The global virgin coconut oil market size was USD 2.11 billion in 2020. The market is projected to grow from USD 2.24 billion 2021 to USD 3.69 billion in 2028 at a CAGR of 7.35% during the 2021-2028 period. This vital information is presented by Fortune Business Insights™, in its report, titled, “Virgin Coconut Oil Market, 2021-2028.” Factors such as increasing therapeutic usage along with integration of treatment of Alzheimer’s disease and anti-cancer therapy will boost the growth of the market. Also, increasing demand for functional ingredients will increase the footprint of the market during the forecast duration.
COVID-19 Pandemic to Lead to Decreased Production of Coconut Oil due to Constant Lockdowns
The COVID-19 pandemic has caused severe economic losses to various markets across the globe. Various lockdowns and restrictions on the movement of the general population are expected to cause production losses and disruptions in supply chains in the market. Also, irregular migration due to the pandemic has caused a faltering in the workforces of the dominant players. These factors will lead to a decline in fulfilling pending orders.
List of Key Players Present in the Virgin Coconut Oil Market:
- Edward & Sons Trading Co (California, U.S.)
- Greenville Agro Corporation (Cebu City, Philippines)
- The Coconut Company (UK) Ltd. (London, U.K.)
- Healthy Traditions, Inc. (Texas, U.S.)
- Nutiva Inc. (California, U.S.)
- The Hain Celestial Group (New York, U.S.)
- MaxCare VCO (Karnataka, India)
- Celebes Coconut Corporation (Butuan City, Philippines)
- SC Global Coco Products Inc. (Mandaluyong City, Philippines)
- Barlean's (Washington, U.S.)
The research report contains various qualitative and quantitative insights into the market in terms of segments and sub-segments. Additionally, the study offers a detailed analysis of the types, end-users, market size, and growth rate for all prospects of the market. Various key insights are presented by following a comprehensive research methodology by highlighting mergers & acquisitions, regulatory scenarios, and ongoing industry trends. COVID-19 impacts on the market have been noted in the study.
Drivers & Restraints
Increasing Awareness and Growing Demand for Functional Foods to Bolster Growth
Increasing consumer awareness about health benefits coupled with rising medical applications will boost the market growth. Additionally, the product contains healthy fatty acids, vitamins, minerals, and antioxidants. These factors are expected to increase the footprint of the virgin coconut oil market growth to a larger extent. Growing demand for functional foods and rising trend of various trend diets, such as keto and paleo, will fuel the growth of the market. Rising usage among the pharmaceutical industry, especially by patients suffering from diabetes will increase the product usage leading to extended sales.
However, rising list of alternative products such as virgin olive oil, sunflower oil, almond oil, canola oil, and others that possess the same qualities is expected to hinder the growth of the market during the forecast period. Also, a high smoking point of the aforementioned oils makes them a better choice for baking and cooking solutions.
Asia Pacific to Hold the Largest Market due to Rising Acceptance of VCO
Rising acceptance of virgin coconut oil in Asia Pacific and rapidly increasing coconut plantations will lead the region toward the dominant market position during the forecast period. The region is deemed as the largest producer and consumer of coconut oil with India and the Philippines leading with the largest producers of coconut raw oil. Favorable government support in terms of highlighting the benefits will further cement the dominant position of the Asia Pacific virgin coconut oil market share.
Europe will contribute a significant share to the revenue, owing to rising consumer awareness and increasing availability of the products across health food stores and various supermarkets. Also, rising demand from various sectors such as cosmetics, food & beverages, and pharma products will fuel the market in the region.
Dominant Players to Focus on Novel Product Launches to Foster Market Growth
The dominant players in the industry are constantly striving for launching innovate products to address rising consumer’s demands. The market is expected to be highly fragmented due to constantly changing consumers’ demands. Various players are often adopting a strategy of mergers & acquisitions and collaborations to remain competitive. For example, in February 2020, QNET, launched Nutriplus Virgin Coconut Oil. This product has a wild natural aroma and is known for its antioxidant properties, medium chain fatty acids (MCFA), and its high content of lauric acid and capric acid.
Key Industry Development:
- April 2019: Marico Limited, one of India's leading FMCG company, launched a range of vegan gourmet products under the brand name Coco Soul. The range includes 100% organic virgin coconut oil, 100% natural virgin coconut oil, and 100% naturally infused variants of cold pressed virgin coconut oil.