Desiccated Coconut Powder Market Size, Share, Growth Report 2032

Industry Prospective:

The global desiccated coconut powder market size was worth around USD 4.76 billion in 2022 and is predicted to grow to around USD 6.34 billion by 2030 with a compound annual growth rate (CAGR) of roughly 3.82% between 2023 and 2030. The report analyzes the global desiccated coconut powder market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the desiccated coconut powder industry.

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Desiccated Coconut Powder Market: Overview

Desiccated coconut is made out of the flesh of mature coconuts. It is graded or shredded into thin and small pieces. To remove the moisture content of this form of coconut, the pieces are dried which usually takes place using sunlight or hot air. The resultant form of coconut is called desiccated coconut. It showcases a coarse texture and it is slightly nutty, sweet in flavor. For the powder form of desiccated coconut, the product is finely grounded into a coherent powder form and the primary difference between the shredded form is the texture. In the powder form, the texture resembles soft powder.

The main reason for the growing preference for desiccated coconut in powder form is its ease of use and application in several culinary items. The powder form allows it to be distributed and absorbed evenly by the ingredients. The industry deals with the product, marketing, and distribution of desiccated coconut powder and is expected to grow at a steady rate during the forecast period.

Key Insights:

• As per the analysis shared by our research analyst, the global desiccated coconut powder market is estimated to grow annually at a CAGR of around 3.82% over the forecast period (2023-2030)
• In terms of revenue, the global desiccated coconut powder market size was valued at around USD 4.76 billion in 2022 and is projected to reach USD 6.34 billion, by 2030.
• The desiccated coconut powder market is projected to grow at a significant rate due to the expanding food & beverage sector
• Based on application segmentation, the bakery was predicted to show maximum market share in the year 2022
• Based on distribution channel segmentation, indirect was the leading channel in 2022
• On the basis of region, Asia-Pacific was the leading revenue generator in 2022

Desiccated Coconut Powder Market: Growth Drivers

Expanding Food & Beverage (F&B) sector to drive market growth

The global desiccated coconut powder market is projected to grow owing to the expanding F&B sector across the world. This form of dried coconut is used in a wide range of products including baked goods, confectionery, cereals, snacks, and beverages. In some parts of the world, desiccated coconut in powder form is an integral part of diet culture owing to the several health benefits associated with its consumption.

For instance, it is known to be nutrient-rich and it contains high levels of vitamins such as vitamins C, E, and B along with acting as an excellent source of iron, magnesium, and potassium. The powder form results in the product being exceptionally easy to blend when compared to the traditional larger shreds or flakes. The final product achieves a smoother texture when desiccated coconut powder is used for preparation. As the global F&B sector undergoes rapid expansion influenced by changing consumer preferences, the market is expected to hold on to its steady growth momentum.

Desiccated Coconut Powder Market: Restraints

Shelf life and storage considerations to restrict market expansion

Desiccated coconut powder has a longer shelf life than fresh coconut. However, this can only be achieved if the powder form is stored under the right conditions so that the quality and texture of the product can be maintained over time. Exposure to moisture can impact the texture, flavor, and overall quality of the product. This poses a major concern for manufacturers, retailers, and distributors along with other associated stakeholders in terms of product preservation and inventory management.

Desiccated Coconut Powder Market: Opportunities

Growing demand for gluten-free diet programs to provide growth opportunities

The global desiccated coconut powder industry is expected to benefit from the rising consumption of gluten-free food products as dietary preference across the globe is witnessing a drastic change and shift. The demand for gluten-free alternatives in baking and cooking may open better avenues for growth during the forecast period since desiccated coconut is naturally gluten-free and grain-free while being nutritionally rich. This makes it a preferred choice amongst people who refrain from consuming products with high amounts of gluten.

Desiccated Coconut Powder Market: Challenges

Quality control and food safety may derail the growth momentum

Several factors can impact the global sales volume and maintaining quality standards and ensuring food safety during the production process can be challenging. Consistent hygiene practices, the performance of the chosen drying system, and the prevention of contaminations are some of the leading reasons that need careful focus to ensure that the product quality is the same throughout the production process.

Desiccated Coconut Powder Market: Segmentation

The global desiccated coconut powder market is segmented based on application, end-user, distribution channel, and region.

