Coconut Milk Powder Market Analysis

Coconut flesh is highly nutritious and offers fibers, vitamins E, C, B1, B3, B5, and B6, and minerals such as iron, sodium, calcium, magnesium, selenium, and phosphorous. Furthermore, coconut products offer multiple health benefits such as improvement in cardiovascular health, reduction of digestive problems, and also aids in weight loss. Coconut water offers cardio-protective effect, boosts kidney health, aids in diabetes management, offers rehydrating effect post-exercise, and aids in maintaining blood pressure levels. Increasing health awareness, coupled with advantages of coconut products is driving growth of the global coconut milk powder market.

Global coconut milk powder market was valued at US$ 32.40 Mn in 2021 in terms of revenue, exhibiting a CAGR of 8.92 % during the forecast period (2022 to 2030).

Drivers

Increasing Preference for Plant-based Foods to Fuel the Market Growth

According to the Vegan Society, the U.K. is witnessing robust growth in the plant-based milk sector in Europe. The sector accounted for around 15% of the overall European market and stood at US$  320.6 million in 2019.  The evolving consumers’ perceptions of plant-based products being safer & healthier as compared to animal-derived products would contribute to fuel the market growth. The growing consumer preferences towards plant-based diets have fairly contributed to increasing its global sales. Moreover, leading manufacturers of coconut milk powder devising novel ways to incorporate coconut milk powder in various bakery and confectionery items would further drive the market growth. The increasing prevalence of lactose intolerance has pushed consumers to shift towards plant-based milk, thereby contributing to its sales growth. Moreover, growing interest in clean-label and natural products is projected to further boost the demand for the product(powdered milk) in the upcoming years.

Increasing Popularity of Asian Cuisine Globally to Propel the Market Growth

According to an article published in the Institute of Food Technologists (IFT)  in 2019, Chinese cuisine is the most-liked and tried Asian cuisine followed by Japanese, Thai, and Korean. Modern-day consumers are willing to experiment with new flavors and expect that the food they eat is flavorsome. Consumers, especially Gen Z and millennial are always seeking out new and exotic flavors. Coconut milk powderis one of the key ingredients in Asian recipes and is becoming rapidly popular among western consumers. The cross-culture food trends in western countries is also a factor driving the popularity of Asian cuisine. Along with this, the gradual increase in the number of Asian restaurant chains in these regions (Asia Pacific) has also contributed to the surging product (Powdered Milk)sales.

Coconut milk Powder Market - Impact of Coronavirus (Covid-19) Pandemic:

The COVID-19 outbreak has put a tremendous strain on the functional milk and nutraceutical industries. Several frontline workers including doctors, nurses, other medical professionals, hygiene workers or sweepers, and others, are working hard to stop the spread of the novel coronavirus. To combat the disease, government agencies have advised citizens to eat a healthy and nutritious diet. This is expected to increase demand for coconut milk, which promotes the body's good health and optimal functioning by providing essential nutrients. Coconut milk powderis necessary for the growth and repair of human cells and tissues. Plant protein is beneficial for weight loss in addition to providing the building blocks for healthy muscles and tissues.

Figure 1. Global Coconut milk Powder Market Value Share (%), By Region, 2021

North America held the largest market share in the global coconut milk powder market in 2021 and is projected to be the dominant region over the forecast period. This is owing to increasing consumer preference towards organic and healthy food products.

Market Restraints

Fluctuations in Raw Material Price Due to Weather Variability to Hamper Market Growth

Weather variability presents a huge external impediment factor that increases the uncertainty in the coconut production potential. Countries such as Sri Lanka, Indonesia, the Philippines, and Thailand are among the major producers of coconut in the world. Global climatic conditions have been rapidly changing due to an increase in greenhouse gas emissions and industrial activities. Southeast Asian countries are considered to be one of the world’s most vulnerable to climate change. The frequency of extreme weather events has increased in the past decade in the region.

Climate change has caused massive flooding, droughts, and landslides, which has negatively impacted the coconut plantation as it is susceptible to climatic variations. According to True Fruits Co., Ltd.’s sales export manager, the saltwater intrusion in the Mekong Delta region of Vietnam resulted in coconut production decreasing by 20% in 2020 compared to the previous year. Thus, fluctuations in coconut prices would impact the overall price of the end product, which is a major factor hampering the market growth

Market Trends

• Companies are increasingly implementing blockchain and other Internet of Things (IoT) technologies to effectively manage the procurement, processing, and distribution of coconut milk powder products
• Organic, Vegan, bio-based, Canned/Ready-to-Eat (RTE), clean label, and sustainable are identified as the top-selling proportions owing to increasing health, ingredient, and environmental consciousness, amid prevailing health emergency
• Mergers and acquisitions to acquire new technologies, strengthen portfolios, and leverage capabilities to remain key strategies of top companies in the coconut milk powder industry over the forcasting period.
• Growing prevalence of lactose intolerance in North America & Europe is the trends in the global coconut milk powder market.

