Desiccated Coconut Powder Market - Growth, COVID-19 Impact, Trends, and Forecasts (2022 - 2027)

The desiccated coconut powder market is projected to register a CAGR of 7.45% during the forecast period, 2021-2026.

On the one hand, the COVID-19 pandemic has made a significant impact on the desiccated coconut powder market due to the halt in production and disturbance in the supply chain owing to which the various end-user industries of the category such as bakery, dairy product, frozen dessert, etc., accounted decline in production hence directly impacted the end-user as well as desiccated coconut industry.

For example, the Gaja cyclone in 2018 and the incidence of Rugose Whitefly in 2019, coupled with the COVID-19 pandemic, had a detrimental impact on coconut farmers, and they had to incur additional costs due to scarcity of laborers and challenges in transportation. This has further affected the market for processed coconut products at an industrial level.

In the medium term, the growth in the consumption of coconut-based products among consumers is expected to drive the use of coconut-based products in food and beverage applications in the future. Sales of coconut-based ingredients, such as coconut powder, are growing, and these products are widely used as ingredients in various processed food products.

Moreover, increased demand for organic food products due to the absence of chemicals used across the supply chain provides new opportunities for coconut-based food products. According to the Research Institute of Organic Agriculture (FiBL), organic food sales increased by 51.03% in 2018, compared to 2011, and reached USD 95 billion. Therefore, advantages offered by organic desiccated coconut powder are expected to boost the growth of coconut-based food products on the retail shelves and at the industrial scale during the forecast period.

Key Market Trends

Nutritional Benefits of Coconut-based Products

Consuming coconut powder-based food products could improve cholesterol levels. Studies claim that people who consume coconut-based food in their diets lower their LDL or "bad" cholesterol while their HDL or "good" cholesterol increases. Healthy cholesterol levels are essential for heart health. Additionally, coconut powder is a source of healthy fats called medium-chain triglycerides (MCTs). Several studies have found that consuming MCTs promotes weight loss by decreasing appetite and increasing energy. The minerals in coconut are involved in many functions in the body. Coconut is especially high in manganese, which is essential for bone health and the metabolism of carbohydrates, proteins, and cholesterol. They are also rich in copper and iron, which help form red blood cells, as well as selenium, an important antioxidant that protects body cells. Thus, the demand for coconut-based food and beverage is growing, which, in turn, eventually boosting the desiccated coconut powder market significantly.

Asia-Pacific Holds a Significant Market Share

The demand for coconut-based products has been huge in the Asia-Pacific region, owing to the rising consumer awareness regarding its nutritional benefits. The Asia-Pacific region is one of the major producers of coconuts, and the region is also involved in the exportation of coconut and coconut by-products, including desiccated coconut powder to various other countries to boost the trade business. Moreover, according to the data published by the Food and Agriculture Organization (FAO), India is the third-largest producer of coconut worldwide, with a production of 11.71 million metric ton in 2018. Therefore, the country is self-sufficient to cater to the supply of coconut powder and other by-products to varied end-use industries.

Competitive Landscape

Some of the major players in the desiccated coconut powder market are Primex Coco Products, V V Industries, VIET DELTA, Silvermill Group, Davidsun Coconut Products, and Vittal Agro, among others. The market studied is highly fragmented, with numerous domestic players existing with strong distribution networks and international food certifications. Companies are increasing their investments in production capacity expansion and expanding their distribution channels to maintain their positions in the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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