The Global Coconut Oil Market size is expected to reach $4,554.2 million by 2027, rising at a market growth of 7.2% CAGR during the forecast period.
Coconut oil is derived from tender or dried coconut kernels, and it is colorless and tasteless oil. The coconut oil is mainly found in two types i.e. refined or virgin oil and unrefined oil, depending upon its process of extraction. The refined coconut oil is mostly used as food oil while unrefined coconut oil is unprocessed & unbleached, which is hardly used for consumption.
Coconut oil, also known as coconut butter, is edible oil that is obtained from the meat, wick, and milk of the coconut palm fruit. Coconut oil is found in the form of white solid fat that starts melting at moderate room temperature of around 25 °C and during summer season it is always found in liquid state. Additionally, it is excessively used in cooking vegetables in southern part of India. Coconut oil has also found its applications in various industries like detergent and cosmetics. Hence, the extensive application of coconut oil in various industries is expected to create new growth avenues for the coconut oil market in the upcoming years.
COVID-19 Impact Analysis
With the fatal progression of COVID-19, the world witnessed an unparalleled series of events which were not conducive for the growth of majority of the industries. Moreover, non-essential items like coconut oil were not in the priority list of the consumers, which hampered the overall growth of coconut oil market during the forecast period.
The supply of raw materials is one of the significant aspects in the value chain of the coconut oil market, where the major players and the providers are witnessing the issues because of the poor logistics, and lockdown conditions that restricted the movement in the affected countries around the world, which can result in severe disruptions across the supply chain.
Market Growth Factors:
Rapidly increasing demand for natural cosmetic products
In the era of modernization, people are majorly focusing on taking the best care of their hair and skin. Women across the world are the major contributor to the sales of beauty and personal care products. In the past few years, customers’ preferences have changed from artificial chemical products to natural products. The increasing usage of organic and natural products is estimated to fuel the growth of the coconut oil market during the forecast period. Social media platforms play an important role in the acceptance of organic products.
High demand for coconut oil in the food and beverage industry
Coconut oil is widely used in various ready-to-east snacks, due to the various health benefits, which is expected to accelerate the demand and growth of the coconut oil market in the coming years. In addition, coconut oil is a better substitute used in bakery products as it is cheaper than the baking butter or oil and also makes the bakery product lighter in taste. Further, the utilization of coconut oil in food products is very helpful in gaining quick energy, which is creating more demand for coconut oil among the manufacturers of various food products.
Marketing Restraining Factor:
Higher dependency of the manufacturers on import of coconut oil
Manufacturers across various nations of the world are highly dependent on importing coconut oil from other countries with abundant availability, for the manufacturing of various products. This creates a gap between demand and supply of coconut oil, which further increases the prices of various final products that is expected to hamper the demand and growth of the coconut oil market. Several nations like India, have a sufficient amount of coconut oil to export, however, companies in other nations need to buy it, which increases the overall cost of their products.
Product Type Outlook
Based on Product Type, the market is segmented into Virgin Coconut Oil, and Coconut RBD Oil. In 2020, the coconut RBD oil segment acquired the maximum revenue share of the coconut oil market. In addition, the segment is expected to display a promising growth rate over the forecasting years. The major factors that are accountable to boost the growth of the segment over the forecast years are the rise in awareness about benefits offered by coconut RBD oil and a significant growth in the number of health conscious consumers.
Price point Outlook
Based on Price Point, the coconut oil market is divided into Mass and Premium. The Mass segment acquired the highest market share during the forecast period.
Application Outlook
Based on Application, the market is segmented into Food industry, Agriculture, Cosmetics & personal care industry, Chemical Industry, and Others. Based on Packaging, the coconut oil market is segregated into Bottle, Jar, Can, Pouch, Tanks, and Others. In 2020, the food industry segment dominated the coconut oil market and is projected to continue its dominance over the forecasting years. Coconut oil is majorly used in food industries in large quantity for the production of coconut products.
Packaging Outlook
Based on Packaging, the coconut oil market is segregated into Bottle, Jar, Can, Pouch, Tanks, and Others. In 2020, the bottle segment dominated the coconut oil market and is anticipated to continue its dominance during the forecasting years. Plastic bottles are very easy to handle & use and are also available in different sizes and due to these reasons, plastic bottles have gained traction across the world.
