Coconut Butter Market Expected to Reach $1.9 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Coconut Butter Market," The coconut butter market size was valued at $986.30 million in 2021, and is estimated to reach $1.9 billion by 2031, growing at a CAGR of 7.2% from 2022 to 2031.

The fresh pulp of a mature coconut is drained and unsweetened before being crushed into coconut butter, a semi-solid white creamy paste. It is offered for sale as a hard, white block that can be kept at room temperature. There are 100 calories in a 1 tablespoon (14.000g) serving size of coconut butter. The calorie breakdown is 81% fat, 14% carbs, and 4% protein.

Coconut butter improves athletic performance, metabolism, gastrointestinal consistency, feeling fuller for longer, energy levels, and blood sugar regulation. Increased immunity, the destruction of dangerous bacteria, viruses, and fungi, lowered cholesterol, disease prevention, and virus defense are all benefits of coconut butter. In addition, coconut butter promotes hair growth, dandruff prevention, and weight loss.

The global coconut butter market is analyzed on the basis of nature, end user, distribution channel, and region. On the basis of nature, the coconut butter industry is bifurcated into organic and conventional. Among these, the conventional segment occupied the major coconut butter market share in 2021 and is projected to maintain its dominance during the forecast period. Chemical fertilizers are used by farmers in conventional farming to promote plant growth. Pesticides and chemical herbicides are used in traditional food production, including conventional coconut butter. These kinds of products are low in price compared to organic products, leading to the rise in demand for conventional coconut products at a rapid pace. These coconut butter market trends are offering coconut butter market opportunity globally. 

On the basis of end user, the market is divided into the cosmetics and personal care industry, the food & beverage industry, and others. The cosmetics and personal care industry segment is expected to grow at a moderate rate during the forecast period. The demand for natural and organic cosmetics has increased recently. The negative consequences of synthetic chemicals used in traditional beauty products are becoming more and more known to consumers. Coconut butter, a natural product made from coconuts, is popular among customers looking for organic substitutes.  It has become more and more popular in recent years due to its numerous health advantages. It is well known that coconut butter is good for the skin, hair, and nails. The demand for cosmetics made with coconut butter has increased as a result of this.

On the basis of distribution channel, it is classified into supermarkets/hypermarkets, convenience stores, online sales channel, and others. The online sales channel segment is anticipated to grow at the highest CAGR during the forecast period. The online sales channel is regarded as one of the most beneficial distribution channels due to the wide availability of products as well as free home delivery. In addition, the rise in internet penetration in developed and developing nations also drives the growth of the segment.

The region that dominated the global coconut butter market in 2021 was Asia-Pacific, and this dominance is anticipated to continue throughout the coconut butter market forecast period. The expansion of the regional market is due to factors including the enormous demand for coconut oil from developed nations, the increase in coconut production by major plantations, and the huge domestic consumption of coconut butter. In addition, due to growth in knowledge of the benefits of coconuts among customers and increased use of coconut products among residents, the regional market is predicted to rise with promising prospects. Asia has also been the largest consumer of coconut products, due to the presence of tropical regions and coconut production is an extremely popular occupation and source of income.

The coconut butter market growth has been severely impacted by the COVID-19 pandemic. Purchasing habits of the consumers eventually shifted. Since they were so concerned with their health and followed a healthy diet to ward off viral attacks, most consumers favored natural and organic products over those made of chemicals. Even though coconut products are strong and anti-microbial, people were still ingesting them. As a result, the market has benefited from the uncertainty brought on by fiscal year 2021 due to the rise in coconut butter market demand.

The major players analyzed for the global coconut butter industry are ANDY ALBAO CORPORATION, Asia Botanicals Sdn. Bhd, Bali Nutra, Ceylon Coconut Company, Dhatu Organics & Naturals, Hallstar Innovations Corp., MaraNatha, Nutretiaa Industries, Phildesco Inc., and United Foods India.

KEY FINDINGS OF STUDY

• On the basis of nature, the conventional segment was the highest revenue contributor to the market and is estimated to growth with a CAGR of 7.5% during the forecast period.
• On the basis of end user, the food and beverage industry segment was the highest revenue contributor to the market and is estimated to grow with a CAGR of 6.9% during the forecast period.
• On the basis of distribution channel, the online sales channel segment was the highest revenue contributor to the market and is estimated to grow with a CAGR of 7.5% during the forecast period
• On the basis of region, Asia-Pacific was the highest revenue contributor and is estimated grow with a CAGR of 7.6% during the forecast period.