Coconut Sugar Market Report 2026

The coconut sugar market size has grown strongly in recent years. It will grow from $2.21 billion in 2025 to $2.33 billion in 2026 at a compound annual growth rate (CAGR) of 5.5%. The growth in the historic period can be attributed to rising health awareness among consumers, growing preference for natural sugar alternatives, expansion of coconut cultivation in tropical regions, increasing use of coconut sugar in specialty foods, development of organized retail channels.

The coconut sugar market size is expected to see strong growth in the next few years. It will grow to $2.99 billion in 2030 at a compound annual growth rate (CAGR) of 6.4%. The growth in the forecast period can be attributed to increasing demand for functional and diabetic-friendly sweeteners, expansion of organic food consumption, rising use in cosmetics and personal care formulations, growth of e-commerce food distribution, increasing focus on sustainable sweetener sourcing. Major trends in the forecast period include increasing demand for natural and low-glycemic sweeteners, rising adoption of organic coconut sugar products, growing use in vegan and plant-based diets, expansion of clean-label food formulations, improved processing and packaging techniques.

The growing global prevalence of diabetes is expected to drive the expansion of the coconut sugar market in the coming years. Diabetes is a long-term metabolic condition marked by elevated blood glucose levels caused by insufficient insulin production or ineffective insulin use by the body. Coconut sugar has a lower glycemic index compared to conventional table sugar, resulting in a slower increase in blood sugar levels and making it a more suitable sweetening option for individuals managing diabetes. For example, in June 2024, according to the National Health Service, a UK-based publicly funded healthcare system, the latest National Diabetes Audit reported that in 2023, 3,615,330 individuals registered with a general practitioner were diagnosed with non-diabetic hyperglycaemia, commonly known as pre-diabetes. This represented an increase from 3,065,825 cases in 2022, reflecting a rise of nearly 18%. Therefore, the escalating global diabetes burden is contributing to the growth of the coconut sugar market.

Companies operating in the coconut sugar market are increasingly focusing on advanced strategies such as single-origin ingredient diversification to enhance flavor quality and expand culinary applications. Single-origin ingredient diversification ensures traceability to a specific geographic region and producer, offering consistent quality along with distinctive taste characteristics. For instance, in February 2025, Burlap & Barrel, a US-based specialty food company, introduced powdered coconut sugar sourced from Kulon Progo, Indonesia. This product added to the company’s portfolio of five single-origin sugars and emphasized transparent sourcing and artisanal processing methods. The powdered coconut sugar is derived from the nectar of coconut palm blossoms and milled into a fine powder that dissolves easily in hot beverages. The company highlights its low glycemic index and warm, toasty flavor profile, making it suitable for both sweet and savory recipes and positioning it as a versatile alternative to traditional sweeteners.

In March 2024, Sugar Foods Corporation, a US-based food manufacturing company, acquired Concord Foods for an undisclosed amount. Through this acquisition, Sugar Foods Corporation aims to strengthen supply chain efficiency and broaden its product portfolio, enabling it to serve a wider customer base while benefiting from the increasing demand for convenient, high-quality food products. Concord Foods is a US-based food manufacturer known for producing a diverse range of offerings, including frozen fruits, vegetables, and culinary ingredients.

Major companies operating in the coconut sugar market are Big Tree Farms Inc., Nutiva Inc., Madhava Ltd, Treelife Ltd., Groovy Food Company Ltd., PT Mega Inovasi Organik, The Divine Foods, Connecticut Coconut Company, Coco Sugar Indonesia, Earth Circle Organics LLC, Coconut Secret, Thai Organic Coconut Sugar Co Ltd., Pura Vida Farms LLC, Paradise Ingredients LLC, Kokos Natural LLC, Natural Sweet Company, Windmill Organics Ltd., The Coconut Company Ltd., Tradin Organic Agriculture BV, Celebes Coconut Corporation.

Asia-Pacific was the largest region in the coconut sugar market in 2025. The regions covered in the coconut sugar market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the coconut sugar market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The coconut sugar market consists of sales of powdered coconut sugar, organic coconut palm sugar, granular coconut sugar, and liquid coconut sugar. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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