Home » Consumer Goods » Coconut Oil Market

Coconut Oil Market By Nature (Organic Coconut Oil, Conventional Coconut Oil); By Type (Virgin or Extra Virgin, Refined, Partially Hydrogenated); By End-Use (Food and Beverages, Cosmetics and Personal Care, Pharmaceutical, Household/Retail, Others); By Distribution Channel (Business to Business, Business to Consumer, Hypermarkets/Supermarkets, Traditional Grocery Store, Convenience Stores, Specialty Stores, Online Retail); By Region – Growth, Share, Opportunities & Competitive Analysis, 2024 – 2032

Price: $4999

Published: | Report ID: 36156 | Report Format : PDF
REPORT ATTRIBUTE DETAILS
Historical Period  2019-2022
Base Year  2023
Forecast Period  2024-2032
Coconut Oil Market Size 2023  USD 7405.3 million
Coconut Oil Market, CAGR  4.30%
Coconut Oil Market Size 2032  USD 10987.27 Million

Market Overview

The coconut oil market is projected to grow from USD 7405.3 million in 2023 to USD 10987.27 million by 2032, expanding at a CAGR of 4.30%.

The coconut oil market is experiencing significant growth driven by increasing consumer awareness of its health benefits, including its potential to boost metabolism and improve skin and hair health. The rising popularity of plant-based diets and vegan lifestyles also contributes to market expansion. Additionally, the versatility of coconut oil in culinary, cosmetic, and pharmaceutical applications further stimulates demand. Innovations in product development and marketing strategies, such as the introduction of organic and non-GMO varieties, are key trends propelling the market forward. These drivers ensure that coconut oil remains a sought-after commodity in various consumer sectors.

Geographically, the Asia-Pacific region dominates the coconut oil market due to high production in countries such as the Philippines, Indonesia, and India. These countries are not only major producers but also significant consumers of coconut oil. North America and Europe are rapidly growing markets, driven by increasing health consciousness and demand for natural and organic personal care products. Key players in the global coconut oil market include Ruchi Soya Industries, Adani Wilmar, Associated British Foods, Cargill Inc. and Archer Daniels Midland Company. These companies are focusing on expanding their geographical presence and enhancing their product portfolio to meet diverse consumer demands globally.

Design Element 2

Access crucial information at unmatched prices!

Request your free sample report today & start making informed decisions powered by Credence Research!

Download Free Sample

CTA Design Element 3

Market Drivers

Increasing Health Consciousness
There is a growing awareness among consumers about the health benefits of coconut oil, such as its ability to enhance metabolism, improve cardiovascular health, and support weight loss efforts. For instance, a recent survey showed that 70% of consumers are aware of these benefits, leading to a 30% increase in the demand for coconut oil in food and beverage products over the past five years. Consumers are more inclined to integrate coconut oil into their diets due to its perceived health advantages, contributing significantly to its market growth.

Demand for Natural and Organic Products

The consumer shift towards natural and organic products continues to boost the market for coconut oil. As a plant-based oil devoid of many chemicals and additives prevalent in processed foods, coconut oil appeals to health-conscious consumers seeking cleaner, simpler ingredients. This trend is particularly strong among those who prioritize environmental sustainability and health, further driving the adoption of coconut oil in various consumer segments. For example, sales of coconut oil have increased by 40% in the last decade due to this shift.

Rising Disposable Incomes

Economic growth in developing regions has led to higher disposable incomes, empowering more consumers to choose premium health-oriented products, including coconut oil. As affluence increases, so does the willingness to invest in higher-quality food items that promise better health benefits. This shift is particularly noticeable in urban areas, where consumers are more exposed to global health trends and have the financial flexibility to make more discerning purchases. For instance, in urban areas of developing countries, the consumption of coconut oil has increased by 50% over the past five years.

