Coconut Oil Market

Coconut Oil Market Outlook (2022-2032)

Worldwide sales of coconut oil are forecasted to increase at a CAGR of 5.2% from 2022 to 2032. Currently, the global coconut oil market is valued at US$ 5.7 billion and is anticipated to reach a market size of US$ 9.5 billion by the end of 2032.

Coconut oil is a type of edible oil derived from the meat or kernel of mature coconuts. It is widely used in cosmetics, industrial, and food products. Since coconut oil is high in saturated fats, it is resistant to oxidation and spoilage. This gives it long shelf life, making it perfect for use in tropical conditions.

Coconut oil is extensively used as an ingredient in a variety of industries, including cosmetics, food and beverages, pharmaceuticals, and personal care. With the constant growth of these end-use sectors, the demand for coconut oil has increased in recent years. Furthermore, the growing popularity of plant-based personal care and cosmetics is hastening the manufacturing and processing of coconut oil in major coconut-producing nations.

Numerous coconut associations, including the Indonesian Coconut Processing Industry Association, the Virgin Coconut Oil Producers Association (VCOPA), the International Coconut Community, and the Coconut Development Board, have been founded in several nations to oversee industry activities. These organizations are mainly responsible for supervising coconut export, trade, processing, and cultivation throughout their respective countries.

• For example, in India, the Coconut Development Board (CDB) is a statutory entity set up by the Government of India and the Ministry of Agriculture to promote the coconut oil output.

However, the global coconut oil market is expected to experience a few challenges during the forecast period. The war between Russia and Ukraine has had a substantial impact on the trading of coconut oil.

• As per the market analysis, Russia was the 34th biggest exporter of coconut oil in the world in 2020, exporting US$ 3.5 million in coconut oil. In contrast, because of the war between these two nations, in 2022, Russia’s exports were valued at US$ 634 thousand and imports were US$ 18.4 million, resulting in a negative balance of trade.

Many coconut oil manufacturers are prudently abandoning the conventional business model and capitalizing on evolving statistics. The goal of this change is to boost productivity and focus on great opportunities. With the growing worldwide craze for high-value items such as virgin coconut oil as a functional cooking oil, producers are ramping up production to achieve large profit margins.

Furthermore, with the emergence of the eco-innovation trend, major market players are rapidly embracing sustainable ways to create high-quality products that are in sync with environmental wellness.

Report Attributes	Details
Coconut Oil Market Size in 2022	US$ 5.7 Billion
Projected Market Value by 2032	US$ 9.5 Billion
Global Market Growth Rate (2022-2032)	5.2% CAGR
Asia Pacific Market Growth Rate (2022-2032)	8.5%
Virgin Coconut Oil Growth Rate (2022-2032)	7%
Key Companies Profiled	Ruchi Soya Industries American Vegetable Oil Inc Adani Wilmar Adams Group Inc. Cargill Inc. Associated British Foods Archer Daniels Midland Company Bunge Limited

What Aspects are Driving Worldwide Coconut Oil Sales?

“High Usage of Coconut oil in Personal Care & Cosmetic Products”

Coconut oil has been viewed as a healthy element for beauty improvement by communities worldwide, particularly in coastal and tropical countries, influencing manufacturers to employ coconut oil as a basic component in personal care and cosmetic products.

Cosmetics enriched with virgin coconut oil are generally accepted, as consumers nowadays want vegan and organic hair care and skincare products. Consequently, numerous personal care firms are substituting mineral oil in their personal care and cosmetics product lines with coconut oil, as coconut oil contains triglycerides and steady saturated medium-chain fatty acids (C10 capric acid, C8 caprylic acid, and lauric acid).

Furthermore, the antibacterial characteristics of lauric acid in coconut oil have made it a popular ingredient in shampoos, lip balms, moisturizers, and soaps in the past few years. Coconut oil is an excellent natural moisturizer. It holds moisture and makes lips soft. As a result, producers are using coconut oil in their lip care items.

• For example, REM beauty, founded by American singer Ariana Grande, released a new product named Essential Drip Lip Oil in June 2022, which contains coconut oil for glossy shine and lip hydration.

