Coconut Milk Powder Market (2020 - 2027)

Coconut Milk Powder Market Summary

The global coconut milk powder market size was valued at USD 52.5 million in 2019 and is expected to reach USD 113.0 million by 2027, registering a compound annual growth rate (CAGR) of 10.1% from 2020 to 2027. Increasing adoption of these powdered forms as one of the economical alternatives with higher shelf-stability to regular coconut milk is driving the market.

Generally, a canned or tetra pack of liquefied coconut milk after being opened has a shelf life of fewer than 10 days in contrast to the powder variants which can last for over 30 days. These dehydrated products are processed by evaporating milk to dryness, which helps in preserving it and provide a high shelf life. Furthermore, coconut milk powder is considered a sustainable product for those who cannot buy liquefied coconut milk regularly or prefer buying groceries in bulk.

The adoption of the product is driven by the increasing awareness about its benefits over dairy counterparts. Rising health consciousness is also driving the product demand as coconut milk offers a good substitute for dairy derivatives as they are constituted of short and medium-chain triglycerides. It is also rich in Vitamins C and E, which have the ability to limit tumor growth and occurrences of aging disorders.

Dairy derivatives are among the prohibited food items for both dietary as well as ethical vegans. In addition to dietary complexities regarding the consumption of dairy products, poor treatment given to dairy cows has paved the way for the rising adoption of veganism. Vegan population groups are working towards removing the commodity status of animals and are increasingly adopting other plant-based alternatives including coconut milk.

Coconut milk powder is used in the preparation of various dishes, such as smoothies, shakes, ice creams, cakes, doughnuts, sauces, and gravies. Along with this, various cuisines including Brazilian, Burmese, Caribbean, Filipino, Indian, Thai, Malaysian, Indonesian, Hawaiian, Singaporean, Maldivian, Sri Lankan, and Vietnamese consider the product an elementary component. For instance, Haupia, a traditional Hawaiian dessert, involves using coconut milk powder.

Product Insights

Conventional product types accounted for the largest share of more than 70% in 2019. Conventional milk powder was the leading product segment as it was among the first powder variant to be introduced in the market. These products are also much more economical in comparison to their organic counterparts.

Organic coconut milk powder is expected to register the fastest growth during forecast years. The surge in demand is mostly due to increasing awareness regarding the benefits of consuming organic foods. Organic coconut powder is free of chemical fungicides, herbicides, and insecticides. Furthermore, the rising preference for products, which have been grown and manufactured in an eco-friendly fashion is likely to support the growing organic products segment.

Application Insights

B2B applications accounted for the maximum share of more than 66% in 2019. Coconut milk powder is used in the commercial production of smoothies, shakes, ice creams, cakes, doughnuts, and sauces. Growing demand for vegan ice creams and cakes as dessert items in dine-out hotels and Quick Service Restaurants (QSRs) is expected to promote the scope of the B2B segment in the near future.

B2C is expected to register the fastest growth during forecast years with a CAGR of 10.7% from 2020 to 2027. Coconut milk powder is expected to remain one of the key potential ingredients, which can be used in the preparation of Indian, Hawaiian, Vietnamese, and several other authentic cuisines.

Distribution Channel Insights

Offline distribution channel held the largest market share of more than 77% in 2019. This channel of distribution includes point of sales including specialty stores, department stores, mom & pop stores, convenience stores, supermarkets, hypermarkets, and superstores The proximity of these stores along with the wide variety of products kept in these acts as a major factor driving the segment growth.

The online segment is expected to register the fastest CAGR of 11.1% from 2020 to 2027. Increasing dependency on e-commerce channels owing to busy lifestyles is propelling the trend of online shopping. Furthermore, online channels are highly convenient and provide various offers, such as discounts and cashback.

Regional Insights

The Asia Pacific was the leading regional market and held 33% of the overall share. It is projected to expand further at a steady CAGR from 2020 to 2027. Extensive usage of coconut in preparing various recipes is the key factor driving the product demand. Europe is expected to witness the fastest CAGR over the forecast years. Increasing demand is attributed to the adoption of veganism as a dietary lifestyle in the majority of the countries including Germany, the U.K., Spain, and Italy.

Key Companies & Market Share Insights

The market is majorly dominated by small-scale manufacturers, which largely focus on local domestic markets. The market is at a niche stage of development and is expected to undergo seismic changes as it matures with new product development and the inclusion of cost-effective technologies among manufacturers. Some of the prominent players in the coconut milk powder market include:

• Nestlé Inc.

• Anthony’s Goods

• BareOrganics

• Bramble Berry Inc.

• Dr. Ben Kim Natural Health Solutions

• Enerhealth

• Grace Foods Canada Inc.

• HEALTHWORKS

• King Arthur Flour Company, Inc.

• KOS

Coconut Milk Powder Market