Coconut Oil Market Size, Share, Industry Analysis, Trends, Growth, 2030

Coconut Oil Industry Prospective:

The global coconut oil market size was worth around USD 5.98 billion in 2022 and is predicted to grow to around USD 10.65 billion by 2030 with a compound annual growth rate (CAGR) of roughly 7.31% between 2023 and 2030.

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Coconut Oil Market: Overview

Coconut oil is also known as coconut fat. It is derived from milk, meat, and kernels of the fruit originating on coconut palm trees. Coconut oil is edible and can be used to prepare several food items. Coconut oil is highly versatile since it offers multiple end-user applications across industries. Research indicates that coconut oil is a rich source of medium-chain triglycerides (MCTs). Some most common applications of coconut oil include the food & beverages (F&B) industry, the cosmetics & personal care sector, and the production of cleaning agents such as detergents.

At warmer temperatures, coconut oil appears as a colorless liquid but if the temperature falls below 25 °C, it may turn into a white solid structure. Coconut oil is produced using either a dry or wet process. Coconut oil production does not require sophisticated technology especially when produced at home for personal use. However, commercial production of coconut oil may necessitate higher investments and the use of enhanced technologies. There are doubts over the health implications of consuming coconut oil which is one of the major concerns for the companies operating in the coconut oil industry.

Key Insights:

• As per the analysis shared by our research analyst, the global coconut oil market is estimated to grow annually at a CAGR of around 7.31% over the forecast period (2023-2030)
• In terms of revenue, the global coconut oil market size was valued at around USD 5.98 billion in 2022 and is projected to reach USD 10.65 billion, by 2030.
• The coconut oil market is projected to grow at a significant rate due to the increasing use of coconut oil in the personal care and cosmetic space
• Based on source segmentation, dry coconut was predicted to show maximum market share in the year 2022
• Based on product type segmentation, virgin was the leading segment in 2022
• On the basis of region, Asia-Pacific was the leading revenue generator in 2022

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Coconut Oil Market: Growth Drivers

Increasing use of coconut oil in the personal care and cosmetic space to drive market growth

The global coconut oil market is projected to grow owing to its increasing use in the personal care and cosmetics sectors. Coconut oil is highly popular in Asian countries as hair oil since it is known to keep hair strong and long. It has been used as hair oil for centuries in Southeast Asian countries such as Sri Lanka, India, and others. The high confidence of the local population on the effects of coconut oil has resulted in the commercialization of the products as several international and regional producers of personal care products are working on leveraging the advantages of coconut fat or oil. Multiple research studies have helped consumers understand that coconut oil exhibits excellent ski-nourishing qualities. It also facilitates lipid production while reducing water loss. Studies also indicate that the reason for coconut oil being considered good for hair growth is its ability to penetrate deep into the roots of hair thus providing comprehensive care.

Since coconut oil is highly rich in lauric acid, hair oil made of coconut oil is becoming increasingly popular. Other hair benefits include protection against damage and easy untangling when coconut oil is applied. The growing number of consumers across the globe is likely to drive demand for coconut oil. Consumer awareness has been on the rise along with the rapidly surging population and the growing trend of personal grooming across genders.

Growing cultivation of coconut globally to deliver higher market revenue

The production of coconut oil has increased in the last few years. Countries producing coconuts are now investing higher in superior and high-quality coconuts since the fruit itself has several applications apart from producing coconut oil. In December 2023, Indonesia was reported to be working on initiatives that promote a sustainable coconut industry while simultaneously preserving the ecosystem and the environment. It could impact the global coconut oil market as well.

Coconut Oil Market: Restraints

Concerns over the health implications of coconut oil in food and beverages may restrict market growth

The global coconut oil industry will face growth restrictions mainly because of the growing concerns over health implications related to the presence of coconut oil in food and beverages. Several international healthcare organizations have spoken against consuming coconut oil in any form since it contains high levels of saturated fat. Studies indicate that overconsumption of coconut oil can lead to an increase in bad cholesterol levels. Some of the organizations against the use of coconut oil in food include the World Health Organization (WHO), the British Nutrition Foundation, and the American Dietician Foundation.

