Coconut Water Market

Coconut Water Market Size:

The global coconut water market size reached US$ 7.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 26.1 Billion by 2032, exhibiting a growth rate (CAGR) of 14.4% during 2024-2032. The market is primarily driven by increasing expenditure on healthy beverages, growing export opportunities, and increasing health awareness among consumers, who prefer natural and organic hydration options.

Coconut Water Market Analysis:

• Major Market Drivers: The increasing preference changes among health-conscious consumers and fitness enthusiasts toward healthier beverage options, growing demand for coconut water due to its natural hydration benefits, low calorie content, rich in electrolytes, and potassium.
• Key Market Trends: The emerging innovation in packaging formats, including convenient sizes like tetra packs and cans, catering to on-the-go consumption trends. Also, the growing popularity of flavored coconut water varieties, such as pineapple, mango, and lime are appealing to diverse consumer tastes.
• Geographical Trends: North America is among the leading markets due to the increasing awareness of health benefits and the easy availability of premium and organic varieties. Besides, Asia-Pacific remains a key region due to the abundance of coconut production and traditional consumption habits.
• Competitive Landscape: Some of the major market players in the coconut water industry include All Market Inc., Amy & Brian Naturals, C2O Pure Coconut Water LLC, Celebes Coconut Corporation, Edward & Sons Trading Co. Inc., Harmless Harvest Inc., PepsiCo Inc., Pulse Beverage Corp, The Coca-Cola Company, among many others.
• Challenges and Opportunities: Challenges include fluctuating coconut supply due to weather conditions impacting production costs and pricing. On the other hand, opportunities lie in expanding into emerging markets with rising disposable incomes, increasing health awareness, and diversifying product lines with new flavors and functional ingredients like probiotics.

Coconut Water Market Trends:

Increasing Health Consciousness:

Growing health consciousness among customers has affected what they eat, as seen by the increasing popularity of coconut water. According to the Centers for Disease Control and Prevention (CDC), alarming statistics in 2022, every U.S. state and territory recorded an obesity rate of over 20%, indicating that more than one in five persons were afflicted by obesity and related health concerns. For instance, the regions with the greatest obesity rates were the Midwest (35.8%) and South (35.6%), followed by the Northeast (30.5%) and West (29.5%). This has led customers to actively look for drinks that provide nutritional value without having too many calories like coconut water, which is naturally low in calories and high in electrolytes, thus increasing coconut water market growth.

Rising Consumer Spending on Healthy Beverages

According to the Bureau of Economic Analysis (BEA), the rising consumer spending particularly increased by $39.1 Billion, showing a 0.2% gain in April 2024. Additionally, personal income rose by $65.3 Billion in April, indicating a 0.3% gain from March 2024. There was a $40.2 billion, or 0.2%, increase in disposable personal income (DPI). This is a result of shifting consumer behavior brought about by increased awareness regarding the health advantages of natural and organic products like coconut water. As people become more aware of the nutritional value of their food and how it affects their long-term health and fitness, they are spending on healthy beverages like coconut water.

Growing Export Opportunities

According to the Philippine Coconut Authority, the primary market for coconut water was the United States, which accounted for 81,646.40 metric tons (MT), representing 58.45% of total global exports in 2022. Closely followed by the United Kingdom with 21,020.63 MT, Canada with 10,892.03 MT, the Netherlands with 7,827.44 MT, and Australia with 5,938.23 MT. Thus, this spike is due to the growing consumer awareness among consumers worldwide regarding the health advantages of coconut water. Globally, as people's awareness of their health increases, they are looking for natural substitutes for artificial hydrators and sugary drinks. Along with this, coconut water is regarded as a great hydration choice due to its natural electrolytes, low-calorie content, and lack of chemical additions. Hence, with this increased local demand and recognition, coconut water is now seen as a viable export good.

Coconut Water Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type, flavor, form, packaging, and distribution channel.

Breakup by Type:

• Sweetened
• Unsweetened
   

Sweetened accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes sweetened and unsweetened. According to the report, sweetened represented the largest segment.

Sweetened coconut water appeals to customers seeking a more enhanced taste profile that goes well with the naturally mild flavor of coconut water. It is immensely gaining traction among younger audiences and individuals with sweeter palates. Additionally, producers also add different tastes and sweeteners, which boosts the product's attractiveness and encourages customers to choose it over unsweetened versions, which are usually targeted at consumers who are health-conscious and seeking a natural, low-calorie hydration choice. The differentiation between these categories affects product development and marketing tactics in the larger coconut water sector as customer tastes change.

Breakup by Flavor:

• Plain
• Flavored
   

Flavored holds the largest share of the industry

A detailed breakup and analysis of the market based on the flavor have also been provided in the report. This includes plain and flavored. According to the report, flavored accounted for the largest market share.

Flavored coconut water is widely preferred by consumers, particularly among younger populations, for a wider variety of unusual tastes. In addition, flavored coconut water is frequently blended with a variety of other tropical fruits including lime, mango, and pineapple, offering a delightful and refreshing substitute for the more conventional plain coconut water. Flavored coconut water is becoming popular in established and emerging economies due to health-conscious customers looking for natural, low-calorie beverage alternatives that taste good and provide hydration benefits. Besides, key players are introducing innovative product variants to meet these needs. For instance, in April 2023, B Natural Juices & Beverages, a well-regarded brand under ITC Ltd., introduced packaged Tender Coconut Water throughout India. It comprises no added sugar and no artificial flavors. This introduction aims to offer consumers a refreshing and natural hydration option for the upcoming summer season.

Breakup by Form:

• Coconut Water
• Coconut Water Powder
   

Coconut water represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the form. This includes coconut water and coconut water powder. According to the report, coconut water represented the largest segment.