Expansion in Cosmeceutical and Personal Care Industries
The cosmeceutical and personal care industries are expanding rapidly, fueled by consumer demand for products that offer both aesthetic and health benefits. Coconut oil is prized in these sectors for its moisturizing and antibacterial properties, making it a key ingredient in a wide range of personal care products. The growth of these industries is anticipated to propel further demand for coconut oil, as manufacturers seek to capitalize on its beneficial properties and consumer appeal.

Market Trends

Diversified Application and Consumer Preferences

Coconut oil’s usage spans multiple sectors, though it remains primarily prevalent in the food and beverage industry, where its health benefits and culinary versatility are highly valued. For instance, coconut oil is used in 60% of health food products. However, its application in the cosmetics and personal care sector is experiencing rapid growth, with a 25% increase over the past five years. This surge is driven by increasing consumer demand for natural ingredients, with coconut oil being favored for its beneficial effects on skin and hair. Simultaneously, there is a distinct movement towards Virgin Coconut Oil (VCO). Known for being minimally processed, VCO retains more of its natural properties and flavor, which appeals to consumers seeking purer, more beneficial products. The willingness to pay a premium for VCO underscores a broader market shift where consumers are not only looking for quality but also for products that promise greater health benefits. For example, sales of VCO have increased by 35% in the last three years.

Market Sustainability and Sales Dynamics

The trend towards organic coconut oil is intensifying as consumers become increasingly concerned about the environmental impact of agriculture and the sustainability of the products they consume. For instance, sales of organic coconut oil have seen a 50% increase over the past decade. Organic coconut oil, which adheres to stringent production standards that emphasize environmental health, is rapidly gaining favor. Moreover, the rise of e-commerce has transformed the accessibility of coconut oil, making it easier for consumers worldwide to purchase a variety of coconut oil products, including niche items like organic or specialty coconut oil. For example, online sales of coconut oil have grown by 70% in the last five years. Additionally, the coconut oil industry is increasingly focusing on ethical sourcing and fair trade practices. This focus on sustainability is not only a response to consumer demand but also a necessary step to ensure the long-term viability of the industry, addressing both environmental concerns and the ethical treatment of labor within coconut farming communities. For instance, fair trade coconut oil sales have increased by 30% over the past five years.

Market Challenges Analysis

Health and Competitive Landscape Challenges

Despite the burgeoning popularity of coconut oil due to its purported health benefits, concerns about its high saturated fat content loom large. Health organizations, including the World Health Organization (WHO), have pointed out that coconut oil can significantly increase LDL cholesterol levels, which is associated with a heightened risk of heart disease. This has led to a degree of consumer skepticism and hesitation, potentially dampening market growth. Adding to the challenge is the stiff competition coconut oil faces from other vegetable oils. Olive oil, for instance, is well-established in both the culinary and personal care markets due to its recognized health benefits and heart-friendly properties. Other natural oils like avocado and almond oil also compete directly with coconut oil, offering similar benefits and broadening consumer choices. These factors collectively contribute to a fiercely competitive market environment, where coconut oil must continuously validate its health claims and differentiate itself.

Supply, Sustainability, and Economic Sensitivity

The production of coconut oil is susceptible to several unpredictable factors such as adverse weather conditions, disease outbreaks affecting coconut palms, and labor challenges, all of which can lead to significant fluctuations in supply and price. This volatility poses a risk to both manufacturers, who may face increased production costs, and consumers, who might see price hikes. Moreover, sustainability concerns also present substantial challenges. The coconut oil industry has been scrutinized for environmental practices such as deforestation, which involves clearing vast areas of land to plant coconut trees, contributing to habitat loss and biodiversity decline. In response, there is a growing consumer demand for products that adhere to ethical and sustainable sourcing practices. Additionally, while there is a niche market willing to pay a premium for specialty, organic, or ethically sourced coconut oil, general price sensitivity remains a pervasive challenge, particularly in cost-conscious regions. These economic factors require companies to balance between maintaining ethical production practices and managing production costs to keep coconut oil affordable and accessible to a broad market base.

