Desiccated coconut market is expected to grow at a CAGR of xx% during the forecast period. The market was valued at USD xx million in 2023 and is expected to reach USD xx million by 2028.
Desiccated Coconut Market Overview:
The coconuts that have been dried and shredded are called desiccated coconuts. This drying of the coconut is done to remove moisture and bring the coconut shreds to a desirable and appealing taste, along with giving it a longer shelf life. Dried coconuts have been around for a long time since the 1880s, and they started in England and USA. Drying the coconut and cutting it into various forms like shreds, flakes, chips, macaroons, and even coconut flour helps increase its feasibility and uses. It is often used in several dishes for its fresh nutty flavor and rich consistency. The rising need for extended shelf lives supports the desiccated coconut market growth. Desiccated coconut can be bought and also prepared at home with some simple steps. Druing and storing of coconut is now an extremely common procedure, and desiccated coconut is known all around the world for its advantages. They are popular for their mild flavor and sweet fragrance.
Desiccated Coconut Market drivers:
The desiccated coconut market revenue is growing due to the rising need for longer shelf life in allied foods supports the growth of the market. Coconut, once desiccated (non-sweetened), can stay fresh for up to 6 months if properly refrigerated. Additionally, the wide applications of coconut in baking and cooking support the need for the market. Coconut is often used as a filling for numerous coconut-flavored sweets and confectionaries. Some of the popular coconut-filled confectioneries are chocolates filled with coconut filling, coconut barfi, coconut macaroons, cupcakes, etc., and they are generally a very tasty addition to any kind of sweet dishes as toppings and coatings as well. Desiccated coconut is also used in several savory dishes worldwide, like sambar, chutneys, Beef rendang, coconut chicken curry, sauteed vegetables, etc. desiccated coconuts can also be added when a recipe calls for fresh coconut shreds and coconut milk. Therefore, the multiple applications of desiccated coconut support the market growth.
The ease of making desiccated coconuts at home drives market growth. Additionally, the easy availability of desiccated coconuts at various locations supports the growth of the market. This ingredient can help bakers prepare gluten-free, low-carb, and grain-free dishes that are good for the body and for people with celiac disease or if you are on a diet. The populations who count their carbohydrate intake also prefer to have coconut flour made from desiccated coconut leading to more demand. Furthermore, the several health benefits of the product support the desiccated coconut market demand. The low prices and growing shift toward organic foods support the growth of the market. Desiccated coconut is also used in functional beverages and packaged snacks and goods, further promoting the market growth.
It is rich in good fats and has no cholesterol, along with copper, manganese, selenium, and fiber. Desiccated coconut helps keep the heart healthy, reduces the risk of cancer, reduces the possibility of infertility in men, and boosts the immune system and thyroid function, along with supporting metabolism and controlling diabetes. Additionally, desiccated coconut is also good for high blood pressure and osteoarthritis, improving blood production and collagen, along with producing antioxidants. Therefore, the several health benefits of the product and the growing number of chronic diseases worldwide leading to healthier choices in the population support the growth of the desiccated coconut market size.
Restraints:
The growing detection of adulteration in desiccated coconuts, along with allergic reactions in some individuals, is a significant drawback to the market. Additionally, excessive consumption of desiccated coconut can cause cholesterol and lead to heart conditions. The growing competition among the key market players can also lead to a restrain to market growth. The allegations of the presence of high content of saturated fats in desiccated coconut lead to more drawbacks for the market. Additionally, the preference for other coconut products like oils and water leads to more restraints for the market.
Impact of covid-19 on the desiccated coconut market:
The pandemic had a significant impact on several economies around the world and led to a severe economic crisis. The market had a severe impact on the food and beverages industry due to lockdowns and restrictions on the production and transportation of all goods. The desiccated coconut market also had a negative impact from the pandemic as the end users of desiccated coconut, like bakeries, confectioners, restaurants, etc., all shut down, and there was a decline in demand and a halt in production as well. Additionally, the declining coconut farming due to the crisis situation also led to a decline in the growth rate of the market. However, as desiccated coconut is deemed as a healthy food, its demand grew as people started shifting their attention toward healthier food options.
desiccated coconut market Key Developments:
March 14, 2023, The Governments of the world are criticizing the monkey labor practices of coconut collections in Thailand and are urging other companies to boycott importing coconut products from Thailand. Therefore other coconut exporters countries like Srilanka are witnessing growth due to proving that they are authentic businesses with no ethical and pure products. The negative reviews surrounding Thailand's coconut products are leading to an opportunity for the Sri Lankan market.