Figure 2. Global Coconut milk Powder Market value Share (%), By Source, 2021

By source analysis:

Lower Prices and Greater Availability Help the Conventional Coconut milk powderSegment to Dominate

On the basis of source, the market is segmented into organic and conventional. The conventional variant, albeit exhibiting a slowdown in its sales, remains a dominating segment in this market. The easier availability, coupled with its lower price compared to its organic counterpart, is driving its demand.

By Application analysis:

Liquid Form to Hold the Major Share due to Its Wide Application in Beverages

Among the two forms of coconut milk powderavailable, the liquid form is the most preferred and hence, holds the larger share. The easier availability of liquid form in retail stores, along with its wide incorporation in beverages, such as coffee and tea, are the factors driving the segment. Due to the thick creamy texture of liquid milk, it is largely utilized in various Asian recipes to enhance its flavor and texture. Further, the replacement of dairy milk with liquid coconut milk powderfor manufacturing vegan yogurts and smoothies has led to increased sales. The powdered form is gaining traction from consumers due to its extended shelf life and ease of storage. The development of advanced technologies in powdered milk has helped in retaining the milk’s nutrient content, along with containing only trace amounts of fats, making it low in terms of calories. Such factors are expected to augment the segment’s growth in the forthcoming years.

Coconut Milk Powder Market Report Coverage

Report Coverage	Details
Base Year:	2021	Market Size in 2021:	US$ 32.40 Mn
Historical Data for:	2017-2020	Estimated Year:	2022
Forecast Period 2022 to 2030 CAGR:	8.92 %	Forecast Period:	2022-2030
Geographies covered:	By Region: North America, Latin America, Asia Pacific, Europe, Middle East, and Africa
Segments covered:	By Source: Conventional and Organic By Application: Food (Snacks, Bakery & Confectionary, and Dairy & Frozen Products) and Beverages By Distribution Channel: Online Stores, Hypermarkets/Supermarkets, Specialty Stores, and Others
Companies covered:	The Coconut Company (UK) Ltd., Tirumala Food Industries, Enature Organic Products, Ayam Sarl, Nestlé S.A., Renuka Foods PLC, S & P Industries Sdn Bhd, Shriram Coconut Products Limited, Star Heritage Products, and Pulau Sambu Singapore Pte Ltd.
Growth Drivers:	Rising Popularity of Veganism Rising Awareness about the Health Benefits of Coconut Milk Powder
Restraints & Challenges:	Fluctuations in raw material prices due to weather variability

Recent Developments

• June 2020 – Drums Food International Pvt. Ltd., under its brand named Epigamia, launched a range of plant-based yogurt made with coconut milk powder for Indian consumers
• April 2020 – Danone S.A., under its So Delicious Dairy Free brand, has launched Pairings Coconut milk powderYogurt Alternatives in four new flavors in the U.S. to offer consumers healthy and delicious plant-based snacks.
• Axelum Resources Corp. collaborated with local e-commerce such as Shopee and Lazada, as well as another online coconut store, in May 2021; these stores sell products such as coconut milk powder, coconut cream and milk, and coconut cooking oil.
• Only Earth launched its oat and coconut milk powderin India in May 2021. Only Earth's products are available from several online retailers in India, including Amazon, Big Basket, and QTROVE. The product costs INR 300 for a 1L package. In some Indian cities, milk products are also available at stores such as Nature's Basket and Foodhall.
• Danone SA began production of its plant-based Alpro drinks in March 2021 at its Labinsk plant in southern Russia. The first stage of the project has been completed, and the production of oat, almond, and coconut drinks is currently underway. The capacity of the new line is 7,000 units of product per hour in 1-litre and 0.75-liter packaging.

Competitive Section

Major players operating in the global coconut milk powder market include The Coconut Company (UK) Ltd., Tirumala Food Industries, Enature Organic Products, Ayam Sarl, Nestlé S.A., Renuka Foods PLC, S & P Industries Sdn Bhd, Shriram Coconut Products Limited, Star Heritage Products, and Pulau Sambu Singapore Pte Ltd.