Packaged Coconut Milk Market Size 2024-2028

The packaged coconut milk market size is projected to increase by USD 1.38 billion and the market size is estimated to grow at a CAGR of 14.97% between 2023 and 2028. The rising adoption of a vegan lifestyle globally is poised to drive market growth for packaged coconut milk during the forecast period. Health-conscious consumers are increasingly embracing veganism, attracted by its promise of better prosperity, detoxification, and moral concerns related to creatures. This vegan-friendly movement has experienced remarkable growth, with a three-fold increase over the past decade. Moreover, as consumers become more aware through social media and online advertisements, they are increasingly inclined to reduce their consumption of animal-derived products. The rising demand for coconut milk is further fuelled by the increasing popularity of specialty foods and the health and wellness trend.

Packaged Coconut Milk Market: Overview

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Market Segmentation

By Product

The market share growth by the conventional segment will be significant during the forecast period. Conventional products are made with conventional cultivation and use pesticides to avoid pest attacks. This is made by removing the coconut meat and soaking the coconut meat for a period of time to break down the coconut and make coconut cream, which rises on top of the coconut. Coconut cream is the thickest and fatty part of coconut used in desserts.

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The conventional segment was valued at USD 668 million in 2018. The coconut cream is removed from the top and marketed as coconut cream like other dairy products. The rest of the product is strained several times until it is thin enough to store and sell. This can also be sold fresh on the dairy shelf. As conventional products require conventional raw materials, including conventional coconut, the final product is inexpensive, which will be the major driver of the conventional segment during the forecast period.

By Distribution Channel 

Supermarkets and hypermarkets are the main distribution channels for packaged coconut milk owing to the market growth of the organized retail sector across the globe. Due to the raised demand for packaged product supermarkets and hypermarkets provide a wide variety of it. Improved shelf storage in supermarkets and hypermarkets will increase product awareness, attract more consumers, and lead to more purchases. Additionally, some retailers offer packaged, private-label coconut milk brands at competitive prices. Therefore, consumers are more likely to purchase such products. Hence, the availability of cost-affordable products in supermarkets is expected to drive the market growth and trends of the segment during the market Outlook forecast period.

Moreover, as consumers increasingly seek Non-Dairy Beverages, the market trends and analysis indicate a growing preference for this as a dairy alternative. Market growth analysis further suggests that the market segment is poised for expansion, with market research and growth indicating promising opportunities for manufacturers and retailers alike.

Key Region

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North America is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Consumer demand for packaged products as an alternative to animal milk is driving the growth of the market. The rise in lactose intolerance and cow's milk allergy is also increasing demand for dairy alternative plant milk beverages such as packaged products. Growing awareness of the environmental impacts of the dairy industry, including greenhouse gas emissions and water use, is driving a shift toward more sustainable, plant-based alternatives. Plant-based milk production generally has a lower carbon footprint and uses less water than conventional dairy farming. The rising adoption of a vegan diet is growing the demand for plant-based dairy alternatives such as packaged coconut milk.

Market Dynamics and Customer Landscape

The Packaged Coconut Milk Market is driven by the increasing demand for dairy-free and lactose-free alternatives, particularly among health-conscious populations dealing with obesity, lactose intolerance, and other health concerns. Mature coconuts are the primary source of this market, with production decline in some regions leading to product innovation and price fluctuations. The market caters to various customer preferences, including organic and conventional options, available in forms such as liquid, powder, pouches, bottles, and cans. Health benefits, nutritional content, and convenience are key factors influencing consumer choices. Convenience stores, discounters, and internet commerce channels contribute significantly to the market's growth. However, challenges such as allergens, unhealthy profile, hormone usage, and balanced diet concerns may impact market expansion. Coconut milk and coconut cream are popular product categories, with coconut milk powder gaining traction due to its long shelf life and convenience. The market is expected to grow steadily due to the health halo associated with nature's organic offerings. Dairy producers are also entering the market to cater to the changing consumption attitudes.

Key Market Driver

The rising adoption of a vegan lifestyle across the world is expected to drive the growth of the global packaged coconut milk market during the forecast period. Health-conscious consumers are turning vegan due to reasons such as seeking better prosperity, detoxification, moral concerns about creatures, and assurance of nutritional benefits from consuming plant-based beverages. The vegan-friendly movement has witnessed exponential growth, with a three-fold increase in the past decade. Driven by increasingly hectic lifestyles, consumers are increasingly understanding the importance of instilling a healthy diet in their daily lives. This trend is fueled by growing awareness through social media and online advertisements. The influence of social media is significant, and any information posted on social networking websites is quickly adopted by most consumers. With businesses acknowledging the nutritional and sustenance benefits, many are embracing veganism by incorporating coconut milk into their dairy substitutes menu. In 2021, approximately half a million British adopted a vegan lifestyle.

