The global coconut oil market is anticipated to grow at a significant CAGR of 7.1% during the forecast period. Coconut oil is a flavourless and colourless oil produced from dried or soft coconut kernels. According to Britannica, coconut oil is roughly 100 percent fat, with 90 percent of that being saturated fat. Coconut oil has 11 grammes of saturated fat per tablespoon. It doesn't have any cholesterol in it. Coconut oil offers the greatest quantities of lauric acid in a natural source. Lauric acid is a type of saturated fat present in coconut oil. According to studies, lauric acid flows to the liver and is turned into energy rather than being stored as fat, which could help with weight loss. 

Moreover, the American Heart Association suggests that you consume no more than 13 grams of saturated fat each day. The coconut oil market is hampered by excessive saturated fat, which can cause high cholesterol and increase the risk of heart disease and stroke. According to the Centers for Disease Control and Prevention, around 659,000 individuals die from heart disease in the United States each year, accounting for one out of every four deaths. Coconut oil is an effective moisturizer for skin and hair. Furthermore, increasing use of the coconut oil in personal care, cosmetics, chemical and food industry drive the coconut oil market in the forecasted period.

Impact of COVID-19 Pandemic on Global Coconut Oil Market

The COVID-19 pandemic had impacted most of the industries in the market. The spread of the virus led most governments across the globe to impose a lockdown that strictly restricted the uses of the outdoor shopping and shut down most of the transportation services for a while. All this led to a  increase in the demand of online grocery shopping, and production activities in the Coconut Oil market. Lockdown imposed stopped travelling activities across the globe. It caused market players a resistance in their regular sales. 

Segmental Outlook 

The global coconut oil market is segmented on the basis of type, source and applications. On the basis of types, the market is segmented into an RBD coconut oil, virgin coconut oil, and crude coconut oil. Virgin oOil market is expected to contribute significant market share owing to adoption of eco-friendly products across the globe. By source, the market is segmented into the wet coconut oil, and dry coconut oil. Based ony application industry, the market is segmented into the food & beverages, cosmetics & personal care, pharmaceuticals and other industry such as include the manufacture of soaps and detergents, shampoos, synthetic rubber, and glycerin. The cosmetics & personal care is expected to have a major market share due to the high application of Coconut Oil in skin care across the globe.

Global Coconut Oil  Market Share by Type, 2021 (%) 

The Virgin Coconut Oil Segment Anticipated to Hold the Prominent Share in the Global Coconut Oil Market

The virgin coconut oil segment is estimated to dominate the market with a prominent share of the market during the forecast period owing to the increasing preference from consumers concerned with health and wellness awareness across the globe. In comparison to RBD coconut oil, virgin coconut oil has a stronger coconut scent and flavour. It provides a number of benefits, including health benefits from the vitamins and antioxidants maintained, antibacterial and antiviral action from the lauric acid components, and simple digestion due to the presence of medium-chain fatty acids (MCFA). Coconut oil is used in a wide range of cosmetics and personal care products. Coconut oil is used as a replacement for mineral oil in moisturizers and it also has antiseptic effects. Virgin coconut oil has been widely used for the preparation of hair oil. It hydrates and softens the hair. The presence of fatty acids, vitamins, and minerals in the virgin cococnut oil nourish and restore the hair naturally.

Regional Outlooks

The global Coconut Oil market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East & Africa, and Latin America).  The market can be analyzed for a particular region or country level as per the requirement. North America is estimated to grow significantly while Europe holds the prominent share of the market during the forecast period. It is expected that the Asia-Pacific market will also show the highest growth rate during the forecast period owing to significant growth in the food & beverage, cosmetic & personal care, and pharmaceutical in the region. North America and Europe are also expected to have a significant market due to well-developed industries along with higher adoption of Coconut Oils in these regions. For instance, in January 2022 US Coconut Oil exports accounted up to $7.31M and imports accounted up to $160M, resulting in a negative trade balance of $153M. Between January 2021 and January 2022 the exports of US Coconut Oil have increased by $1.61M (28.3%) from $5.7M to $7.31M, while imports increased by $56.7M (54.9%) from $103M to $160M.

Global Coconut Oil  Market Growth, by Region 2022-2028

The Asia-Pacific Region Estimated to Grow Fastest in the Global Coconut Oil Market

The Asia- Pacific region is projected to grow fastest during the forecast period. Owing to the increasing number of coconut crops and consumption in the region. Furthermore, the area has the highest production and consumption of virgin coconut oil, which contributes considerably to the market's regional expansion. Due to the existence of tropical regions and the fact that coconut farming is a fun pastime, Asia is the greatest consumer of coconut oil. India, Indonesia, and the Philippines are the primary producers of coconut oil. However, even in countries like the United States, the demand for coconut oil has increased. The coconut oil market in Asia Pacific is growing at a rapid pace, owing to consumer awareness of the advantages of coconut and the traditional use of coconut products.

Market Players Outlook

The major companies serving the global Coconut Oil market Adani Group, Cargil, Incorp., Greenville Agro Corp., Marico, Windmill Organics, ADM, Bunge Ltd., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in July 2019, Bunge has announced the launch of a new edible oil processing plant in China. The new facility, which is located in Xiamen, Fujian Province in Southern China, extends the company's capabilities to offer plant-based speciality oils and fats ingredients to the food and foodservice industries in China, in order to content expanding demand.

The Report Covers

• Market value data analysis of 2021 and forecast to 2028.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global Coconut Oil market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.