Coconut Oil Market: Opportunities

Growing demand for virgin coconut oil may deliver exceptional expansion opportunities

The global coconut oil market holds tremendous growth opportunities in the form of growing demand for virgin coconut oil. Multiple studies conclude that virgin coconut oil can act as an essential tool required for weight loss. It is known to burn abdominal fat. Furthermore, since the fatty acid levels are high in coconut oil, it aids reduction in overall appetite. Owing to these factors, market players have created more awareness among consumers about the benefits of virgin coconut oil.

In February 2022, Dabur India Limited, India’s leading provider of natural and ayurvedic health care products, launched a range of virgin coconut oil. The product does not contain any artificial chemicals and it is 100% natural with multiple applications. It can be either used as a massage oil or for cooking purposes.

In September 2023, a farmer’s collective brand in India under the name Kannadi Karshaka Kootayma launched a coconut oil rich in herbs. The company intends to use the entire coconut fruit with minimal to zero wastage by converting the remains of the fruit after draining the water and milk into oil form.

Coconut Oil Market: Challenges

Extensive presence of alternatives to coconut oil may challenge the market expansion trend

The global coconut oil industry will be challenged by the presence and popularity of several other alternatives in the industry. For instance, the food oil sector is full of multiple options including more healthier alternatives such as olive oil and sesame oil. On the other hand, the personal care and cosmetics industry also has access to other chemical and natural alternatives thus relying scarcely on coconut oil for achieving product texture and effects.

Coconut Oil Market: Segmentation

The global coconut oil market is segmented based on source, nature, product type, application, and region.

Based on source, the global market segments are wet coconut and dry coconut. In 2022, the highest growth was observed in the dry coconut segment. The leading reason for higher segmental growth is the extensive demand for RBD and virgin coconut oil. The health and personal care benefits associated with dry coconut are the essential growth propellers. It is known to impact oral health, and hair quality, and also has antimicrobial benefits. 1 tablespoon of coconut oil contains around 120 calories.

Based on nature, the global coconut oil industry is divided into organic and conventional.

Based on product type, the global market is divided into virgin, refined, bleached & deodorized (RBD), and crude. In 2022, the highest demand was registered in virgin coconut oil followed by the RBD version. When compared to regular oil, the virgin variant is known to exhibit better taste and aroma. It is produced from coconut milk and hence is preferred in recreational centers such as massage and spa units for relaxation. Furthermore, it also promotes weight loss, as per certain reports. 7 kilograms of dehusked coconuts are required to produce 1 liter of oil.

Based on application, the global market is divided into cosmetics & personal care, pharmaceuticals, nutritional products, food & beverages, and others.

Coconut Oil Market: Report Scope

Coconut Oil Market: Regional Analysis

Asia-Pacific to continue dominating market revenue during the projection period

The global coconut oil market will be driven by Asia-Pacific during the forecast period. Coconut oil is an integral part of several cultures in the Asian continent. It has been used for centuries as a cooking oil as well as for personal care reasons. In many parts of Southeast Asian countries, coconut oil is produced at home due to the abundant availability of coconuts. India, for instance, is the leading producer and exporter of coconuts across the globe followed by Indonesia. Between 2021 and 2022, more than 32% of the global coconut production was contributed by India. Additionally, the popularity of ayurvedic and natural haircare products in India remains unmatched.

In December 2021, the Kerala State Coconut Development Corporation (KSCDC) of India announced the launch of Coco Royal. It is a new brand of coconut oil for cooking purposes. However, the country is also facing certain setbacks as regional coconut producers from Tamil Nadu State in India have initiated an indefinite hunger strike. Europe holds high growth potential since the region is witnessing an increase in demand for organic products. In May 2023, Waitrose announced the launch of the UK’s first country-specific organic coconut oil.

Coconut Oil Market: Competitive Analysis

The global coconut oil market is led by players like:

• Barlean's
• Nutiva
• Tropical Traditions
• Nature's Way
• NOW Foods
• Carrington Farms
• Organic Gemini
• Wilderness Family Naturals
• Dr. Bronner's
• Vita Coco
• Spectrum Naturals
• Jarrow Formulas
• Garden of Life
• Swanson Health Products
• Nature's Best

The global coconut oil market is segmented as follows:

By Source

• Wet Coconut
• Dry Coconut

By Nature

• Organic
• Conventional

By Product Type

• Virgin
• Refined, Bleached & Deodorized (RBD)
• Crude

By Application

• Cosmetics & Personal Care
• Pharmaceuticals
• Nutritional Products
• Food & Beverages
• Others

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 Middle East & Africa