Coconut Milk Market by Packaging Type (Tetra Packs, Plastic Bottles, and Cans), Distribution Channel (Direct Distribution and Retail Distribution), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028

Global Coconut Milk Market Analysis

The global coconut milk market size is predicted to garner $3,051.40 million in the 2021–2028 timeframe, growing from $1,027.50 million in 2020, at a healthy CAGR of 14.60%. 

Market Synopsis

Strategic alliances among market players, along with growing demand for coconut milk across the globe, are expected to accelerate the growth of the coconut milk market.

However, high cost of coconut milk is one of the growth-restricting factors for the market.

According to the regional analysis, the Asia-Pacific coconut milk market size is anticipated to grow during the review period and generate a revenue of $1,290.70 million, with CAGR of 15.20% due to increasing adoption of plant-based milk in the region. 

Coconut Milk Overview

Coconut milk is a type of plant-based milk which is prepared with the help of fresh grated coconut kernels. Coconut milk is used in many food recipes such as fish, curries, and meat dishes. Also, it is used in various bakery, sweets, and dessert products for flavoring. Moreover, coconut milk is used as protein supplement and as a moisturizer that is useful for skin care.

Covid-19 Impact on Coconut Milk Market Shares

The novel coronavirus pandemic had affected several industries. The global coconut milk market experienced a low growth during this period. The low growth of the market is owing to disruption in transportation facilities along with less supply of raw materials, which are some of the factors that has affected the market for coconut milk.

Furthermore, according to an article published in International Trade Centre, in May 2020, COVID-19 affected manufacturing of global exports because of disruption in supply chain due to complete lockdown and closing down of borders. Also, shut down of production process breaks the chain in manufacturing of whole product. All such factors showcase that pandemic affected the coconut milk industry negatively.

Increasing Prevalence of Plant Based Products to Surge the Market Growth

The global coconut milk industry is witnessing a massive growth mainly due to increasing demand for plant-based food products across the globe. Also, people are adopting coconut milk due to its health benefits such as it helps in losing weight, enhances cardiac health, and improves the function of the immune system along with consumer preferences towards vegetarian diet. Moreover, rising health consciousness and per capita income globally are some of the factors that may fuel the growth of the global coconut milk market.

Furthermore, growing trends of food influencer and consciousness towards consuming healthy diet are some of the factors that will drive the global coconut milk market. Also, coconut milk is widely used in food industry for various proposes that will completely drive the global market. These types of factors are predicted to drive the growth of the market.

To know more about global coconut milk market trends, drivers, get in touch with our analysts here.

High Cost of Coconut Milk to Restrain the Market Growth

Coconut milk is costly as compared to other milk, affecting the growth of the market. Also, coconut milk can cause allergies when consumed in large quantity. These are some of the factors anticipated to hinder the market value of the coconut milk in the next few years.

Rising Demand for Coconut Milk for Losing Weight to Create Massive Investment Opportunities

The global coconut milk market is spreading at a very fast pace due to increasing trends of weight loss among the people. Also, coconut milk contains medium-chain triglycerides (MCTs) which help in weight loss and balance out the gut microbiota. Moreover, coconut milk will increase the insulin production as it can break down the glucose and control the sugar level of blood. All such factors are positively affecting the coconut milk market growth.

Furthermore, antioxidants present in coconut milk will neutralize the growth of tumor growth and aging in the body. All such elements will accelerate the overall coconut milk market and will bring lucrative market opportunities for key players in the upcoming years.

To know more about global coconut milk market trends, opportunities, get in touch with our analysts here.

Source: Research Dive Analysis

The tetra packs type sub-segment is predicted to have a dominating share as well as fastest market growth in the global market. The sub-segment is expected to register a revenue of $1,885.30 million during the forecast period. Tetra packs increase the shelf life of coconut milk and decrease the chances of loss of aroma. Moreover, in tetra packs, coconut products are safe from exposure to contaminants, preserving the quality and freshness. These factors and strategic alliances may bolster the growth of the sub-segment during the forecast period and coconut milk market demand.  

Source: Research Dive Analysis

The retail distribution sub-segment of the global coconut milk market share is projected to be the dominant as well as have the fastest growth. It is also projected to surpass $1,864.10 million by 2028, with an increase from $617.5 million in 2020. This growth in the market can be attributed to growing trends of shopping in supermarkets along with availability of diverse range of coconut milk and their products in the supermarket, freedom of selection, and other facilities. Furthermore, at supermarkets, buyers can get quality goods at affordable and lower prices. All such elements may increase the demand for sub-segment and coconut milk market demand.

Source: Research Dive Analysis

The Market for Coconut Milk in Asia-Pacific to be the Most Dominant and Fastest Growing Region

The Asia-Pacific coconut milk market accounted $417.2 million in 2020 and is projected to register a revenue of $1,290.70 million by 2028. The extensive growth of the Asia-Pacific coconut milk market is mainly driven by factors such as increasing customer demand and preferences for different types of healthy coconut milk products that are being manufactured and sold mainly in India. Also, in Asia-Pacific countries, people are preferring plant-based milk items and the existence of top leading companies are augmenting the industry growth in the region. These are some of the factors that are fueling the market growth across the globe. These factors will ultimately drive the demand for the coconut milk market across the region.

Competitive Scenario in the Global Coconut Milk Market

Product launches and mergers & acquisitions are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading coconut milk market players are Dabur India Ltd, Goya Foods Inc., McCormick & Company Inc., Celebes Coconut Corp., Vita Coco, Thai Agri Foods Public Co. Ltd, Danone SA, Pureharvest, Thai Coconut Public Company, and Cocomi Bio Organic.

Porter’s Five Forces Analysis for the Global Coconut Milk Market:

• Bargaining Power of Suppliers: The product suppliers of coconut milk market are high in number and are larger and more globalized. Bargaining power of supplier depends upon production process and raw material requirement. So, there will be less threat from the suppliers.
  Thus, the bargaining power of suppliers is low. 
• Bargaining Power of Buyers: Buyers have huge options to select from more than different brands of coconut milk; this has increased the pressure on the coconut milk providers to offer the milk to the consumer. This gives the buyers the option to freely choose coconut milk products that best fit their preferences.
  Thus, the bargaining power of the buyers is high. 
• Threat of New Entrants: Companies entering the coconut milk market are adopting various innovations such as developing coconut milk that is available in different packaging and tastes. Also, initial investment and the cost to establish the business is very less and the technology needed for manufacturing is easily available in the market.
  Thus, the threat of the new entrants is high.
• Threat of Substitutes: There are various substitutes available for coconut milk such as almond milk and other types of plant-based milk, but they do not have high benefits as that of coconut milk.
  Thus, the threat of substitutes is low.
• Competitive Rivalry in the Market: The competitive rivalry among industry leaders is rather intense, especially between the global companies such as Dabur India Ltd and Goya Foods Inc. are launching their value-added services in the international market and strengthening the footprint worldwide.
  Therefore, competitive rivalry in the market is high.