COCONUT WRAPS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The global Coconut Wraps market size was valued at US$ 1.65 billion in 2023 and is expected to reach US$ 3.24 billion by 2030, grow at a compound annual growth rate (CAGR) of 10.1% from 2023 to 2030.

Coconut wraps are made from coconut meat and can be used as an alternative to bread and tortillas. The wraps are gluten-free, high in fiber, low in carbohydrates, and contain healthy fats. The rising popularity of plant-based and gluten-free diets is driving demand for coconut wraps. The Coconut Wraps Market is segmented by product type, distribution channel, end-use, and region. By product type, the wraps segment held the largest share of the market in 2022. Wraps are the most popular coconut wrap product due to their versatility and ease of use.

Coconut Wraps Market Regional Insights

• North America is expected to be the largest market for Coconut Wraps Market during the forecast period, accounting for over 25.1% of the market share in 2022. The growth of the market in North America is attributed to the rising adoption of plant-based diets and growing health consciousness among consumers.
• The Asia Pacific market is expected to be the second-largest market for Coconut Wraps Market, accounting for over 35.2% of the market share in 2022. The growth of the market in is attributed to increasing disposable incomes and expanding retail sector in emerging economies.
• The Europe market is expected to be the fastest-growing market for Coconut Wraps Market, with a CAGR of over 16.5% during the forecast period. The growth of the market in Europe is attributed to the high demand for gluten-free and vegan food products.

Figure 1. Global Coconut Wraps Market Share (%), by Region, 2023

Coconut Wraps Market Drivers:

• Increasing health consciousness among consumers: The rising focus on healthy lifestyles and wellness has been a key factor driving the demand for coconut wraps. Consumers are increasingly avoiding food products with artificial additives and preservatives. They are looking for natural, minimally processed foods that offer nutritional benefits. Coconut wraps fit this consumer demand as they are free from gluten, grains, and dairy. The high fiber and nutrient content of coconut wraps makes them a healthier alternative to traditional wheat-based tortillas. The health benefits of coconut wraps including antiviral, antifungal, and antibacterial properties are also attracting health-conscious consumers.
• Growth in plant-based and vegan diets: The growing popularity of plant-based and vegan diets has contributed significantly to the growth of the coconut wraps market. Coconut wraps provide the perfect solution for vegans looking to replace bread and tortillas. With rising ethical concerns related to animal products, many consumers are transitioning to veganism. This is creating a massive market opportunity for plant-based alternatives including coconut wraps. Leading food brands are innovating with coconut wraps to cater to the nutritional needs of the vegan demographic. The eggless, dairy-free, and gluten-free attributes of coconut wraps make them a preferred choice for the vegan population.
• Increase in cases of gluten intolerance and celiac disease: Coconut wraps address the nutritional requirements of consumers suffering from medical conditions like gluten intolerance and celiac disease. The number of people with gluten and wheat allergies has risen substantially in recent years. This has fueled the demand for gluten-free foods such as coconut wraps. Coconut wraps provide gluten-intolerant consumers a healthy, tasty, and convenient alternative to regular wheat-based wraps without compromising on texture or nutrition. Leading brands are marketing their coconut wraps as a superior gluten-free solution which is attracting consumers looking for gluten-free options.
• Innovation in flavors and varieties: Manufacturers are innovating with exciting flavors and varieties of coconut wraps to attract new consumers. From turmeric, black pepper, activated charcoal to unique flavors like beet, spinach, and sweet potato, brands are experimenting with innovative coconut wrap varieties. This provides consumers more choice along with the health benefits of coconut wraps. The launch of ready-to-eat, pre-seasoned coconut wraps is also fueling market growth as it offers convenience to time-pressed consumers. The innovations in flavors, colors, and packaging are expected to continue driving the coconut wraps market.

Coconut Wraps Market Opportunities:

• Emerging markets represent untapped growth potential: Emerging economies in Asia, Africa, and South America offer massive untapped potential for coconut wrap products. Rising incomes, growing middle-class population, and increasing health awareness in these markets is presenting an attractive opportunity for coconut wrap brands. Localization of flavors along with competitive pricing can help brands gain a foothold in high-potential emerging markets. Investments in distribution infrastructure and strategic partnerships with local retailers can further help in increasing penetration and sales.
• Growing demand from food service industry: The growing health-consciousness among consumers is also reflecting in food service menus. Restaurant chains and cafes are looking to introduce healthier menu options to meet evolving consumer preferences. This presents a major opportunity for coconut wrap brands to market their products to the food service industry as a healthy bread alternative. Leading brands can potentially partner with restaurant chains and food delivery platforms to increase the availability of coconut wrap-based menu options for on-the-go consumption.
• Increasing adoption in households: Coconut wraps have long been restricted to diet-conscious individuals. However, the improving taste along with health benefits and convenience is leading to increasing household adoption of coconut wraps. Brands have an opportunity to position coconut wraps as an everyday alternate to sandwiches and breakfast wraps through the right pricing and packaging strategies. Bulk packs with longer shelf life can drive adoption for household consumption. Marketing the versatility of coconut wraps for a range of food applications can also accelerate household penetration.
• Rapid growth of online sales channels: The expansion of e-commerce and D2C channels has opened new sales avenues for coconut wrap brands. Online retail allows brands to easily target and market specialty products like coconut wraps to the intended health-conscious demographic. Social media and digital marketing campaigns further help create awareness and drive adoption. Direct-to-consumer (D2C) sales through a brand website provides more control over messaging while also gathering customer data. Coconut wrap brands can potentially leverage e-commerce channels to unlock access to new markets and customers.