Coconut water is gaining immense popularity as a natural, hydrating beverage with minimal processing. Consumers prefer coconut water for its immediate consumption convenience, perceived health benefits, and natural electrolytes, which are marketed as an ideal drink for hydration and sports recovery. Ready-to-drink coconut water is also a popular option for casual drinking at yoga studios and gyms due to its ease. Its health advantages contribute to its growing popularity, which has led to a large amount of shelf space in supermarkets and health food stores worldwide. For instance, on 12 June 2023, the Vita Coco Company, Inc. and Bluestone Lane, presented their newest Coconut Water Cold Brew to celebrate the spirit of long summer days, which is exclusively available at the Bluestone Lane cafes and coffee shops.

Breakup by Packaging:

• Carton
• Bottles
• Others
   

Carton exhibits a clear dominance in the market 

A detailed breakup and analysis of the market based on the packaging have also been provided in the report. This includes cartons, bottles, and others. According to the report, cartons accounted for the largest market share.

Cartons have emerged as the dominant packaging due to their eco-friendly properties and effective preservation qualities that help maintain the freshness and natural flavor of coconut water. Additionally, the lightweight nature and ease of recycling cartons also appeal to environmentally conscious consumers, enhancing their popularity. Moreover, cartons are cost-effective for manufacturers and convenient for consumers, offering benefits like portability and ease of storage. Hence, this combination of environmental and practical benefits has propelled cartons to the forefront of coconut water packaging preferences, making them the preferred choice over bottles and other packaging options.

Breakup by Distribution Channel:

• Supermarkets and Hypermarkets
• Convenience Stores
• Online Retail Stores
• Others
   

Supermarkets and hypermarkets dominate the market

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes supermarkets and hypermarkets, convenience stores, online retail stores, and others. According to the report, supermarkets and hypermarkets represented the largest segment.

Supermarkets and hypermarkets emerging as the dominant segment. This is attributed to the widespread availability and convenience it offers to consumers looking for varied selections of coconut water brands under one roof. Additionally, supermarkets and hypermarkets often provide competitive pricing and frequent promotional deals, enhancing their appeal among price-sensitive consumers. As a result, supermarkets and hypermarkets have become pivotal in determining coconut water brands' market reach and visibility. For instance, in March 2023, Coconutea introduced a new line of six beverages to the coconut water market in the UK, filling a gap they identified for premium offerings. The product lineup includes six flavors, lemon, peach, pineapple, passionfruit, strawberry, and soursop, each offered at a recommended retail price (RRP) of £3.49 per bottle. Vivo Tea Company, the distributor and brand proprietor, introduced its brand to the UK market in March 2023, targeting various formats such as multiple retail outlets, independent luxury retailers, farm shops, delicatessens, and the hospitality and food service sectors.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest coconut water market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for coconut water.

North American market is attributed to the growing consumer preference for healthy, natural beverages over sugary drinks in countries like the United States and Canada. Additionally, the increasing awareness of the health benefits associated with coconut water, such as hydration, high electrolyte content, and low-calorie count, has significantly boosted its popularity. Moreover, the presence of key players in the North American market actively promoting coconut water as a trendy lifestyle choice furthers its appeal, making it a staple in many consumers' diets. This trend is supported by the expansive distribution networks and aggressive marketing strategies that cater to the health-conscious consumer base across the region. For instance, on 1 February 2023, NEW YORK, N.Y., Vita Coco and Captain Morgan launched their eagerly anticipated ready-to-drink lineup nationwide, promising to infuse summer vibes with three enticing flavors. The collaboration between the top-selling spiced rum brand and the leading coconut water brand introduces Vita Coco Spiked with Captain Morgan, a blend of flavorful Captain Morgan rum and refreshing Vita Coco coconut water, guaranteed to add a tropical twist to any occasion. Vita Coco Spiked with Captain Morgan is available in three tempting rum-based cocktails including Pina Colada, Strawberry Daiquiri, and Lime Mojito, each designed to be enjoyed straight from the chilled can.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the coconut water industry include All Market Inc., Amy & Brian Naturals, C2O Pure Coconut Water LLC, Celebes Coconut Corporation, Edward & Sons Trading Co. Inc., Harmless Harvest Inc., PepsiCo Inc., Pulse Beverage Corp, The Coca-Cola Company, etc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Key players in the coconut water market are actively bolstering market growth through strategic collaborations and acquisitions to expand their global footprint. They invest heavily in marketing to educate consumers about the health benefits of coconut water, positioning it as a superior hydration alternative to traditional sports drinks. Additionally, they focus on product innovation, introducing flavored varieties and combination beverages that blend coconut water with other health-centric ingredients. This approach diversifies their product offerings and caters to evolving consumer tastes and preferences, further driving market expansion. For instance, in March 2023, Harmless Harvest Inc. launched an organic coconut water infused with aloe pulp, formulated without any additional sugar.

Coconut Water Market News:

• February 2024: Inter Miami CF has unveiled a new partnership with 100 Coconuts, marking the club’s inaugural official coconut water collaboration. This collaboration aims to enhance the experience for fans by offering premium, nutrient-rich beverages. Co-branded cans were distributed as a premium giveaway for fans on March 30 at Chase Stadium. As Inter Miami continues to make its mark on the soccer scene in the United States and globally, 100 Coconuts stands out for its lifestyle-driven approach, providing pure coconut water that is non-GMO project certified, never from concentrate, and naturally sweetened with electrolytes.
• March 2024: Harmless Harvest proudly announces that their coconuts, essential for their refreshing beverages and smoothies, have achieved Bronze Level certification under the Regenerative Organic Certified program.

Coconut Water Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the coconut water market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global coconut water market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the coconut water industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.