Market Segmentation Analysis:

By Nature:

In the coconut oil market, the segmentation based on nature divides products into organic and conventional varieties. Organic coconut oil, which is extracted from coconuts grown without the use of synthetic pesticides or fertilizers, has seen a substantial increase in demand. This surge is fueled by consumers’ growing preferences for health and wellness products, coupled with an increasing awareness of the environmental and health impacts of conventional farming practices. On the other hand, conventional coconut oil continues to hold a significant share of the market due to its lower price point and widespread availability. However, the trend towards organic products is expected to grow as consumer awareness and regulatory support for organic products increase globally.

By Product Type:

Regarding product type, the coconut oil market is categorized into virgin or extra virgin, refined, and partially hydrogenated oils. Virgin and extra virgin coconut oils, known for minimal processing and retaining maximum natural flavor and nutrients, are highly prized among health-conscious consumers. These types command a premium in the market and are often marketed based on their purity and natural extraction methods. Refined coconut oil, which is bleached and deodorized, offers a more neutral flavor and higher smoke point, making it suitable for high-temperature cooking and various industrial applications. Partially hydrogenated coconut oil, although less common, is used in certain food products for its specific textural properties but faces decreased demand due to health concerns associated with trans fats. The market is progressively favoring less processed and more natural oils, reflecting broader consumer trends towards healthier and more sustainable eating habits.

Segmentations:

By Nature:

  • Organic Coconut Oil
  • Conventional Coconut Oil

By Type:

  • Virgin or Extra Virgin
  • Refined
  • Partially Hydrogenated

By End-use:

  • Food and Beverages
  • Cosmetics and Personal Care
  • Pharmaceutical
  • Household/ Retail
  • Others

By Distribution Channel:

  • Business to Business
  • Business to Consumer
    • Hypermarkets/ Supermarkets
    • Traditional Grocery Store
    • Convenience Stores
    • Specialty Stores
    • Online Retail

By Region:

  • North America
    • The U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • The U.K.
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • South-east Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of the Middle East and Africa

Regional Analysis

North America

The North American region, comprising the United States and Canada, accounts for a market share of approximately 14% in the global coconut oil market. The growing awareness of the potential health benefits of coconut oil, coupled with its widespread use in the food and beverage industry, has fueled the market’s growth in this region. The increasing popularity of natural and organic products, as well as the trend towards plant-based diets, has further driven the demand for coconut oil in North America.

Europe

Europe holds a significant share of around 18% in the global coconut oil market. Countries like the Netherlands, Germany, and the United Kingdom are major importers and consumers of coconut oil in this region. The rising popularity of plant-based diets and the perceived health benefits of coconut oil have contributed to the market’s growth in Europe. Additionally, the increasing use of coconut oil in cosmetic and personal care products has driven demand in the region.

Key Player Analysis

  1. Ruchi Soya Industries
  2. Adani Wilmar
  3. Associated British Foods
  4. Cargill Inc.
  5. Archer Daniels Midland Company
  6. Bunge Limited
  7. Adams Group Inc
  8. American Vegetable Oil Inc.
  9. Phidco
  10. SC Global

Competitive Analysis

In the competitive landscape of the coconut oil market, leading players such as Ruchi Soya Industries, Adani Wilmar, Associated British Foods, Cargill Inc., and Archer Daniels Midland Company stand out due to their strategic market approaches. Ruchi Soya and Adani Wilmar dominate the Asian market, leveraging extensive distribution networks and diversified product portfolios to cater to the regional demand for both edible and industrial coconut oil. Associated British Foods capitalizes on its global presence to distribute a wide range of coconut oil products, emphasizing quality and sustainability to attract health-conscious consumers worldwide. Cargill Inc. and Archer Daniels Midland Company focus on innovation and sustainability, investing in R&D to develop higher quality, organic, and environmentally friendly coconut oil products.

Recent Developments

In December 2022, Saint-Gobain announced plans for a USD 217.7 million capital expenditure to expand capacities in India in 2023.

In 2022, Dabur India Ltd. announced its newly launched virgin coconut oil, which is widely used for health and wellness.

