Coconut oil is extensively consumed by the cosmetics industry for manufacturing various products for skin and hair care applications. Numerous manufacturers also use coconut oil in packaged food products, and many consumers use it for cooking foods such as fried foods, smoothies, and sweets. The rising popularity of coconut products in food applications coupled with the huge demand for coconut oil in the cosmetics industry is expected to drive the Middle East coconut products market.
The Middle East coconut products market is estimated to surpass US$ 1,549.5 million by the end of 2028 and is expected to exhibit a CAGR of 7.9% during the forecast period (2021 to 2028).
Increasing awareness about multiple advantages of consuming coconut products has been augmenting the target market growth. Coconut flesh is highly nutritious and provides fibers, vitamins—E, C, B1, B3, B5, and B6, and minerals such as iron, sodium, calcium, magnesium, selenium, and phosphorous. Furthermore, coconut products provide numerous health benefits such as improvement in cardiovascular health, reduction of digestive problems, and weight loss.
Increasing demand for coconut in the manufacturing of confectionery products is expected to foster the Middle East coconut products market growth. Desiccated coconut is also widely used in confectionery products. Subsequently, increasing demand for confectionery products is boosting the coconut products market growth during the forecast period. According to The Department of Agriculture and Agri-Food Canada under the Government of Canada, the confectionery market in the UAE was valued at US$ 481.9 million in 2016, and it is expected to reach US$ 800 million in 2021. The rising trend for lactose-free products, vegan products, and natural ingredients in the confectionery market is increasing the demand for coconut sugar and milk alternatives including coconut milk. New product launches of coconut-based confectionery is further propelling the growth of the Middle East coconut products market. For instance, Mirzam Chocolate Makers, a bar craft chocolate company, introduced confectionery products consisting of dark chocolate, dates, dried fruits, spices, nuts, and flavors including coconut, orange cinnamon, pumpkin seed, pistachio, and caramelized cacao nibs in April 2018.
Saudi Arabia held the dominant position in the Middle East coconut products market in 2020, accounting for 19.4% market share in terms of revenue, followed by the UAE.
Figure 1. Middle East Coconut Products Market Revenue Share (%), By Country, 2020
Fluctuating prices of coconut and its products is hindering the Middle East coconut products market growth. Coconut prices are majorly dependent on the source of coconut, transportation charges, serious damage to plantations due to natural disasters, and the global prices of coconut oil. This factor is anticipated to restrain the target market growth.
The demand for natural and organic products is growing rapidly. This is one of the current trends in the Middle East coconut products market. According to the UAE Ministry of Climate Change and Environment, in 2016, the demand for organic and natural products in the country increased rapidly, owing to its rising population and the share of the educated professional class. Health consciousness among such population and preference for healthy living habits and chemical-free organic and natural products are increasing the demand for products such as coconut water, coconut milk, etc.
|Base Year:||2020||Market Size in 2020:||US$ 771.1 Mn|
|Historical Data for:||2017 and 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||7.9%||2028 Value Projection:||US$ 1,549.5 Mn|
Thai Coconut Public Company Ltd., Vita Coco (All Market Inc.), Coco Veda Natural Products Inc., The Coconut Company Ltd., Merit Food Products Co., Ltd., Thai Agri Foods Public Company Ltd., Linaco, Marico Ltd., Hero Nature Products Pvt Ltd., and Chef’s Choice Foods Manufacturer Co. Ltd.
|Restraints & Challenges:||
Figure 2. Middle East Coconut Products Market – Opportunity Analysis
On the basis of product type, in 2020, coconut oil accounted for 40% of the revenue share. Coconut oil is used in food, toiletry, and industrial products due to its unique characteristics. It is saturated, stable, biodegradable, and provides long shelf life to fried products. This, in turn, is expected to drive the Middle East coconut products market growth during forecast period.
Figure 3. Middle East Coconut Products Market Revenue Share (%), By Product Type, 2020
Middle East Coconut Products Market - Impact of Coronavirus (COVID-19) Pandemic
The rapid spread of COVID-19 has affected about 210 countries including India and other countries in the Middle East. The pandemic has severely affected all the industries including food and beverages, chemical & petrochemical, pulp & paper, and others. The impact of the COVID-19 on the coconut product business in Middle East which is required for various applications in different industries is inevitable. According to data published by the International Finance Corporation, an international financial institution, the COVID-19 pandemic triggered a severe economic contraction in the Middle East, leading to declines in oil production, tourism, food & beverage industry, and remittances.
Key players operating in the Middle East coconut products market include Thai Coconut Public Company Ltd., Vita Coco (All Market Inc.), Coco Veda Natural Products Inc., The Coconut Company Ltd., Merit Food Products Co., Ltd., Thai Agri Foods Public Company Ltd., Linaco, Marico Ltd., Hero Nature Products Pvt Ltd., and Chef’s Choice Foods Manufacturer Co. Ltd.
Coconut products include coconut powder, coconut water, coconut milk/cream, coconut oil, and many others. Increasing demand for coconut products in Middle East has been observed over a few years. Coconut products such as coconut milk, coconut water, and desiccated coconut are widely used in the food & beverage industry as well as cosmetic industry.
Coconut water provides a cardio-protective effect, boosts kidney health, aids in diabetes management, provides rehydrating effect post exercise, and aids in maintaining blood pressure levels. According to the Global Burden of Disease Study 2013, more than 66% of men and 60% of women in the UAE are overweight or obese. Increasing health complications including diabetes and obesity is propelling the demand for healthy, natural, and organic products in the Middle East.
Various players in the Middle East coconut products market are involved in various trade shows such as Middle East Organic & Natural Products Expo, Gulfood, and other events to increase public awareness of coconut products. For instance, Protein Bar with Coconut by Earth Origin for General Trading LLC, Coconut Water by Celebes Coconut Corporation, etc. were promoted in Gulfood 2019.
Moreover, key players are focusing on promotional and marketing strategies. For instance, in May 2018, the Department of International Trade Promotion (DITP), a government organization that performs its role as the main promoter of Thai exports, organized a visit to Thai coconut plant with Asian Restaurant owner and catering business companies for the promotion of coconut water and coconut milk products and to share health benefits associated with coconut products.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.