The clear liquid contained within green coconuts is known as coconut water. It has a sweet and nutty flavor and includes carbohydrates that are easily absorbed in the form of natural electrolytes and sugars. It is frequently drunk as a low-calorie refreshing beverage that assists in reducing dehydration since it is high in potassium, sodium, manganese, calcium, and magnesium. It also includes cytokines and phytohormones, both of which have antiaging, anticarcinogenic, and antithrombogenic characteristics.
Coconuts for coconut water are typically picked when they are approximately 5-7 months old, and each coconut yields between 200-1000ml of coconut water. Coconut water is a fat-free, plant-based beverage high in nutrients, minerals, and electrolytes that delivers increased hydration while containing less calories than other natural juices and sports beverages. The global coconut water market is expected to be valued at US$6.64 billion in 2023, witnessing growth at a CAGR of 15.26%, during the forecasted period.
According to this report, the global coconut water market is divided into four regions: Asia Pacific, North America, Europe, and ROW. The countries covered in North America region are the US, Canada, and Mexico, while Europe includes the UK, France, Spain, Germany, Italy and Rest of the Europe. Moreover, China, Indonesia, Taiwan, Thailand, Japan, Rest of the Asia Pacific are included in the Asia Pacific region.
Asia Pacific accounted for the maximum share of the global market. In the Asia Pacific region, coconut water is used in various culinary dishes and drinks as a flavoring agent and base for cocktails. It is also consumed as a refreshing and natural energy drink. Moreover, rising preference for ready-to-drink (RTD) beverages, especially among health-conscious consumers, growing number of coconut plantations and increasing adoption of a vegan diet and non-dairy products were the major factors responsible for the growth of coconut water market in the region. Europe offers strong growth potential to the coconut water market. In the European region, coconut water is increasingly being consumed by individuals as it replenishes the body while preventing dehydration, especially after strenuous activity or workouts.
Top Impacting Factors:
Driver: Increasing Inclination of Consumers towards Health & Wellness
Given the increasing inclination of consumers towards health and wellness products, the consumption of functional drinks such as coconut water is rising in the western countries including US, U.K., and Germany. Moreover, the growing consumer awareness towards numerous health benefits of coconut water in improving digestive functioning, reducing hypertension, and maintaining hydration levels is further propelling the market growth. Therefore, increasing inclination of consumers towards health and wellness has boosted the consumption of coconut water and encouraged the market overall growth.
The coconut market is left in such a situation whereby farmers receive about US$0.12-US$0.25 per coconut and earn anything between US$72-US$7,000 a year, according to Fair Trade USA. In contrast, the average serving of coconut water sells for US$1.50 in the US, or £1.85 in a UK supermarket for a 330ml carton. Unfortunately, there’s nothing new about the appalling gap between what farmers earn at one end of the supply chain, and food and beverage companies’ profits at the other. These farmers have limited knowledge of such products and access to the technology that can produce the products. So it is that the stark gap between the two ends of the coconut water supply chain is only growing further apart. Such unfavorable conditions of farmers is resulting in declining volume of production, which is causing the failure of meeting the demand in the world market. Consequently, the huge gap between the two ends of the coconut water supply chain limits the coconut water market growth.
The growth in plant-based beverage market is continuously helping in increasing the adoption of coconut water. Natural low-sugar drinks are appreciated by the consumers which is resulting in the increasing sales of coconut water across various countries. Some of the replacements for dairy drinks that are used most often are cereal, nut and coconut-based drinks. Coconut water is also used as an ingredient in plant-based drinks, not only because of the reduction of sugar intake, but also because it improves the overall nutritional value of the final product. Accordingly, growing preference for natural and plant-based drinks is estimated to help in the expansion of coconut water market, globally.
The COVID-19 Analysis:
The COVID-19 pandemic has led to the temporary shutdown of production plants in several countries, impacting food and beverage industry in the initial stages. However, as much as the pandemic has affected the supply chain operations, the pandemic has generated the need for healthy living among the consumers, due to which, consumers have shifted their attention toward nutritional food products, providing new opportunities to the coconut water market.
Concerns about personal health, planetary sustainability and the ethical treatment of animals fueled this increased attention to plant-based diets, and it appears the coronavirus pandemic has only helped accelerate this trend. Thus, the growing trend of consumption of functional and immunity-booster products, the demand for coconut water increased substantially during the pandemic times and theis trend is expected to continue.
Analysis of Key Players:
The global coconut water market is highly dominated. The producers are making investments in e-commerce through various channels. The players are collaborating with retailers to expand the e-commerce business and establishing a Digital Command Centers in various regions to examine connections between consumer behaviour and financial results. The key players in the global coconut water market are:
The major market players are concentrating on growth strategies like mergers and acquisitions, increasing their distribution capacities, and increasing their market presence. For example, Kalbe Farma introduced coconut water Hydro Coco with vitamin D3. According to Kalbe Farma of Indonesia, Hydro Coco VITA-D is the first beverage containing vitamin D3.