This pearly white liquid extracted from mature coconuts called coconut milk is gaining momentum in the global market. Hundreds of thousands of metric tons worth millions of US dollars have been already consumed and are projected to be consumed by customers from all over the world. With the growth of coconut milk market is having, some market observers are considering the product to be a very good substitute to the animal-produced milk.
But, what made coconut milk have this market status? What made the consumers entertain this relatively new product? What are the current strategies of manufacturers with these new opportunities? Let us discover how coconut milk gained its spotlight in the global market.
CAUSES OF HIGH DEMAND
A product’s movement in the market is caused by many factors. No one can really point out a specific reason that a product is gaining popularity and having high revenues. While that is the case, we are going to attempt to list down some significant or noticeable reasons that the coconut milk is having good demand from global consumers.
1. Shift in consumers’ dietary patterns
Different kinds of diets are trending nowadays. Many people are having a radical change in lifestyle and choose to adopt vegan, pescetarian, paleo, keto diets, etc. This phenomenon affects consumers’ product choice. Because most trending diets prefer organic and plant-based products, consumers tend to choose plant-based milk as a substitute to the animal-produced milk. Hence, people are slowly turning their backs to milk produced by farm animals such as cow’s milk and goat’s milk; instead they are more likely to grab coconut milk from grocery shelves.
See also: Coconut Milk on Food Recipes We Never Expected
2. Increasing number of people with lactose intolerance
According to the American Journal of Clinical Nutrition, 75% of the world’s population is lactose intolerant. North America, the major consumer of coconut milk, has recorded a very high number of residents incapable of digesting lactose. This unfortunate digestive disorder made the consumers find an alternative to milk which has no lactose, thus came in the coconut milk. Because it is plant-based, coconut milk is free from lactose.
3. Coconut milk’s amazing health benefits
Coconut milk is a by-product of the “Miracle Tree” Coconut Tree. It is known that the coconut tree contains amazing nutrients that the body definitely benefits from. As a by-product of the tree, coconut milk inherits most of that wonderful nutrient values. This healthy content feat, plus its relatively new taste to Western consumers, made the coconut milk attractive to the global market.
HEALTH BENEFITS OF COCONUT MILK
The coconut milk may seem to be a not-so-special product, but it gives wonders to our health. Here are some of its positive contributions to our body:
- Lauric acid – This nutrient is absorbed by the body to be converted to energy.
- Saturated fats – Having ample amounts of fats can reduce cholesterol, can improve blood pressure, and can decrease the risk of having heart-related diseases.
- Vitamins and minerals – These nutrients strengthen our immune system which guards us from easily catching illnesses. Coconut milk also have additional healthy minerals such as manganese, phosphorus, and iron which is good for our blood.
MARKET SEGMENTATION
These are some of the coconut milk’s segmentation in the global market:
By type:
- Thick – This is the kind of coconut milk that is soluble and is more suspended. Thick coconut milk is often used in sauces in savory dishes and in desserts. This contains 20-22% fat.
- Thin – This coconut milk has thin consistency because it is less suspended. This is used in many Asian savory dishes and gives food a nutty flavor. This type of coconut milk contains 5-7% of fat.
By application:
- Food and beverage – Coconut milk is used in baking, confectionery, dairy products, and frozen desserts.
- Agriculture – Coconut milk and its leftovers are used for plant growth and/or for animal feeds.
See also: The Coconut Milk Cosmetics
By industry user:
- Household
- Food services
- Food and beverage manufacturers
According to Future Market Insights, the three above mentioned industries or users are the most profitable end-users of coconut milk.
By distribution channels:
- Super/hypermarkets – Despite the availability of technology, these physical stores are still the most utilized distribution channels according to most market reports. Reasons pointed are the store’s geographical accessibility and customer experience.
- Department stores
- Grocery and online retailers – This distribution channel is catching up with the most preferred purchasing mode of consumers. Its main edge is the door-to-door delivery option and cashless payment.
REGIONAL SEGMENTATION
According to market reports, these are the top three regions that are the heaviest consumers of the coconut milk:
- North America – This region is considered to be the heaviest consumer of coconut milk. The main consumer in this region is the USA mainly because of the increasing records of obesity and lactose intolerant. American consumers are switching to coconut milk because of their diet changes.
- Asia Pacific – This region has long been using coconut milk especially in savory dishes such as curries in India and ginataan in the Philippines. Now, Asia Pacific is the second leading consumer because more Asians are shifting to vegetarianism especially in India and in China.
- Latin America – This region heavily consume coconut milk mainly because of the fact that the majority of its population is lactose intolerant. It is reported that 60% of the Argentinian population are lactose intolerant.
MARKET PROJECTIONS
These are some of the figures Future Market Insights has reported regarding the financial performance of the coconut milk industry:
- In 2016, global coconut milk market had a revenue of USD 780.4M
- 430,000 MT global market sales by the end of 2017
- 25% of those sales solely came from North America
- In 2017, the revenue reached to USD 830M
- It is projected that the coconut milk industry will have 7.3% CAGR during 2017-2027.
- It is projected that by the end of 2027, the coconut market will reach total sales of more than 800,000 MT.
RECENT INDUSTRY STRATEGIES
Manufacturers have already seen the high demand for the coconut milk and the great opportunities this entails. Therefore, many beverage companies are riding the trend. Vita Coco has already launched its own version of the product packed with calcium and minerals. Even the coffee company, Starbucks, has also included coconut milk-based drinks in its menu. These are just some of the manufacturers’ and beverage companies’ moves to cater the market’s thirst for the coconut milk.
You can also join in the coconut milk global wave! Try Royce Food’s Coconut Milk.