Furthermore, more and more people worldwide are willing to reduce their consumption of animal-derived food products. The rising vegan culture is a growing trend globally. Moreover, there are numerous e-commerce stores offering vegan products to customers online, thus driving the growth of the global coconut milk market during the forecast period.

Significant Market Trend

Rising veganism is the key trend driving the growth of the global market. Veganism means avoiding animal products, particularly in your diet. A person who follows a vegan diet is called a vegan. Increasing adoption of vegan lifestyles across the globe will drive the growth of the global market in the future. People become vegan for reasons such as greater wealth, detoxification, a sense of morality on creatures, and assurance of health benefits by consuming packaged vegan and gluten-free foods. Vegetable lovers have developed exponentially, and in the last decade, they have shown three-fold growth.

Moreover, due to the rising hectic lifestyles, consumers moderately understand the need to use a healthy diet in their daily lives. This is boosted by increasing awareness via social media and online advertisements. The impact of social media is high on the lives of consumers, and any information posted on social networking websites is rapidly adopted by most consumers. Hence, the rising vegan culture is expected to boost the market during the forecast period.

Major Market Challenge 

High price and limited awareness of coconut milk is the major challenge that affects the growth of the market. The excessive fee of packaging vegan milk like coconut milk as compared with traditional dairy products is one of the main motives at the back of their confined penetration and adoption in areas including MEA, South America, and Eastern Europe. Furthermore, middle-income people in developed countries also avoid buying packaged vegan food processing brands because of their high prices. The price per pound of packaged coconut milk varies widely on brands and is roughly 1.5 to 2 times the price of the same amount of traditional dairy milk.

However, the market is rising, and consumer awareness of packaged vegan milk is very limited, especially in South America, Southeast Asia, MEA, and Eastern Europe. Hence, the packaged vegan milk industry in these regions is highly underdeveloped, with low penetration. This is a major concern for the market players, which is expected to impede the market during the forecast period.

Companies Overview

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Key Offering- Celebes Coconut-Corp.: The company offers products such as organic coconut-milk.
• Key Offering- Cocomi Bio Organic:  The company offers products such as Cocomi Coconut-milk drink.
• Key Offering- Dabur India Ltd.: The company offers products, namely Dabur Hommade Coconut-Milk.

The market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Ahya Coco Organic Food Manufacturing Corp.
• Campbell Soup Co.
• Coconut-Palm Group Ltd.
• Danone SA
• Edward and Sons Trading Co.
• Goya Foods Inc.
• Heng Guan Food Industrial Pte Ltd.
• McCormick and Co. Inc.
• Merit Food Products Co. Ltd.
• Nestle SA
• PureHarvest
• Thai Agri Foods Public Co. Ltd.
• Thai Coconut-Public Co. Ltd.
• The Coconut-Co. UK Ltd.
• The Vita Coco Co. Inc.
• Theppadungporn Coconut-Co. Ltd.
• Istore Direct Trading Pvt. Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Product Outlook
  • Conventional
  • Organic

• Distribution Channel Outlook
  • Supermarkets and hypermarkets
  • Convenience stores
  • Online retail
  • Others

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile 
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

Among Health-conscious Consumers Packaged Coconut Milk has been gaining popularity in the food and beverage industry due to its Dairy-free and Lactose-free nature. Mature Coconuts are the primary source of this product, which is rich in Nutritional Content and offers numerous Health Benefits. Customer Preferences are shifting towards healthier options, and the rise in Health Concerns, such as Obesity and Lactose Intolerance, is driving the demand for Coconut Milk. The Packaged Coconut Milk market includes various forms, such as Liquid, Powder, Pouches, Bottles, and Cans. Product Innovation in the form of Organic Coconut Milk and Coconut Cream is catering to the Health-conscious Population and those following a Balanced diet. Convenience Stores, Discounts, and Internet Commerce are the primary Distribution Channels for this product.

Despite the Production Decline in Coconut Production, the market is expected to grow due to the decline in Dairy consumption and the increasing Health-conscious Population. However, concerns regarding Allergens, Hormone usage, and the Unhealthy profile of some packaged versions may impact the market negatively. Dairy producers are emphasizing the Health Halo of Coconut Milk and Nature's Organic Conventional and Conventional versions to cater to various consumer segments. The market includes coconut water, Coconut Milk Powder, Liquid, Pouches, Bottles, and Cans, offering versatility in usage across Food and Beverage Processing.

Moreover, the market is experiencing significant growth due to its role in promoting a healthy lifestyle and sustainable living. This functional food is increasingly popular as a plant-based alternative in vegan eating habits and cosmetics. With rising concerns over chronic lifestyle diseases, the nutraceutical industries are leveraging coconut milk's rich nutrients, including plant protein, for health supplements. Animal health benefits and online retail channels are also driving demand. Sustainable production methods ensure this market remains eco-friendly.

What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market forecasting, market analysis and report, and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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