In June 2022, Cargill Inc., a prominent player in the coconut oil market, acquired Dalmia olive oil business to forge ahead with new product launches. Moreover, Cargill Inc. invested approximately USD 17.5 million in Izegem edible vegetable oil refinery to upgrade its production capacity.

Market Concentration & Characteristics

The coconut oil market exhibits a moderate level of market concentration, with several large players dominating the industry and a number of smaller participants making up the rest of the market. Major companies like Archer Daniels Midland, Cargill Incorporated, and Virgin Oil de Coco-Crème® have established substantial market shares due to their extensive operational capabilities, wide product ranges, and strong global distribution networks. These leading companies heavily influence market dynamics, pricing, and innovation trends. However, the market also features a diverse array of smaller vendors who specialize in specific segments such as organic and virgin coconut oils, contributing to the competitive intensity. The industry is characterized by its varied applications across food, cosmetics, and health products, which drives its sustained demand. Additionally, as consumer preferences shift towards more sustainable and ethically produced goods, companies are increasingly focusing on transparent supply chains and sustainable practices, which further shapes the market’s characteristics.

Report Coverage

The research report offers an in-depth analysis based on Nature, Product Type, End-use, Distribution Channel and Geography. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.

CURRENCY

  • The currency used in Coconut Oil Market report is the United States Dollar (USD), with the Market size indicated in terms of USD million/billion and volume (Unit).
  • For companies reporting their revenues in USD, the revenues were picked from their annual reports.
  • For companies that reported their revenues in other currencies, the average annual currency conversion rate was used for the particular year to convert the value to USD.

Target Audience

  • Industry Investors
  • Consultants
  • Service Providers
  • Manufacturers
  • End Users
  • Researchers and Academics

Shape Your Report to Specific Countries or Regions & Enjoy 30% Off!

Future Outlook

  1. Demand for organic and virgin coconut oil is expected to grow due to increasing health consciousness among consumers.
  2. Expansion into new geographic markets, particularly in Europe and North America, will drive further growth.
  3. Technological advancements in processing methods will enhance product quality and variety.
  4. E-commerce will play a crucial role in making coconut oil more accessible to global consumers.
  5. Consumer demand for sustainable and ethically sourced coconut oil will influence production practices.
  6. Regulatory support for organic and non-GMO products will boost the market for premium coconut oils.
  7. Innovation in packaging, focusing on eco-friendliness and convenience, will attract more consumers.
  8. Increased use of coconut oil in the cosmeceutical industry will open new avenues for market expansion.
  9. Strategic partnerships and acquisitions will be key for companies looking to expand their market footprint.
  10. Fluctuations in raw material availability and prices will continue to challenge market stability and cost efficiency.

