Coconut water or also known as coconut juice is the clear liquid inside the young green coconut. To achieve the bliss point of the coconut water, meaning it has the right amount of sweetness; manufacturers let the coconuts grow from 6 to 9 months before harvesting. Because of many factors, coconut water has been a very profitable product in the beverage industry in recent years. Market observers are now seeing this product to surpass the sales of orange juice. With the market growth this product is having, it is perceived to be the next big thing in the beverage industry.
With all of this interest in the coconut water, let us discover what made this product attractive to consumers. Let us know what made its industry move to a positive and profitable direction, and let us see how it is performing and presented in the global market.
MARKET DRIVERS
There are multiple factors why coconut water is now in the spotlight and consumers are choosing it over other known beverages. Here are the main observable market drivers that make the industry boom.
1. Celebrities
Many people are considering the coconut water to be a super drink because of its amazing hydrating features plus all the nutrients it’s positively contributing to the body. Many celebrities have the same attitude towards coconut water and their harmless or sponsored promotions have made the coconut water trending. These celebrities are seen to be using the coconut water an alternative to their sugar-loaded sports drink. Sometimes, they post a selfie holding a bottle of coconut water just to relieve them from the heat of the day. These simple deeds were emulated by the general public, thus the positive movement in the coconut water industry.
2. Consumers’ lifestyle shift
Lifestyle shift seems to be on trend lately. People, especially those active on social media, are announcing their diets and their new-found abhorrence towards bad habits and “bad foods”. Because many people are now leaning towards organic and plant-based diets, they are also seeking alternatives to their sugary drinks such as soft drinks and energy boosters.
With just a few clicks on the internet, consumers can immediately get information about their lifestyle change. Many studies, articles, and videos have been swearing to the power of coconut juice, so many consumers did do the change and availed coconut juice. Their switch is indeed worth it because coconut water is proven to have tons of health benefits and what a great plus for it to be plant-based and not artificial.
3. Pro-coconut farming policies
Since coconut trees are mainly produced in tropical countries, the supply of coconut water to the global market is quite limited. However, governments of different countries have seen its health benefits, especially its profitability that can positively move their economies. Because of this observation, governments got behind the coconut farming. Many policies were pushed to be passed to support farmers and to promote coconut farming. Many projects were launched to encourage coconut farming. Many farmers are incentivized by planting coconuts and even by manufacturing its by-products. This support from the government enhanced the supply of coconut juice. This influx of supply gave opportunities to farmers and became beneficial to the livelihoods of thousands, even millions of families.
NUTRITIONAL BENEFITS
Despite the simplicity of the product, the coconut juice is packed with number of nutrition. Here are some of the amazing health benefits you can get in drinking coconut water:
- Vitamins and minerals that strengthen your immune system and keep you from getting common diseases
- Phytonutrients which are small yet vital nutrients found in plants that humans cannot naturally produce
- Amino acids that build and repair our tissues, and protect us from bacteria and viruses.
- Antioxidants that protect our cells from the damaging free radicals
Since most coconut trees are planted near seas, the trees’ roots absorb the salt water which contains minerals such as potassium, calcium, manganese, iodine, zinc, etc.
MARKET SEGMENTATION
Perhaps the high demand for the coconut juice pushed the manufacturers to give more variants, be more creative in their packaging, and make the product more accessible to consumers. Here are ways how the coconut water is presented in the global market:
By product type:
- Sweetened
- Unsweetened
By packaging type:
- Paper & Paperboard
- Metal
- Plastic
By variant:
- Plain
- Flavored
By distribution channel:
- Super/Hypermarkets
- Convenience stores
- Specialty stores
- Online stores
REGIONAL SEGMENTATION
The coconut trees are mainly grown in tropical countries because of the weather. So it is not surprising that the Asia Pacific region is leading in coconut juice consumption and production. Another reason that this region has the greatest market share is its large population. Having a great number of people most likely means a great number of consumers and farmers. In 2015, China was recorded to have the largest production and consumption, having 62.48% global market share. Next in the list are India and Indonesia.
In the meantime, North American region comes next in the leading producers and consumers. In 2015, it was recorded to have the 23.31% in the global market share, second to China. Market observers point that North Americans’ lifestyle shift and their awareness to the ill-effects of sugar drive the coconut water industry upwards. More Americans are leaning towards plant-based diets, hence the conversion to drinking coconut juice.
While almost all countries in the world have coconut water consumers, there are some areas that are now being considered to be new and emerging markets. UK, Germany, Italy, and Australia’s coconut juice market are now gaining momentum.
MARKET PROJECTIONS
With a CAGR of 25%, market observers are predicting the coconut water market to be valued at a staggering USD 8.3B by 2023. This is brought by particular market segmentations that are seen to lead the coconut juice market.
Flavored coconut juice is now the dominating product variant. It is considered to be the main segment to lead the global packaged coconut juice market. Manufacturers are reported to be launching more flavors in the upcoming years.
In the packaging segment, plastic and paperboard packaging are now taking the ¾ of the total consumer usage. Meanwhile in the product type, sweetened coconut juice is preferred by most consumers, having more than half of the market.
In the distribution channels, the physical stores, supermarkets and hypermarkets, are still dominating. However, there are two emerging distribution channels that are bringing coconut juice nearer to consumers: vending machines and e-commerce.
KEY VENDORS
There are 3 main players in the coconut juice global market. These are the main manufacturers that can easily make waves in the industry due to their large global operations. Any product development or marketing strategy coming from these companies can radically change the coconut water market.
- Coca-Cola
- PepsiCo
- Vita-Coco
See also: Ready for Summer: Coconut Water Mocktail Recipes
With all the amazing health benefits it gives, coconut water is indisputably a super drink. People coming from all walks of life enjoy its extraordinary hydrating powers. Common people and even famous celebrities are now proud of consuming this wonderful drink.
Having the staggering figures that show how well the industry is doing and will be doing in the upcoming years; coconut water is indeed not just a super drink to the body, but also a super drink in the global market. You can also enjoy the coconut water invasion and understand why people all over the world can’t get enough of this drink. Try Royce Foods’ Coconut Water today!