Regional Outlook
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2020, Europe emerged as the leading region in the overall coconut oil market and is anticipated to maintain its position during the forecast period. The growing usage of coconut oil in the preparation of food like snacks, ready-to-eats meals, bakery products, and confectioneries is highly driving the growth of the regional market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include The Hain Celestial Group, Inc., Archer Daniels Midland Company, Bunge Limited, Adani Wilmar Limited, Wichy Plantation Company (Pvt) Ltd (Bitumix (Pvt) Ltd), Windmill Organics Ltd., Marico Limited, Cargill Corporation.
Recent Strategies Deployed in Coconut Oil Market
- Sep-2021: ADM expanded its geographical footprints in Pinghu, Zhejiang Province, China by introducing ADM Food Technology, a fully automated flavor production facility. This facility is expected to serve as ADM’s flavor supply hub across Asia-Pacific, enabling the company to leverage its expertise and leading-edge technologies and create the ADM pantry to fulfill the customer requirements and accelerate its growth strategy.
- Feb-2021: Bunge Loders Croklaan expanded its geographical reach in Europe by introducing an organic portfolio. Through this expansion, the company aimed to meet the growing demand for sustainable and organic fats & oils. Moreover, the expanded portfolio is expected to provide a constant and scalable supply of organic fats and oils, ranging from rapeseed, soy, and sunflower to shea, coconut, and palm.
- Apr-2020: Marico joined hands with Swiggy and Zomato, the online food ordering platforms. Under this collaboration, Zomato and Swiggy is expected to deliver necessary food items under the Marico portfolio that comprises Saffola Masala Oats, Saffola Oils, Coco Soul Virgin coconut oil, and Saffola Plain Oats at the doorsteps of the consumers.
- Mar-2020: Bunge Loders Croklaan introduced a new oils portfolio for companies in the plant-based meat industry. These new ingredients is expected to assist in replicating the sensory properties of conventional meat products. The company's latest portfolio comprises specialty fat fractions, emulsifiers, flakes, oils, and shortenings that are made from coconut, palm fruit, sunflower, and canola oils.
- May-2019: Marico unveiled Parachute Advansed Coconut Creme Oil, a unique blend of nourishing coconut oil and soft coconut milk. This oil is expected to bring back the wonders of oiling via a new age format, which provides the softness of coconut milk and strength of coconut oil.
- Apr-2019: Marico Limited released Coco Soul, a range of Vegan Gourmet products. These vegan gourmet products comprise 100% natural virgin coconut oil, 100% natural infused variants of cold-pressed virgin coconut oil, 100% organic virgin coconut oil, and coco soul foods that comprise coconut chips, 100% organic coconut sugar, and coconut spreads that are made utilizing the super food coconut.
- Mar-2018: Marico introduced new Parachute Ayurvedic hair oil. This oil is developed to promote hair growth and curb hair fall problems.
- Mar-2018: Bunge Limited took over 70% ownership interest in IOI Loders Croklaan from IOI Corporation Berhad. Through this acquisition, Bunge is expected to become a global leader in business-to-business oil solutions by expanding value-added capabilities, scale, and reach across major geographies.
- Feb-2017: Hain Celestial unveiled Plaintains with sea salt and Sweet Plantains. These products is expected to improve the natural flavors of the vegetable, celebrating the origins, diverse tastes & textures of each vegetable that are crafted into chips.
Scope of the Study
Market Segments Covered in the Report:
By Product Type
- Virgin Coconut Oil
- Coconut RBD Oil
By Price Point
- Mass
- Premium
By Application
- Food industry
- Agriculture
- Cosmetics & personal care industry
- Chemical Industry
- Others
By Packaging
- Bottle
- Jar
- Can
- Pouch
- Tanks
- Others
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- The Hain Celestial Group, Inc.
- Archer Daniels Midland Company
- Bunge Limited
- Adani Wilmar Limited
- Wichy Plantation Company (Pvt) Ltd (Bitumix (Pvt) Ltd)
- Windmill Organics Ltd
- Marico Limited
- Cargill Corporation
Unique Offerings from the Publisher
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Table of Contents
Companies Mentioned
- The Hain Celestial Group, Inc.
- Archer Daniels Midland Company
- Bunge Limited
- Adani Wilmar Limited
- Wichy Plantation Company (Pvt) Ltd (Bitumix (Pvt) Ltd)
- Windmill Organics Ltd
- Marico Limited
- Cargill Corporation
Methodology
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