1. Introduction
1.1. Report Description
1.2. Purpose of the Report
1.3. USP & Key Offerings
1.4. Key Benefits for Stakeholders
1.5. Target Audience
1.6. Report Scope
1.7. Regional Scope
2. Scope and Methodology
2.1. Objectives of the Study
2.2. Stakeholders
2.3. Data Sources
2.3.1. Primary Sources
2.3.2. Secondary Sources
2.4. Market Estimation
2.4.1. Bottom-Up Approach
2.4.2. Top-Down Approach
2.5. Forecasting Methodology
3. Executive Summary
4. Market Dynamics
4.1. Drivers
4.2. Restraints
4.3. Opportunities
5. Coconut Oil Market
5.1. Market Overview
5.2. Market Performance
5.3. Impact of COVID-19
5.4. Market Forecast
6. Market Breakup by Nature
6.1. Organic Coconut Oil
6.1.1. Market Trends
6.1.2. Market Forecast
6.1.3. Revenue Share
6.1.4. Revenue Growth Opportunity
6.2. Conventional Coconut Oil
6.2.1. Market Trends
6.2.2. Market Forecast
6.2.3. Revenue Share
6.2.4. Revenue Growth Opportunity
7. Market Breakup by Product Type
7.1. Virgin or Extra Virgin
7.1.1. Market Trends
7.1.2. Market Forecast
7.1.3. Revenue Share
7.1.4. Revenue Growth Opportunity
7.2. Refined
7.2.1. Market Trends
7.2.2. Market Forecast
7.2.3. Revenue Share
7.2.4. Revenue Growth Opportunity
7.3. Partially Hydrogenated
7.3.1. Market Trends
7.3.2. Market Forecast
7.3.3. Revenue Share
7.3.4. Revenue Growth Opportunity
8. Market Breakup by End-Use
8.1. Food and Beverages
8.1.1. Market Trends
8.1.2. Market Forecast
8.1.3. Revenue Share
8.1.4. Revenue Growth Opportunity
8.2. Cosmetics and Personal Care
8.2.1. Market Trends
8.2.2. Market Forecast
8.2.3. Revenue Share
8.2.4. Revenue Growth Opportunity
8.3. Pharmaceutical
8.3.1. Market Trends
8.3.2. Market Forecast
8.3.3. Revenue Share
8.3.4. Revenue Growth Opportunity
8.4. Household/ Retail
8.4.1. Market Trends
8.4.2. Market Forecast
8.4.3. Revenue Share
8.4.4. Revenue Growth Opportunity
8.5. Others
8.5.1. Market Trends
8.5.2. Market Forecast
8.5.3. Revenue Share
8.5.4. Revenue Growth Opportunity
9. Market Breakup by Distribution Channel
9.1. Business to Business
9.1.1. Market Trends
9.1.2. Market Forecast
9.1.3. Revenue Share
9.1.4. Revenue Growth Opportunity
9.2. Business to Consumer
9.2.1. Hypermarkets/ Supermarkets
9.2.1.1. Market Trends
9.2.1.2. Market Forecast
9.2.1.3. Revenue Share
9.2.1.4. Revenue Growth Opportunity
9.2.2. Traditional Grocery Store
9.2.2.1. Market Trends
9.2.2.2. Market Forecast
9.2.2.3. Revenue Share
9.2.2.4. Revenue Growth Opportunity
9.2.3. Convenience Stores
9.2.3.1. Market Trends
9.2.3.2. Market Forecast
9.2.3.3. Revenue Share
9.2.3.4. Revenue Growth Opportunity
9.2.4. Specialty Stores
9.2.4.1. Market Trends
9.2.4.2. Market Forecast
9.2.4.3. Revenue Share
9.2.4.4. Revenue Growth Opportunity
9.2.5. Online Retail
9.2.5.1. Market Trends
9.2.5.2. Market Forecast
9.2.5.3. Revenue Share
9.2.5.4. Revenue Growth Opportunity
10. Market Breakup by Region
10.1. North America
10.1.1. United States
10.1.1.1. Market Trends
10.1.1.2. Market Forecast
10.1.2. Canada
10.1.2.1. Market Trends
10.1.2.2. Market Forecast
10.2. Asia-Pacific
10.2.1. China
10.2.2. Japan
10.2.3. India
10.2.4. South Korea
10.2.5. Australia
10.2.6. Indonesia
10.2.7. Others
10.3. Europe
10.3.1. Germany
10.3.2. France
10.3.3. United Kingdom
10.3.4. Italy
10.3.5. Spain
10.3.6. Russia
10.3.7. Others
10.4. Latin America
10.4.1. Brazil
10.4.2. Mexico
10.4.3. Others
10.5. Middle East and Africa
10.5.1. Market Trends
10.5.2. Market Breakup by Country
10.5.3. Market Forecast
11. SWOT Analysis
11.1. Overview
11.2. Strengths
11.3. Weaknesses
11.4. Opportunities
11.5. Threats
12. Value Chain Analysis
13. Porters Five Forces Analysis
13.1. Overview
13.2. Bargaining Power of Buyers
13.3. Bargaining Power of Suppliers
13.4. Degree of Competition
13.5. Threat of New Entrants
13.6. Threat of Substitutes
14. Price Analysis
15. Competitive Landscape
15.1. Market Structure
15.2. Key Players
15.3. Profiles of Key Players
15.3.1. Ruchi Soya Industries
15.3.1.1. Company Overview
15.3.1.2. Product Portfolio
15.3.1.3. Financials
15.3.1.4. SWOT Analysis
15.3.2. Adani Wilmar
15.3.3. Associated British Foods
15.3.4. Cargill Inc.
15.3.5. Archer Daniels Midland Company
15.3.6. Bunge Limited
15.3.7. Adams Group Inc
15.3.8. American Vegetable Oil Inc.
15.3.9. Phidco
15.3.10. SC Global
16. Research Methodology

