COCONUT MILK AND CREAM MARKET ANALYSIS

The global coconut milk and cream market is projected to reach around US$ 5.42 Billion by 2030, exhibiting a CAGR of 8.2% during the forecast period (2023-2030).

Global Coconut Milk and Cream Market: Drivers

• Rising preference for plant-based proteins among consumers: Shifting consumer preferences from animal-based proteins to plant-based proteins is primarily fuelling the growth of the global coconut milk and cream market. So, the growing number of vegetarians is augmenting the market growth has this food companies are introducing a diverse range of coconut milk and creamers by varying their fat content and flavor and even launching easy-to-carry package formats to boost convenience.
• Growing prevalence of lactose intolerance in the population: Increasing incidence of lactose intolerance among the population is also driving the demand for plant-based proteins. According to the National Institute of Diabetes and Digestive and Kidney Diseases, about 68% of the world's population has lactose mal absorption. However, lactose intolerance rates vary widely depending on ethnicity, with, as few as 5% of Northern Europeans and as many as, 90% of East Asians having lactose intolerance, as stated by the Canadian Society of Intestinal Research.

Global Coconut Milk and Cream Market: Restraints

• Threat of substitutes available in the market: The availability of alternatives, such as soy milk, a direct alternative to coconut milk is hindering the market growth. It is also plant-based and has a slightly lower fat content than coconut milk. In most recipes, one can swap it in a 1:1 ratio. The presence of coconut cream alternatives is again restricting the market growth. Heavy cream from cow’s milk is produced by scraping fat from fresh milk and is mainly common in high-fat foods such as creamy soups, sauces, and ice cream. It is much higher in fat than coconut cream and can replace it in equal quantities in most recipes. Counterbalance: With the presence of many alternatives of coconut milk and cream available in the market, coconut milk carry lot of health benefits. It aids in stimulating weight loss (a main reason of worry in the present scenario), build of fat, and in lowering the cholesterol level. Coconut milk is the liquid present inside a coconut, which is often added in many sweets and savory dishes, by acting as an alternative to dairy milk. Reports have stated that adding coconut milk in high protein diets can reduce abdominal fat, weight gain, food intake, cholesterol, and triglycerides.

 Global Coconut Milk and Cream Market: Opportunity

• Increase preference for low calorie products: Key players are introducing low-fat coconut milk and cream products in order to meet the growing demand for low-calorie food products among health conscious consumers. Low-fat conventional dairy has witnessed significant popularity by providing an attractive option to the  low-fat diet concerned consumers. Similarly, low-fat coconut milk and cream products are experiencing high demand among the food manufacturers which produces low in fats and calories.

Global Coconut Milk and Cream Market: Trends

• Rising consumption of bakery products: Increasing consumption of bakery products due to globalization is a major emerging trend in the market. Coconut milk is widely used in the preparation of bakery, confectionery, dairy products, frozen desserts, and other applications. Growing consumer spending on healthy food products, due to increasing disposable income, is again fostering the market growth. Additionally, the growing health and wellness trend is also boosting the market growth.

Global Coconut Milk and Cream Market: Key Developments  

• In March 2021, Danone, a leading food company, announced the launch of Alpro, its second dairy-free brand in China after Vega, to tap the emerging plant-based food market. The brand offers plant-based yogurt, desserts, drinks, and cream.
• In May 2021, Axelum, a Philippines-based fully integrated manufacturer and exporter of coconut based products, joined with local e-commerce stores like Shopee and Lazada and another online coconut store. These stores feature products like coconut milk powder, coconut cream and milk, and coconut cooking oil.
• In December 2021, Philippines-based Machcri launched it’s first-ever product under its brand, Machcri Coconut Cream, which is based on RSAI Coconut Cream 32% Fat
• In August 2022, Met Foods, a producer of plant-based products, Acquired the Cocos Organic brand, and launched its first organic coconut milk yogurt tubes, specially designed for children aged six months and older. The new offering comes in the strawberry and banana flavors. This product is made from organic coconut milk, fortified with live bacteria, including Bifidobacterium BB-12, and flavored with natural strawberries and bananas.

Global Coconut Milk and Cream Market: Regional Analysis

Global Coconut Milk and Cream Market generates the majority of revenue, with India, Japan, and Indonesia being the primary contributors. The coconut sector is a key component of the Indian economy and the government has expressed a strong desire to bolster the coconut sector and its applications in a variety of industries. In Japan, the consumption of dairy products is highly concentrated among native consumers, with over 90% of them being lactose intolerant. As a result, food manufacturing companies in the country are increasingly turning to alternative dairy ingredients, such as coconut cream and dairy milk, to meet this demand.

Figure no 1. Global Coconut Milk and Cream Market Share (%), By Region, 2022

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Regionally, Asia Pacific dominated the global coconut milk and cream market with 51% market share in terms of revenue, in 2022, followed by North America and Europe, respectively.

Global Coconut Milk and Cream Market: Segmentation

Global Coconut Milk and Cream Market is segmented on the basis of category, application, and region. Furthermore, it is divided on the basis of category organic and conventional, on the basis of application Processed Food, Retail/Packaged Coconut Milk and Coconut Cream, Foodservice and on the basis of region North America, Latin America, Asia Pacific, Europe and Middle East and Africa.

Figure no 2. Global Coconut Milk and Cream Market Share (%), By Category, 2022

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On the basis of category, in 2022, the conventional segment accounted for the largest market share of 70% in terms of value, followed by the organic segment.

Global Coconut Milk and Cream Market: Impact of Coronavirus (COVID-19) Pandemic

Due to the global pandemic, there has been a significant increase in the demand for functional milk and nutraceuticals. In response to the pandemic, a number of frontline workers, such as medical professionals, sanitation workers, and sweepers, have been actively working to contain the virus. Government agencies Such as, FDA have urged citizens to adhere to a nutritious diet, in order to combat the disease. This is likely to result in an increase in the demand for coconut milk, which is essential for the health and proper functioning of the human body. Coconut milk plays a vital role in the growth and regeneration of human cells, as well as in the maintenance of healthy muscle and tissue structures. Additionally, plant protein has been found to be beneficial in weight loss and in the maintenance of the muscle and tissue health.   

Global Coconut Milk and Cream Market: Key Companies

The key companies operating in  Golbal coconut milk and cream market are McCormick & Company Inc., Danone SA, Sambu Group, Adamjee Lukmanjee & Sons (Pvt.) Ltd, Cardinal Agri Products Inc., Petrow Food Group, Axelum Resources Corp., Kapar Coconut Industries Sdn Bhd, Primex Group of Companies, Only Earth, Stancodex Sdn Bhd, Greenville Agro Corporation, Celebes Coconut Corporation, M&S Food Industries, Goya Foods Inc., and Roxas Sigma Agriventures Inc.

*Definition: Coconut milk and cream are popular among vegans, vegetarians, and those who have dairy allergies or intolerances. They are also popular in drinks and sauces, as they are naturally sweet and smooth. Coconut cream is made by cooking sweetened coconut cream. Basically, four parts of shredded coconut are simmered in one part water, until the mixture thickens. Once it has thickened, it's used in desserts, pastries, and mixed drinks.