Such aspects are anticipated to raise the sales of coconut oil during the forecast period.

“Emerging Use of Coconut Oil as Potential Biofuel”

The fuel crisis and growing societal worries about the depletion of nonrenewable energy resources have prompted a search for alternate solutions. Several initiatives have been launched to generate energy from alternate sources such as solar and biological sources.

Biofuels are in high demand due to their environmentally friendly nature. Coconut oil blends produce energy that is highly equivalent to conventional diesel, and its exhaust includes significantly fewer dangerous emissions than normal diesel exhaust.

In addition, due to its lower local cost, coconut oil is widely employed in transportation and electricity generation in Pacific countries, boosting demand for coconut oil.

Country-wise Insights

How is Japan Aiding Market Growth in Asia Pacific?

The Asia Pacific market is projected to grow at a CAGR of 8.5% during the forecast period. Japan and South Korea are likely to witness considerable growth during the forecast period.

The Japanese government is encouraging the development of coconut oil processing capacity to meet growing demands in a variety of application industries.

• For example, the Japanese government provided US$ 66,658 in funding under the Grant Assistance for Grassroots Human Security Projects (GGP) in February 2021 to establish coconut oil-producing facilities in the Mullaitivu area.

Why is the United States a Prominent Market for Coconut Oil Producers?

The North American market is likely to witness substantial growth during the forecast period. The United States is North America's largest market for coconut oil.

The country has a significant Hispanic population, who typically utilize coconut oil in cooking. Furthermore, the health advantages of coconut oil are becoming more popular in the country. The availability of virgin and organic coconut oils is also propelling the market in the United States.

What is Germany’s Position in the European Market?

Demand for coconut oil in Europe has grown considerably in recent years as consumer awareness of better diets has risen. Moreover, its usage in a variety of industrial items such as food and beverages, pharmaceuticals, and cosmetics is expanding.

In addition, the health and wellness trend in European countries such as Germany, France, and Spain is expected to raise the sales of coconut oil in the region.

Germany is projected to make substantial contributions to the regional market during the forecast period. This is due to the growing usage of coconut oil to manufacture healthy bakery and ready-to-eat products.

Category-wise Insights

What Makes Virgin Coconut Oil the Most Popular Type?

Global sales of virgin coconut oil are projected to climb at a CAGR of 7% during the forecast period. Virgin coconut oil (VCO) is produced from fresh coconut meat or derivatives that have been naturally processed without the use of chemicals or additions. Due to its low level of peroxide value and free fatty acids, it is the purest type of coconut oil, carrying natural vitamin E and without undergoing any atmospheric or hydrolytic oxidation.

Increasing consumer understanding of the health advantages of virgin coconut oil is expected to raise the sales of the product during the forecast period. Moreover, the many health advantages of virgin coconut oil have led to its extensive use in pharmaceutical items and medical consumables.

Virgin coconut oil is high in healthy fatty acids, antioxidants, minerals, and vitamins. The product type is growing in popularity as a nutraceutical ingredient and among health-fanatic consumers worldwide.

Competitive Landscape

The worldwide market for coconut oil is extremely competitive, with prominent players pursuing various strategies like capacity growth, product development, and investment in sophisticated processing technologies. In addition, market players are concentrating on mergers and acquisitions to expand their presence in the global market.

• Cargill Inc., a major coconut oil manufacturer, absorbed the Dalmia olive oil business in June 2022 to speed up new product releases. Furthermore, Cargill Inc. invested around USD 17.5 million in the Izegem edible vegetable oil refinery to increase its capacity.
• Treelife, a Cotabato-based producer of organic products, extended its business by investing in the manufacturing of virgin coconut oil (VCO) in August 2021.
• GVK investments, makers of AVA virgin coconut oil, expanded their processing capacity and product range in May 2021.

Key Segments of Coconut Oil Industry Research

• By Product Type:

  • Processed Coconut Oil
  • Virgin Coconut Oil

• By End User:

  • Foodservice
  • Food Processors
  • Retail

• By Distribution Channel:

  • Modern Trade
  • Franchise Outlets
  • Specialty Stores
  • Online

• By Region:

  • North America
  • Latin America
  • Europe
  • APAC
  • MEA