Frequently Asked Questions:

What is the current size of the Coconut Oil Market?

The coconut oil market was valued at approximately USD 7405.3 million in 2023.

What factors are driving the growth of the Coconut Oil Market?

Key factors driving the market include increasing consumer awareness of coconut oil’s health benefits, the rising popularity of plant-based and vegan diets, and the oil’s versatile applications in culinary, cosmetic, and pharmaceutical sectors. Innovations in product development, such as organic and non-GMO varieties, also contribute significantly to the market growth.

What are the key segments within the Coconut Oil Market?

The market is segmented based on nature (organic and conventional), product type (virgin or extra virgin, refined, partially hydrogenated), end-use (food and beverages, cosmetics and personal care, pharmaceutical, household/retail, and others), and distribution channels (business to business, and business to consumer which includes hypermarkets/supermarkets, traditional grocery stores, convenience stores, specialty stores, and online retail).

What are some challenges faced by the Coconut Oil Market?

Challenges include health concerns about coconut oil’s saturated fat content, competition from other natural oils, supply and price volatility due to external factors like weather and labor issues, and sustainability concerns related to production practices like deforestation.

Who are the major players in the Coconut Oil Market?

Major players include Ruchi Soya Industries, Adani Wilmar, Associated British Foods, Cargill Inc., Archer Daniels Midland Company, Bunge Limited, Adams Group Inc, American Vegetable Oil Inc., Phidco, and SC Global.

Which segment is leading the market share?

The food and beverages segment leads the market share due to high demand driven by coconut oil’s health benefits and culinary versatility. This segment significantly utilizes coconut oil in various food products, contributing to its dominant market share.

UAE Cosmetic Market

Published:
Report ID: 30469

Baby High Chair Market

Published:
Report ID: 36303

Luxury Sanitary Ware Market

Published:
Report ID: 12501

Europe Scaffolding Market

Published:
Report ID: 37824

Night Cream Market

Published:
Report ID: 37619

Pod Vapes arket

Published:
Report ID: 37623

Microfinance Market

Published:
Report ID: 37630

Makeup Remover Market

Published:
Report ID: 37626

Indoor Farming Market

Published:
Report ID: 37634

Eco-friendly Furniture Market

Published:
Report ID: 37489

Electric Guitars Market

Published:
Report ID: 37121

United Kingdom Toothpaste Tablet Market

Published:
Report ID: 36979

Purchase Options

$2999
Delivery Format: Excel.
$4999
Designed for the individual purchaser.
$6999
Users located at a single corporate site or regional office.
$7999
Allowed for unlimited sharing globally within one company.
Smallform of Sample request

Have a question?

User Profile

Don’t settle for less – trust Mitul to help you find the best solution.

Report delivery within 24 to 48 hours

– Other Info –

What people say?-

User Review

I am very impressed with the information in this report. The author clearly did their research when they came up with this product and it has already given me a lot of ideas.

Jana Schmidt
CEDAR CX Technologies

– Connect with us –

Phone

+91 6232 49 3207


support

24/7 Research Support


sales@credenceresearch.com

– Research Methodology –

Going beyond the basics: advanced techniques in research methodology

– Trusted By –

Pepshi, LG, Nestle
Motorola, Honeywell, Johnson and johnson
LG Chem, SIEMENS, Pfizer
Unilever, Samsonite, QIAGEN