storage easier at home. Groovy Food Company idea of using such packaging was to attract the customers by increasing the visibility on the shelf within the flour category in organized retailers along with an initiative to protect the environment.
Moreover, this flour is gluten-free, containing a low level of carbohydrates and Glycemic Index level. The company’s coconut flour is also high in protein and fiber. Growing gluten-free and grain-free diet are gaining traction as a trend among consumers. Owing to this, the coconut flour market is expected to witness significant growth during the forecast period.
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A. Coconut Based Food Market
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