Based on application, the global market segments are dairy products, bakery, frozen desserts, confectionery, and others. The industry amassed the highest growth in the bakery segment where it is used during the production of several forms of baked items including cakes, cookies, pastries, muffins, bread, and other goods. The rich coconut flavor along with its smooth texture enhances the overall appearance and taste of baked products which ultimately impact the popularity and consumption of the products. In dairy products applications, desiccated coconut powder is used to improve the nutrition aspect of the final product. For instance, it is applied in the product of yogurt-based desserts such as coconut-flavored yogurts, yogurt parfaits, and yogurt bars. Additionally, it is also added to ice-creams and some forms of frozen desserts. Between 2021 and 2022, India’s coconut product rate increased by 31.45% as reported by the Indian Brand Equity Foundation.

Based on end-user, the desiccated coconut powder industry divisions are food service industry, household, and food & beverage industry.

Based on distribution channel, the global market segments are indirect and direct. The industry witnessed the highest growth in the indirect segment which includes intermediaries such as wholesalers, distributors, and retailers. In this approach, manufacturers of desiccated coconut powder sell their products to retailers including supermarkets, grocery stores, and specialty food stores along with online retail channels. They are responsible for selling the products directly to the consumers.

Most people buy food items from retail shops since in such cases, they have access to a better range of options along with other advantages such as discounts, credits, and more incentives. Direct channel involves the product being sold from the manufacturer to the consumer and does not require the assistance of intermediaries. Farmer’s market is a popular method of direct sales. In the financial year 2022, DMart, India’s largest supermarket retail chain, clocked in net revenue of INR 1.6 crore every day.

Recent Developments:

• In February 2022, Riflex Industries Pvt Ltd, a pioneer in the production of organic desiccated coconut products, established in 2009 and operating from the Andaman & Nicobar Islands of India, announced the launch of COCO BLAIR. It is a new brand with the sole aim to focus on the development of value-added and innovative coconut products. This move is expected to create several job opportunities in the region
• In November 2021, International Trade Centre (ITC) and the International Coconut Community (ICC), in a joint effort, organized the Coconut Desiccated Powder, Grated Frozen Coconut & Coconut Flour webinar. The move was an extension of the Memorandum of Understanding (MoU) signed between ITC and ICC which enables mechanisms development for the production and distribution of coconut products

Desiccated Coconut Powder Market: Report Scope

Desiccated Coconut Powder Market: Regional Analysis

Asia-Pacific to hold its dominance during forecast period

The global desiccated coconut powder market is expected to witness the highest growth in Asia-Pacific with countries such as India, Indonesia, Sri Lanka, Thailand, and the Philippines holding dominance over the majority of the regional share.

The high production rate of coconut in these territories is the main reason for the higher CAGR in Asia-Pacific. India is one of the largest producers and exporters of coconut and the products derived from it. In 2022, India exported coconuts worth more than USD 393 million and this registered an export growth of nearly 41% from the previous year.

The region is a rich producer of coconut and the Indian government is expected to expand its initiatives toward an improved production and exports rate.

Furthermore, desiccated coconut powder is a popular choice for several culinary items across these regions which indicated high home consumption levels as well. Latin America has a substantial coconut cultivation base, with countries like Brazil, Mexico, and the Dominican Republic being major producers.

Desiccated Coconut Powder Market: Competitive Analysis

The global desiccated coconut powder market is led by players like:

• Marudhar Foods Pvt. Ltd.
• Primex Coco Products Inc.
• Royce Food Corporation
• Celebes Coconut Corporation
• Meghna Group of Industries
• Pacific Eastern Coconut Utama
• Sri Lanka Export Development Board
• Rasaku
• Adamjee Lukmanjee & Sons Pvt. Ltd.
• Cocoguru Coconut Industries Pvt. Ltd.
• PT Global Coconut
• Goya Foods Inc.
• Sun Bio Naturals India Pvt. Ltd.
• Q.B.B. Pure Ghee
• QRS Retail Ltd.
• ZICO Beverages LLC
• P.T. Grand Multi Chemicals
• Santhome Foods
• Primrose's Kitchen
• Farmvilla Food Industries Pvt. Ltd.
• Nature's Charm
• Trader Joe's.

The global desiccated coconut powder market is segmented as follows:

By Application

• Dairy Products
• Bakery
• Frozen Dessert
• Confectionary
• Others

By End-User

• Food Service Industry
• Household
• Food & Beverage Industry

By Distribution Channel

• Indirect
• Direct

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of The Middle East & Africa