Coconut Wraps Market Trends:

• Increasing demand for organic and non-GMO coconut wraps: There is a growing consumer demand for coconut wraps made from organic, non-GMO ingredients. Buyers are willing to pay a premium for organic coconut wraps sourced from ethical and sustainable farms. To cater to this demand, brands are investing in procuring organic certifications for both ingredients and final products. The non-GMO claim is also being highlighted prominently to target consumers apprehensive about genetically modified crops. Transparent product information and ethical sourcing narratives are becoming key components of branding in this market.
• Focus on innovative and sustainable packaging: In line with growing environmental consciousness among buyers, brands are focusing on innovative packaging solutions that have a lower carbon footprint. For example, some brands have introduced biodegradable cellulose wraps made from wood pulp. Compostable pouches made from plant-based sources are also gaining popularity. Along with sustainability, brands are improvising packaging with features like zip-lock pouches for better convenience and increased shelf life. The attention on packaging is only expected to intensify as brands try to align with eco-conscious consumer preferences.
• Expanding distribution through private label offerings: A promising route to mainstream market penetration for coconut wrap brands is through private label offerings. Retail chains like Whole Foods, Sprouts, and Krogers have started stocking coconut wraps under their own private labels. This allows the product to reach a wider audience beyond the niche health-food segment. Experts predict private label penetration will continue to rise as large chains aim to enhance their portfolio of specialty and healthy offerings. Coconut wrap makers can potentially leverage this trend to scale up their production volumes and distribution footprint.
• Increasing use of coconut wraps outside food industry: Coconut wraps are gaining adoption across industries beyond food like beauty and cosmetics. Sheet masks infused with coconut provide hydration benefits for skin and hair. Coconut wraps are also being used to create biodegradable disposable headbands for facials. The anti-microbial properties lend coconut wraps for innovative use cases like yoga mats, fruit/vegetable wraps, and contraceptive products. Coconut wrap brands have an opportunity to expand their addressable market by exploring and marketing new application areas beyond conventional food usage.

Coconut Wraps Market Restraints:

• Premium pricing resulting in limited affordability: Despite strong growth prospects, the relatively high prices of coconut wraps as compared to wheat-based wraps is limiting affordability and adoption among value-conscious consumers. The premium pricing stems from high raw material costs as well as underdeveloped economies of scale. Many buyers are price-sensitive when trying new specialty food products like coconut wraps. Brands are struggling to bring down prices due to the nascency of the market and low bargaining power with suppliers. The affordability barrier created by premium prices needs to be addressed to drive mass market penetration.
• Manufacturing and supply chain challenges: Coconut wrap manufacturing can be complex due to the lack of an established market and uncertainties around optimal process design. For example, brands face technical challenges in achieving the right texture, taste, and shelf life. Scaling up production volumes also requires overcoming issues like standardization of recipes and packaging materials. Coconut being a tropical crop also poses sourcing risks due to vulnerability to adverse weather conditions. Building resilient and high-quality supply chains from farm to factory is vital for long-term success in this market.
• Low visibility and consumer awareness: Despite growing in popularity, coconut wraps are still a new concept for many consumers. The availability is also limited to select retail outlets, hampering visibility. Many consumers lack awareness about the benefits, convenient applications, and available product varieties of coconut wraps. Effective marketing and sampling strategies are critical for educating consumers and overcoming skepticism associated with trying new products. Consumer education is a key challenge that needs to be prioritized for taking coconut wraps mainstream.

Recent Developments

New product launches

• In September 2022, Cocobella launched a new line of coconut wraps made with extra virgin coconut oil. The wraps are available in three flavors - original, turmeric, and vanilla.
• In January 2022, Nature's Path Foods introduced new gluten-free coconut wraps as part of its Superfood Wraps line. The wraps contain fiber-rich coconut flour.
• In November 2021, Nutiva launched a new line of coconut wraps made with organic coconut flour. The wraps are certified organic, non-GMO, and vegan.

Acquisition and partnerships

• In October 2022, Taste Nirvana partnered with European distributor Sanduka to expand its coconut wraps distribution in the European market.
• In May 2022, LettUs Foods acquired a minority stake in The Coconut Company to secure steady supply of coconut-based ingredients.
• In March 2021, Coconut Merchant collaborated with Whole Foods Market to launch a new line of coconut wraps at Whole Foods stores across the US.

Figure 2. Global Coconut Wraps Market Share (%), by Category, 2023

Top companies in Coconut Wraps Market

• LettUs Foods
• Cocobella
• Crepini
• Coconut Bowls
• Nature's Path Foods
• Coconut Cartel
• Chefman
• Aum Kitchen
• Dang Foods
• COCO&CO
• Hello Coco
• Earnest Eats
• Three Babes Bakeshop
• Pure Wraps
• Taste Nirvana
• Coconut Merchant
• COCO Joy
• Nutiva
• Nua Naturals
• Edward & Sons

*Definition: The Coconut Wraps Market refers to the market for food wraps made from coconut flour, coconut meat, desiccated coconut, and other coconut-derived ingredients. Coconut wraps have gained popularity as a gluten-free, paleo, and vegan alternative to traditional wheat-based tortillas and sandwich wraps. The market has witnessed robust growth in recent years, driven by rising consumer demand for healthy, plant-based foods. Key products in the market include coconut flour wraps, coconut meat wraps, coconut milk wraps, and seasoned or flavored coconut wraps. The market is segmented by product type, distribution channel, end-use application, and region. It is driven by increasing cases of food allergies and intolerances, new product innovations, growing online retail distribution, and rising vegan population worldwide.

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