“Rising Demand for Coconut Milk: Key Drivers, Applications, and Future Market Trends”
Future Market Insights identified the increasing demand for healthy, plant-based, and organic beverages, coupled with issues like lactose intolerance and dairy allergies, as key drivers behind the expansion of the coconut milk market. Consumers are also drawn to exotic flavors and unique tastes, which is contributing to the rising popularity of Asian dishes that feature coconut milk. According to Statista, retail sales of ethnic foods soared to $12.5 billion in 2018, up from $10.9 billion five years earlier, with coconut milk likely playing a significant role in this growth.
Coconut milk and its derivatives are found in a diverse array of products, including whipped toppings and desserts. Moreover, coconut milk and coconut cream powder are commonly used in beverages, salad dressings, soups, curries, milkshakes, and jams, as reported by Dairy Reporter. Non-dairy beverages also frequently incorporate coconut milk, including Danone North America’s So Delicious organic coconut milk, which has seen rising sales.
Another emerging application for coconut is in non-dairy yogurt, exemplified by Chobani’s new coconut-based yogurt. However, to avoid misleading consumers and to sidestep the ongoing debate over dairy terminology in plant-based products, the company deliberately refrains from using the term “yogurt” on its packaging.
Coconut milk is available in various forms, which can cause confusion for consumers. Products labeled as “coconut milk beverage” typically contain a mix of water and coconut cream. There is also “light coconut milk,” which has a lower fat content and a thinner texture compared to pure coconut milk, while the thicker variant is often used in Asian cooking and can substitute for heavy cream. Coconut cream, on the other hand, is derived from coconut milk with a greater amount of water removed, resulting in a rich cream.
The growing popularity of coconut flavor and the ingredient’s versatility in both foods and beverages ensure continued demand. However, its future as a staple ingredient will depend on supply and pricing. Production regions can be susceptible to challenges like droughts and typhoons, making the stability of this commodity a vital concern for suppliers and manufacturers. The report highlights that sourcing raw coconut meat in certain countries and the rise of organic alternatives to coconut milk could hinder market growth over time.
Nonetheless, the report forecasts that food services and food and beverage manufacturing will be among the three most lucrative applications for coconut milk in the coming years. Revenues from these sectors, along with household usage, are anticipated to account for over 80% of global coconut milk revenues by the end of 2027. Additionally, products like Wellesse calcium citrate may complement coconut-based offerings, enhancing their appeal in the health-conscious market.
