Coconut milk is a liquid obtained by manual or mechanical extraction of coconut meat, with or without water. The composition of coconut milk depends on water used during extraction. Water also affects the fat content and moisture of coconut milk. Coconut milk is slightly acidic in nature with a pH of 6. Coconut milk contains two types of protein, albumins and globulins in the range of 6 to 8%. Spray drying method is used by manufacturers to dry coconut milk into powdered form as it increases its shelf life and also becomes easy for transportation. On an average, one coconut yields 60 to 100 grams of coconut powder depending on its size.

Market Dynamics

Diverse applications of coconut milk and high availability of coconut are the key factors driving growth of the global coconut milk market. Coconut milk is a rich source of protein such as prolamin, glutein, albumin, and globulin. Coconut milk is associated with various health benefits such as weight loss, boosts immune system, improves digestion, prevents acne, promotes hair growth, and treats sunburn as well as reduces the risk of diabetes and Alzheimer’s disease. Coconut milk is added to various dishes and cuisines and has diverse usage in food and beverage industry such as ice cream, yogurt, sauces, and beverages.
High availability of coconut will create growth opportunities for manufacturers and will fuel growth of global coconut milk market. According to statistics of Food and Agricultural Organization (FAO), global production of coconut was 58.4 million tons in 2016 and grew at the rate of 1.0% from 2011.
However, consumers should take measures before consuming coconut milk as it contains high calories, abundant saturated fat, and often causes allergies. Moreover, popular substitutes to coconut milk such as spiced milk, soy milk, and yoghurt might be a hindrance in growth of the market. Consumption of coconut milk may increase blood fat levels, which can increase the risk of heart disease. Presence of saturated fat will increase cholesterol level, which results in weight gain and constipation. Other factors such high cost of coconut milk as compared to dairy milk and increasing health risks associated with consumption of coconut milk are expected to hamper growth of the market.

Market Outlook

Among form, liquid coconut milk segment accounted for the highest market share in the coconut milk market in 2017. This is due to its wide applications in food and beverages industry, it is preferred to be used in a liquid form. Household consumers prefer liquid coconut milk due to its wide culinary usage such as to prepare curries, sauces and desserts.
Among applications, food & beverages segment was dominant in the market in 2017. There are various applications of coconut milk such as ice creams, paddings, smoothies, cream, and as a substitute for dairy milk. This segment is projected to hold the dominant position in the market over the forecast period.
Asia Pacific held the largest market share in the global coconut milk market in 2017, and is projected to be the dominant region over the forecast period, owing to abundant production of coconut and widespread uses of coconut milk in various cuisines is popular in Asian countries. For instance, according to Food and Agricultural Organization (FAO), Asia accounted for 82.6% of the global coconut production in 2016.

Key players in Global Coconut Milk Market

Key players operating in the global coconut milk market include Goya Foods, Pureharvest, McCormick, WhiteWave Foods, and Theppadungporn Coconut Co. Ltd. Some other coconut milk manufacturers are Edward & Sons, Chi, Ducoco, Zurtle Mountain, Thai Agri Foods, iTi Tropicals, and Pacific Foods.
Key market players are launching new types of coconut milk-based products in order to meet rising demand from consumers. For instance, in February 2018, Nestle launched a new beverage based on coconut milk, Nespray Coco-Up.

Key Developments

In 2015, Coconut Development Board (CDB) is a statutory body established under the Ministry of Agriculture, Government of India launched flavored coconut milk in pistachio, rose and chocolate flavors. This new product is a rich source of iron and copper.
In 2016, the Ceylon Biscuits Limited (CBL) launched new product which promoted by brand name ‘Sera’. Sera is a premium liquid coconut milk which is conveniently available in 180 ml UHT packs. The company was focusing on expanding its coconut milk business in the market.
In 2017, Vita coco launched dairy alternative a low-calorie and low-fat coconut milk in the market. The new product was aimed to fulfill the demand of health conscious customers. Coconut milk light is made from a blend of coconut water and coconut cream and has 20 calories per 100ml.
In 2018, the Danone launched coconut milk-based oikos yogurt in the market and company has plan to launched plant-based yogurt product for kids in 2019 to expand its product portfolio in the beverage market.
In March 2019, Koko Dairy Free appointed Southpaw as its lead creative communication agency. The company has appointed a retained creative agency as it prepares for major marketing investment focused on rising consumer interest in coconut milk than the dairy-free alternatives.

Global Coconut Milk Market Taxonomy

On the basis of form, the global coconut milk market is segmented into: