Extensive Applications in Food and Beverages, Cosmetics Industry Drives Global Coconut Oil Market to Robust Maturity

November 2022

Coconut oil is known to contain essential oils and minerals while being odorless and tasteless. This is positively driving its demand across diverse industries. This factor is supported by the growing consumer demand for healthy, natural, and organic products. As a result, the use of coconut oil is increasing, especially in the F&B sector. A recent study by Fairfield Market Research indicates the strong presence of fruitful business opportunities in the coconut oil market.

In 2021, the global coconut oil market was valued at US$5.3 Bn and is poised to attain a valuation of US$8.2 Bn by the end of 2029. Between the forecast years of 2022 to 2029, the market is expected to observe an estimated CAGR of 5.7%. Since coconut oil provides a wide range of benefits to maintain good skin health, its demand in the cosmetics industry is set to witness a notable increase. Moreover, the demand for virgin coconut oil is also set to influence product innovation and revenue generation across the coconut oil market.

Prominent Trends Across Coconut Oil Market

  • The demand for dry coconut will be higher as opposed to wet coconut, with the former predicted to account for a considerable market share of US$3.7 Bn
  • On the basis of applications, the food and beverages segment is anticipated to register a greater demand for coconut oil owing to its benefits for maintaining sound health
  • Asia Pacific is set to sustain its dominance as the largest coconut oil market with an expected value CAGR of 6.3% by 2029 end

Use of Coconut Oil for Cooking, and Personal Care Purposes to Steer Market Growth

Coconut oil has a wide range of uses in diverse industries such as food, cosmetics, and industrial production. The properties of coconut oil, such as its high saturated fat content, make it viable for use in tropical regions. During the forecast period, the rising demand for natural and organic products is predicted to positively influence the consumption of coconut oil. Moreover, the high smoke point and antioxidant properties of coconut oil make it suitable for cooking purposes, which elevates the prospects of coconut oil market.

On the other hand, when it comes to the cosmetics industry, the applications of coconut oil are steadily growing. Since it contains essential minerals and oils, it is extensively used as a moisturizing agent in skincare and personal care products. These versatile applications of coconut oil are poised to advance market competition among industry leaders, with companies investing more in marketing campaigns to differentiate their offerings.

Strong Presence of Traditional Consumers Enables Asia Pacific to Maintain Lead in Coconut Oil Market

The Asia Pacific is set to sustain its leadership position in the coconut oil market. In this region, the growing demand for healthier food options, the presence of a large base of traditional consumers, and consistent product launches are playing a vital role in expanding the business potential of its coconut oil market. Meanwhile, the emerging demand for virgin coconut oil is strongly driving its production in North America, and Europe; this is expected to open new revenue streams in these regions.

Major Market Players

Some of the top-performing players in the global coconut oil market include Adams Group, ADM, ADANI GROUP, Barlean's Organic Oils LLC, BUNGE, Cargill, Connoils LLC, Greenville Agro Corp, HAIN CELESTIAL, and Nutiva Inc.