Global Coconut Syrup Market - Forecasts from 2022 to 2027

The global coconut syrup market was valued at US$429.393 million in the year 2020, growing at a CAGR of 4.86% reaching a market size of US$ 598.511 million by the year 2027. The coconut syrup market is expected to grow at a significant rate in the coming years.

Coconut syrup, also known as a natural sweetener, is formed from the nectar of coconut fruit and flowers. The flowers release nectar or sap. The sap is then heated, and the water evaporates, which gives a concentrated coconut syrup. The coconut syrup can also be prepared from coconut water, citric acid, sugar, preservatives, and creamed coconut. It has a white appearance with a tangy, buttery, and rich caramel-like flavor. It is mainly used in the food and beverage industries. It has a specific range of medical and health properties, which will also lead to a surge in the demand for coconut syrup in the coming years. Natural syrups are in constant demand in the market because of their nutritious properties. Coconut syrup has a significant presence in the Asia-Pacific, followed by North America and Europe.

Millennials are generating a significant impact on the market

The growing demand for natural and sugar-free products is developing a trend in the market. There are a lot of consumers that are now constantly changing their preferences. There is a surge in sugar-free products, led by health-conscious consumers worldwide. Because of that, natural sweeteners are gaining significant prominence worldwide. This gradual shift among consumers has opened a new wave and a plethora of opportunities for various stakeholders in the natural syrup market. Food and beverages are making a significant impact on the market. The companies are investing a huge amount of capital into organic and conventional syrups. A Coconut syrup comes in flavoured and unflavored types. The nectar of the coconut flour is treated to avoid caramel flavor and fermentation. The processing of coconut syrup is very efficient and is free from additional harmful preservatives. It is generating a significant demand because of its phytonutrient and antioxidant properties. It is also useful and beneficial for diabetes and obesity problems. Coconut syrup is also known for its lower glycemic index. There is some research conducted by various prominent research institutions related to coconut syrup ingredients. A lower glycemic index prevents chronic diseases. The syrup has vitamin B, vitamin C, and amino acid properties and benefits. It is also used as a flavor enhancer and as a topping for various bakery products. With the surging consumer knowledge about the health applications of a food product, the demand for coconut syrup will continue to soar at a significant rate.

The Organic Segment to Register a significant Growth

Organic segments and conventional segments are the two types of coconut syrup that come under the natural segment. Conventional coconut syrup has a major and substantial share in the market and will continue to have significant growth. This is due to the fact that the average life of the coconut tree is around 40 years, which removes the hurdle of continuous replantation. Conventional syrups have additional preservatives. On the other hand, the organic syrup is free from preservatives and has a comparatively lower glycemic index as compared to agave, honey, and cane sugar. Organic Syrup will also have decent growth owing to various consumer preferences. In the future, the supply chain of conventional coconuts could be disrupted due to low and minimum yields, which in turn could be beneficial for organic coconut suppliers. But, in the long term, the conventional segment will continue to hold a significant share.

The liquid syrup segment continues to grow

The liquid segment holds the majority of the global market share because of its availability. There are other reasons, such as the lower cost of the processing method. The powdered segment will also have decent growth because of the surge in the number of players operating in the industry and investing more capital in R & D and inventory.

The sweetening segment continues to have an impact

The sweetening segment holds the majority of the share in the global coconut syrup market and will continue to have a significant impact in the future. This is due to its sweetening properties and applications in food and beverage segments. It sweetens or neutralizes the various tastes in a specific beverage, such as milk, alcohol, and others. The flavouring segment also holds a significant share after the sweetening segment as it is also in demand for its use in various beverages such as smoothies, cocktails, milk, and others. It is also used in various food-based products such as baked goods, confectionery, salads, sauces, and dairy. The preservative and texturing segments will also show significant growth.

The surge in demand for coconut syrup in food products

The food segment will continue to hold the majority of the market share, followed by the beverage segment. This is due to the demand for coconut syrup in various food-based products such as cakes, biscuits, sweets, chocolates, sauces, and salads. The beverage segment will also register significant growth in the market.

Distribution Channel

The offline segment, such as supermarkets and retail stores, has a major market share. Companies tend to direct the product to the consumer with traditional methods. It is a relatively new market, and the manufacturers have a significant role in marketing and sales. The online segment will continue to grow as the demand for coconut syrup surges and with continuous advancement in e-Commerce sales, manufacturers will tend to look at more options.

Regional Analysis

The Asia-Pacific region holds the majority of the market share in terms of revenue as well as exports. Health-conscious consumers will drive significant growth in the coming years due to a surge in health-conscious consumers. Europe will also have decent growth in the future. The Asia-Pacific region is leading because of the easy availability of coconut fruit and because a lot of farmers are in the coconut cultivation sector. The region has the most population and is the fastest-growing region. Countries like Indonesia, Thailand, the Philippines, Sri Lanka, and India are some of the major exporters of coconut worldwide. China and the USA are the major importers of coconut.

Key Developments:

• Marico Limited has introduced coconut spreads under its vegan gourmet food range category. The newly launched product is free from additives, and it is manufactured by using milk and syrup. This new product will drive the demand for natural sweetening agents such as coconut syrup in the market.

COVID 19 Impact:

Covid-19 has positively impacted the overall market growth owing to the growing demand by consumers for healthy food and drinks to boost their immunity. Coconut syrup is a great source of amino acids and vitamins due to which it is majorly preferred by health-conscious people globally. Moreover, the growing use of coconut syrup by end-use industries such as bakeries and confectionary will significantly contribute to the overall market growth. The rising demand for healthy additives in bakery & confectionary products will significantly contribute to the overall market growth during the forecast period.

Competitive Analysis

Some of the major coconut syrup companies are Singabera, Bali Nutra Ltd., Benevelle Corporation, Wholesome Sweeteners Inc., Wichy Plantation Company, Pvt. Ltd., and Coconut Merchant Ltd. There is considerable competition as there are a substantial number of manufacturers worldwide. Local players have an imperative role in the coconut syrup industry. Bigger companies are investing significant capital in the research and development of natural sweeteners.

Market Segmentation

By Nature

• Organic
• Conventional

By Form

• Liquid
• Powdered

By Function

• Sweetening
• Preservative
• Texturing
• Flavoring

By Applications

• Food
• Bakery and Confectionary
• Dairy
• Beverage
• Alcoholic Beverages
• Milk

By Distribution Channel

• Offline
• Hypermarkets
• Online

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Europe
• Germany
• France
• United Kingdom
• Italy
• Middle East and Africa
• Saudi Arabia
• South Africa
• Asia Pacific Region
• China
• India
• Japan
• South Korea