Virgin Coconut Oil Global Market Report 2024

The virgin coconut oil market size has grown strongly in recent years. It will grow from $2.25 billion in 2023 to $2.45 billion in 2024 at a compound annual growth rate (CAGR) of 8.9%. The expansion observed in the historical period can be attributed to various factors, including traditional and cultural usage of virgin coconut oil (VCO), a growing focus on health consciousness, research on medium-chain triglycerides, VCO serving as an alternative to trans fats, and an increasing demand in western markets.

The virgin coconut oil market size is expected to see strong growth in the next few years. It will grow to $3.46 billion in 2028 at a compound annual growth rate (CAGR) of 9.0%. The anticipated growth in the forecast period for virgin coconut oil (VCO) can be attributed to factors such as the globalization of coconut products, a rising demand for natural cosmetics, the expansion of e-commerce, the increasing popularity of vegan and plant-based diets, and growth in the nutraceuticals industry. Key trends expected during the forecast period include advancements in extraction technologies, innovations in packaging, an emphasis on sustainable and ethical sourcing and packaging practices, as well as the emergence of CBD-infused coconut oil products.

The anticipated surge in the demand for functional foods is poised to drive the growth of the virgin coconut oil market in the coming years. Functional foods, encompassing processed foods offering health benefits and disease risk reduction, can incorporate virgin coconut oil as an ingredient. This inclusion extends to various functional food categories such as functional beverages, nutritional spreads, dairy alternatives, baked goods, and snacks. For instance, the functional beverage market in Australia, valued at $451 million at the beginning of 2022, witnessed a 2.8% rise by the year-end, according to New Zealand Trade and Enterprise Highlights. Additionally, the global functional foods market, valued at £209.6 billion ($259.96 billion) in 2021, is projected to grow at a rate of 9.5% from 2021 to 2028, as reported by the Department for Business and Trade, a UK-based government agency. Thus, the increasing demand for functional foods is a major driver behind the growth of the virgin coconut oil market.

The growing preference for organic cosmetic products is expected to contribute significantly to the expansion of the virgin coconut oil market. Organic cosmetic products, characterized by a high proportion of natural ingredients and the absence of synthetic chemicals, often include virgin coconut oil in their formulations. This aligns with the broader trend towards healthier lifestyles and sustainable consumption. The Soil Association reported a 15% growth in sales of certified organic and natural beauty products to nearly $175 million (£138 million) in 2021. This emphasizes the rising demand for organic cosmetic products, driving the growth of the virgin coconut oil market.

A prominent trend gaining traction in the virgin coconut oil market is product innovation. Companies in this market are actively introducing innovative products to maintain their competitive positions. For example, Marico Limited, an India-based consumer goods company, launched Parachute Advansed Baby in August 2023 - a range comprising massage oil, nourishing soap, nourishing shampoo, nourishing lotion, nourishing cream, and refreshing powder. Infused with the beneficial properties of 100% virgin coconut oil, the range is designed to provide optimal care for sensitive baby skin. Emphasizing a delicate balance between science and nature, each product is doctor-certified, safe for newborns, and tailored to meet the specific needs of infants.

Major companies operating in the virgin coconut oil market are strategically focusing on advanced technologies, such as cold press technology, to introduce innovative virgin coconut oil (VCO) solutions. Cold press technology, involving the extraction of juices, oils, or liquids from raw materials without the use of heat, helps preserve the inherent healthiness, nutrients, enzymes, and antioxidants present in plants. Dabur India Ltd., an India-based ayurvedic and natural health care company, launched Virgin Coconut Oil in February 2022, utilizing cold press technology to maintain the oil's authenticity, flavor, aroma, and essential nutrients. This approach is crucial in providing consumers with the nutritional benefits of MCTs (medium chain triglycerides) for digestion, energy release, and weight management.

In April 2022, Matrix Partners, a US-based marketing agency in the pet products industry, entered into a partnership with CocoTherapy. This collaboration aimed to leverage Matrix Partners' expertise in social media to enhance the marketing efforts of CocoTherapy, a USDA-certified coconut oil company providing healthy treats and organic virgin coconut oil for dogs and cats.

Major companies operating in the virgin coconut oil market report are Archer-Daniels-Midland Company, The Hain Celestial Group, Dabur India Limited, Marico Ltd., Hain Celestial Group, NOW Foods Group Inc., Garden of Life LLC, Jarrow Formulas Inc., Nature's Plus, Edward and Sons Trading Company, Nutiva Inc., La Tourangelle, Kapiva, Barlean's Organic Oils LLC, Bioriginal Food & Science Corp, Jax Coco, Nutriorg, Healthy Traditions Inc., iTi Tropicals Inc., Celebes Coconut Corporation, Sun Bionaturals Private Ltd., Spectrum Organic Products LLC, SC Global Coco Products Inc., Greenville Agro Corporation, Viva Naturals, PT. Harvard Cocopro, Growrich Manufacturing Inc., WOW Skin Science, KLF Nirmal.

Asia-Pacific was the largest region in the virgin coconut oil market in 2023. The regions covered in the virgin coconut oil market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the virgin coconut oil market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The main types of virgin coconut oil include organic and conventional variants. Organic virgin coconut oil is known for aiding in nutrient absorption, improving digestion, and potentially alleviating symptoms of inflammatory diseases. It is distributed through both offline and online channels and is used in various applications, including direct consumption, indirect consumption, food and beverages, cosmetics and personal care, as well as pharmaceutical applications.

The virgin coconut oil market research report is one of a series of new reports that provides virgin coconut oil market statistics, including virgin coconut oil industry global market size, regional shares, competitors with a virgin coconut oil market share, detailed virgin coconut oil market segments, market trends and opportunities, and any further data you may need to thrive in the virgin coconut oil industry. This virgin coconut oil market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The virgin coconut oil market consists of sales of coconut-based hair oils, shampoos, lotions, massage oils, and scented candles. 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.