October 3, 3033, As the Indian government increased the imports from Sri Lanka for desiccated coconut, the Indian desiccated coconut market faced a dip in revenue. The growing prices of desiccated coconuts in India led to more srilankan exports due to their cheaper price points. However, this large influx of imports led to losses for the Indian market as the desiccated coconut with the manufacturing cost of 130 rupees per kg needed to be sold for 110 rupees per kg in order to price match the srilankan imports. The native business providers are not happy about this development.
February 7, 2023, Metro Pacific Investments Corp (MPIC) announced that it is acquiring 34.76 percent of the Axelum Resources Corporation (ARC) for P5.32 billion. The acquisition is being led to help MPIC to have an even better food hold in the agricultural sector as it expands its businesses.
By Form:
Granular
Flakes
Chips
Shreds
Powder
The powder form desiccated coconut is expected to dominate the market during the forecast period as it is the simplest form to consume and can easily be integrated into different dishes. Additionally, the health benefits of powdered desiccated coconut, like helping control cholesterol and reducing the risk of heart disease, support the growth of the market.
The flakes and shreds form is also expected to have some revenue in the desiccated coconut market. The growing popularity of coconuts as toppings and spreads in salads and sweets support the growth of this segment.
By Application:
Confectionery
Dairy Product
Bakery
Frozen Dessert
Other Applications
The confectionery segment is expected to dominate the market during the forecast period as the desiccated coconut is mostly used for sweet treats due to its refreshing flavor. The bakery segment is also expected to have grown due to the use of desiccated coconuts in baked products like cakes, cupcakes, pies, and pastries.
By Distribution Channel:
Direct
Indirect
Specialty Stores
Convenience stores
Independent Retailers
Hypermarkets/supermarkets
Online Retailers
The Indirect segment is expected to dominate the market during the forecast period due to the ease of availability in the indirect segment. Supermarkets and online retailers have a high influx of consumers leading to growth for the segment. The growing internet penetration and e-commerce websites support the growth of the online segment.
The direct segment is also expected to have some revenue as the demand for more organic and fresh products instead of packaged goods grows.
North America
Europe
Asia-Pacific
Latin America
Middle East and Africa
The European region is expected to dominate the desiccated coconut market during the forecast period due to the high consumption of desiccated coconut in the region. Countries like Netherlands and Russia are heavy importers of desiccated coconuts, and the increasing use of coconuts in popular European confectionaries and beverages supports the growth of the market. The market in Asia-Pacific is also expected to grow due to the heavy usage of desiccated coconut in multiple cuisines like sambar, chutneys, authentic curries, and sweets as well. Countries like Thailand, India, China, Japan, South Korea, Indonesia, etc., are heavy users of desiccated coconuts. The demand for organic foods supports the growth of the desiccated coconut market in the region. Additionally, countries like Srilanka, the Philippines, and Indonesia are the most prominent suppliers of desiccated coconut, further driving the market growth.
The market in North America is also growing due to the rising need for healthier foods as cardiovascular diseases are on the rise. With the growing rates of obesity in countries like the US and Canada, with around 1 in every 3 adults being overweight or obese in America, there is a need for low-fat foods, supporting the growth of the desiccated coconut market in the region. Additionally, the presence of certain key players in the region supports the growth of the market.
Bake King
Holland and Barrett
Primex Coco Products Inc.
Silvermill Group
Fiesta
VEIT DELTA Corporation
Goldman International Pvt. Ltd.
Celebs Coconut Corporation
VV Industries
Coloma Bio Organic
CBL Natural Foods
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