Desiccated Coconut Market - Industry Analysis, Market Size, Share, Trends, Growth And Forecast 2021 - 2026
Desiccated Coconut Market Overview
The desiccated coconut market size is estimated to reach $7.1 billion by 2026 and is poised to grow at a CAGR of 5.5% over the forecast period of 2021-2026. Desiccated coconut refers to the meat of the coconut, which has been dried out, pared, and washed from all the coverings. Coconut meat has been in use for centuries and is called “Kalp vriksha,” meaning that the tree provides all the necessary things for human survival. The desiccated coconut can be sliced or cut as per the needs of the consumers. In confectionery items, the desiccated part is used for decoration, aroma, and more recently has been adopted due to its properties of dietary fiber. Since the coconut is dried out post-harvest, the desiccated part or the meat of the coconut is high in manganese/magnesium and contains 24% of the recommended daily value in the diet. The health benefits and rising inclination of consumers to adopt natural sugars with a low glycemic index are some of the factors driving the Desiccated Coconut Industry forward during the forecast period.
The report: “Desiccated Coconut Market Forecast (2021-2026)”, by Industry ARC covers an in-depth analysis of the following segments of the Desiccated Coconut Market.
- Europe’s Desiccated Coconut Market held a dominant revenue share in the year 2020. It is owing to the dependence of desiccated coconut in preparing various delicacies and multiple usages in the bakery, confectionery, and beverage industries. Moreover, Europe will continue to grow at a lucrative rate owing to the rising preference for adopting Asian delicacies and healthy sugars in the daily diet.
- The aligned health benefits offered using desiccated coconut will act as a driver for the market. However, dependence on some regions affecting the overall price will serve as a challenge for the market.
- Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Desiccated Coconut report.
Desiccated Coconut Market Share, By Geography, 2020 (%)
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Desiccated Coconut Market Segment Analysis- By Nature
The desiccated coconut markets based on nature can be further segmented into organic and conventional. Conventional desiccated coconuts held a dominant share in the year 2020. It was owing to the production region’s agricultural practices and the reduced labor cost rates, which play a significant role in deciding the price of the coconut meat. Moreover, on average, the conventional desiccated coconut costs $12, whereas the organic desiccated coconut costs $17 per 8 oz. Therefore, the following becomes a reason for choosing, moreover the end-users such as restaurants look for cheaper raw materials while also fulfilling the consumer needs.
The organic desiccated coconut segment is estimated to be the fastest-growing, with a CAGR of 5.7% over the forecast period of 2021-2026. It is owing to the rising awareness around consuming healthy produce and the rising concern for agricultural activities supporting the environment as a whole.
Desiccated Coconut Market Segment Analysis- By Fat Content
The desiccated coconut market based on fat content can be segmented into high fat and low fat. The low-fat segment held a dominant share in the year 2020. It is owing to the health benefits the said segment offers. For example, the fat content of the “high-fat” module is (65+/-5)%. In comparison, the fat content of low-fat ranged from 40-50%. High saturated fats lead to cardiovascular diseases, and one should be careful while consuming the “high-fat” variant.
Moreover, the low-fat segment is estimated to be the fastest-growing, with a CAGR of 5.9% over the forecast period of 2021-2026. It is owing to the rising prevalence of cardiovascular diseases owing to obesity and higher intake of LDL-rich food. As per WHO, 43% of the deaths below 70 are now linked to diabetes, a predominant cardiovascular disease. High saturated fats lead to cardiovascular diseases, and one should be careful while consuming the “high-fat” variant.
Desiccated Coconut Market Segment Analysis- By Geography
The Desiccated coconut market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Europe held the largest geographic share of 29% as compared to the other regions. It is owing to the high usage of desiccated coconut in food processing industries and in preparing confectionery, bakery, and other beverage items. Moreover, Europe has been a leading importer for several decades for the given commodity.
Desiccated Coconut Market Drivers
The health benefits associated with the use of desiccated coconut have driven the market.
Desiccated coconuts contain nutritional values, which mostly supplants the average daily need for a human. Moreover, an ounce of desiccated coconut contains 80% healthy saturated fat. Although there has been controversy surrounding the fat component, researchers have proved that medium-chain fatty acids are absorbed differently in the body while providing improved cognitive abilities and better lipid profiles. Additionally, the meat of the coconut offers selenium, a mineral that helps enhance immune function and thyroid function. Additionally, the desiccated coconut provides copper to the body and supplants up to 25% of the body's requirements. Furthermore, an ounce of desiccated coconut offers 5grams of dietary fiber, which provides the body 15% of the daily requirement.
An increase in the usage of desiccated coconuts as a sustainable replacement of sugars for the food processing industry is driving the demand.
The desiccated coconuts are offered in two primary forms, sweetened and unsweetened. The sweetened desiccated coconuts are actively used by the confectionery and bakeries of the different regions in place of natural sugars, which increase the glycemic index. At the same time, artificial sweeteners offer other long-term illnesses. For example, the glycemic value registered post consuming desiccated coconut was 35, while the glycemic value post consuming sugars obtained from sugar cane ranged from 58 to 82. The following aspect shows how desiccated coconuts can act as a healthier substitute for daily consumption.
Desiccated Coconut Market Challenges
A high price dependence on few production regions is a challenge desiccated coconut markets face.
A high correlation is found between a few regions’ productions and the overall global consumption of the desiccated coconut market. Desiccated coconuts are predominantly supplied from the south Asian countries of the Philippines and Indonesia (60% of the exports). The regions are known to be hampered by climatic conditions and various cyclonic storms. Hence, the major importer such as Europe faces challenges regarding the prices of desiccated coconuts, as with a supply crunch, the prices shoot up to 20%, and subsequently go down as well. The high dependence on regions has created various price turbulences for the market.
Desiccated Coconut Market Competitive Landscape
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Phytol Market. The top 10 Desiccated Coconut Companies include:
- Royce Food Corporation
- Celebes Coconut Corporation
- Ken taste Products Limited
- VV Industries
- Super Coco Company,
- Goldman International Pvt Ltd.
- Coloma Bio Organic
- Holland & Barrett
- Bake King
- Rev Foods
- In 2021, Genuine Coconut exhibited itself by launching three new flavors in the USA Market. The products were Coconut Chunks, Coconut Toppings, and Grated/Desiccated Coconut. All the launched products are free from artificial sweeteners and have a 60-day shelf life.
- In 2021, Natural Delights replaced their existing date rolls with Mini Majdools. The brand line would consist of desiccated coconuts, cacao and pecan, sweet and salty almond, and various other nuts.