Coconut Butter Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Coconut Butter Market is projected to expand from USD 1.51 Billion in 2025 to USD 2.53 Billion by 2031, reflecting a compound annual growth rate (CAGR) of 8.98%. Defined as a creamy spread made by grinding coconut meat while retaining its oil and fiber, the product serves as a nutrient-rich substitute for dairy or nut butters. This growth is fundamentally underpinned by a structural transition toward plant-based and lactose-free diets, rather than mere fleeting consumption fads. Additionally, the enduring popularity of ketogenic and paleo lifestyles has reinforced the demand for clean-label, high-fat ingredients, establishing coconut butter as an essential item for health-focused individuals worldwide.

Despite its potential, market growth contends with significant obstacles related to raw material price instability, which arises from aging coconut plantations and climatic unpredictability in major export zones. These supply-side limitations frequently lead to volatile production costs that can hinder wider market reach; nevertheless, global trade remains robust. Data from the United Coconut Association of the Philippines indicates that coconut product exports reached 196,947 metric tons in September 2024, representing a 30.1% rise over the same month the prior year. This statistic underscores the persistent global appetite for coconut derivatives even amidst complex supply chain conditions.

Market Drivers

The surging preference for dairy-free and lactose-free products acts as a primary catalyst for the global coconut butter market. As consumers prioritize plant-based nutrition, coconut butter has emerged as a crucial functional ingredient, providing the requisite fat content and creamy texture to mimic traditional dairy butter in vegan recipes. This structural trend is quantified by the robust trade of similar high-fat coconut derivatives used in clean-label products. For example, the Sri Lanka Export Development Board reported in December 2024 that export earnings for coconut milk powder and coconut cream - vital benchmarks for the dairy-alternative sector - saw year-on-year growth of 39.35% and 28.97%, respectively, between January and November, highlighting the growing role of nutrient-dense coconut fats in meeting global demand.

Concurrently, market growth is supported by increased adoption within the bakery and confectionery industries, where coconut butter and its base ingredients are valued for their binding capabilities and unique flavor. Manufacturers are actively incorporating these components into cakes, cookies, and chocolates to attract health-conscious consumers. This industrial demand was illustrated by Axelum Resources Corp., which noted in April 2025 that sales volume for desiccated coconut, a primary input for butter production, increased by 36% in 2024 due to revitalized export markets. This momentum bolsters the industry's resilience; as reported by the General Department of Customs Vietnam in February 2025, the nation's total coconut exports approached $1.1 billion in 2024, a growth of over 20% compared to the prior year.

Market Challenges

A major impediment to the Global Coconut Butter Market is the volatility of raw material prices combined with supply-side limitations. Producing coconut butter requires high-quality, mature coconut meat, a resource that is highly sensitive to climatic stability. Factors such as aging plantations and weather disruptions like El Niño frequently interrupt crop cycles, leading to unpredictable yields and reduced nut sizes that are often inadequate for meat-based processing. These biological constraints limit the feedstock available to butter manufacturers, pushing them into a procurement landscape defined by uncertain availability and fluctuating input costs.

This scarcity is highlighted by the discrepancy between general coconut trade and specific meat-based derivatives. According to the United Coconut Associations of the Philippines, exports of desiccated coconut - a meat-based product closely tied to butter-grade supplies - fell by 4.6% to 13,720 metric tons in September 2024 compared to the previous year. This decline in the meat segment, which occurred despite a general increase in lower-grade oil exports, emphasizes the shortage of premium raw materials. Such instability compromises manufacturers' ability to sustain competitive pricing strategies and hinders consistent market expansion.

Market Trends

The market is being reshaped by the increasing use of coconut butter in DIY beauty and personal care routines, expanding its application beyond the kitchen. Consumers are leveraging the product's rich fatty acid content to formulate homemade hair masks and skin moisturizers, effectively blurring the distinction between cosmetic ingredients and pantry staples. This shift is fueling a rise in the trade of specialized derivatives used as bases for such products; for example, the United Coconut Association of the Philippines reported in June 2025 that shipments of hydrogenated coconut oil - a key structural component for cosmetic butters - surged by 105.6% year-on-year to 3,150 metric tons in January 2025. This volume growth suggests a strong parallel consumption channel, encouraging manufacturers to market high-purity, multi-purpose products suitable for both dietary and topical use.

In parallel, the market is experiencing a structural evolution toward fair trade and ethically sourced supply chains, propelled by corporate sustainability goals and consumer demand for traceability. Industry stakeholders are increasingly engaging in pre-competitive collaborations to standardize harvesting methods and guarantee living wages for farmers, aiming to secure long-term premium market positioning. This sector-wide movement is demonstrated by recent high-profile gatherings; in September 2024, the Philippine Coconut Authority announced that the 'Sustainable Coconut Roundtable 2024' convened over 200 participants, including major global traders and buyers, to align on responsible sourcing standards. Such initiatives are rapidly shifting voluntary sustainability certifications from niche differentiators to essential requirements for accessing Western markets.

Key Players Profiled in the Coconut Butter Market

• Windy City Organics LLC
• Windmill Organics Ltd.
• The Hain Celestial Group Inc.
• Hallstar Innovations Corp.
• Celebes Coconut Corp
• GOODFAT
• Artisana Organics
• Andy Albao Corporation
• Team Asia Corp.
• Wichy Plantation Co. Pvt. Ltd.

Report Scope

In this report, the Global Coconut Butter Market has been segmented into the following categories:

Coconut Butter Market, by Type:

• Organic
• Conventional

Coconut Butter Market, by End-Use:

• Cosmetics and Personal Care Industry
• Food and Beverage Industry
• Others

Coconut Butter Market, by Distribution Channel:

• Supermarkets/hypermarkets
• Convenience Stores
• Online
• Others

Coconut Butter Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Coconut Butter Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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