Coconut Oil Market Outlook
The global coconut oil market is rising continually, witnessing a massive demand across the industries such as food & beverages, pharmaceutical, and health & wellness. Also, the usages of the oil in several household applications stimulate the demand in the market. Besides, the vast consumption in the manufacturing of personal care & cosmetic products escalates the market demand. High preference for coconut oil among consumers is a major factor bolstering the market demand exponentially.
The increase in market demand is predominantly led by the growing awareness of the health benefits of coconut oil market across the globe. The populaces in the APAC region have already been aware of the medicinal benefits of coconut oil in various pharmaceutical & beauty products. On the other hand, consumers in the US and Europe are increasingly relying on this oil for its rich source of medium-chain triglycerides (MCTs), useful in vegan gourmet, weight management products, and health supplements.
According to Market Research Future (MRFR), the Coconut Oil Market Size was valued at USD 7,481.30 Million by 2030, registering a CAGR of 6.4% during the forecast period 2020-2030. The important position that coconut oil holds in all major industries, including F&B, pharmaceuticals, cosmetics & personal care, and the biofuel industry, acts as a key tailwind for the growth of the market.
Conversely, factors such as price volatility and the demand-supply gap act as a considerable barrier to the growth of the market. Nevertheless, technological advances in yielding techniques would support the growth of the market over the review period, increasing coconut production. Besides, the substantial R&D investments would keep influencing the market growth in the year to come.
The impact of Covid-19 has debilitated most small and large-scale businesses alike. Due to the lockdown and the need for physical distancing, many businesses have been forced to shut down. The Coconut oil market was one of the industries that saw a decline in its profit and market size. However, coconut oil market is expected to recover its revenue in the coming years.
The pandemic situation seems to fade with time. Most businesses will be able to revive their profit soon. Hence, when that happens, the virgin coconut oil industry too will see tremendous growth in its market size. The awareness among the global population and availability of oil worldwide is leading to its growth despite the pandemic.
The report has been segmented into three major dynamics.
By Type: Virgin and Refined Coconut Oil.
By End-user: Industry, Food, and others.
By Regions: Americas, Europe, Asia Pacific, Middle East & Africa, and Rest-of-the-World.
The Asia Pacific dominates the global coconut oil market, perceiving the most significant production of coconut. The massive production of coconuts attributes to the ample arable land and suitable weather conditions required for coconut yield in the region. Also, substantial consumption of oil across industrial and household uses drives a large share of the market growth. The APAC coconut oil market is estimated to retain its dominance throughout the forecast period, accounting for the largest exporter of 100% natural, organic, and virgin coconut oil, and 60%-70% of value addition in coconut oil produced in the region.
North America stands second in the global Coconut oil market benefits, following the APAC market closely. Factors such as huge imports of the oil, new product developments by various manufacturers, and substantial consumption of coconut oil in the burgeoning cosmetics & personal care industry, drive the increase in the size of the market. Furthermore, the increased cultivation of coconuts in the regions of Colombia, alongside the rising consumption of oil in agrochemicals and cosmetics applications, impacts the growth of the market.
The coconut oil market in Europe is projected to demonstrate modest growth due to the rising usage of oil as cooking oil. Besides, the increasing consumption of oil in the production of bread spreads & other coconut milk products food items drives the growth of the market. Moreover, augmenting demand from the pharmaceuticals & personal care products industry fosters regional market growth. The European coconut oil market is estimated to witness significant growth in the future, heading with the increasing consumer awareness about coconut oil benefits.
Highly competitive, the coconut oil market appears to be well-established with the presence of several noteworthy players churning the competition in this market. To gain a larger competitive share, market players adopt strategies such as mergers & acquisitions, expansion, collaboration, and product/ extraction technology launches. Coconut oil producers continue expanding their product portfolio, enhancing sustainable sourcing & production, increasing brand awareness & widening distribution. Growth in terms of product innovations and oil-deriving techniques creates strong investment opportunities for market players.
Players active in the coconut oil market are Tantuco Enterprises Inc. (The Philippines), Naturoca (Indonesia), Phidco, Inc. (The Philippines), KPK Oils & Proteins India Pvcreatest. Ltd. (India), PT. Golden Oil (Indonesia), Greenville Agro Corporation (The Philippines), Samar Coco Products (The Philippines), Coconut Industry Investment Fund Oil Mills Group (The Philippines), Prima Industries Limited (India), SC Global Coco Products, Inc. (The Philippines), KERAFED (India), Primex Group of Companies (The Philippines), and PT. Harvard Cocopro (Indonesia), among others.
Industry/ Innovation/ Related News:
January 31, 2020 —- Marico Limited (India), producer of Parachute coconut oil and Saffola edible oil, announced an 11% increase in its net profit for the year 2019. FMCG major’s EBIDTA (earnings before interest, taxes, depreciation, and amortization) margin also expanded by 116 bps to 20.4%. Last year, the company expanded its portfolio with a range of coconut oil, including 100% organic virgin coconut oil, natural virgin coconut oil, and naturally infused variants of cold-pressed virgin coconut oil.
January 31, 2020 —- the Ateneo de Manila University and Spring Hill Neonatolody, Inc. published their recent study titled “The Potential of Coconut Oil and its Derivatives as Effective and Safe Antiviral Agents Against the Novel Coronavirus (CoV-2019)”. The study involves the use of coconut oil as a possible antiviral agent against COVID-19. The study proposes extensive research on the potential of coconut oil as a safe agent against COVID-19, given that it has a significant amount of lauric acid, which contains elements that have shown to have “potent antiviral properties.”
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