Market Trends of Coconut Oil Industry
This section covers the major market trends shaping the Coconut Oil Market according to our research experts:
Increasing Demand for Coconut Oil in Personal Care Segment
Coconut oil and other coconut-based products have been perceived as a healthy ingredient for beauty enhancement by communities all around the world, especially in tropical and coastal regions, which in turn has influenced the manufacturers to use coconut oil as a staple ingredient in cosmetic and personal care products. Moreover, cosmetics infused with virgin coconut oil are widely accepted as modern consumers are increasingly inclined towards organic and vegan skincare and hair care solutions. As a result, many personal care brands are replacing mineral oil with coconut oil in their cosmetics and personal care products range as coconut oil consists of triglycerides, combined with stable saturated medium-chain fatty acids (lauric acid, C10 capric acid, and C8 caprylic acid) with the same occlusive and hydrophobic characteristics that mineral oil has. Further, the antiseptic properties of coconut oil due to the lauric acid have promoted it as a staple ingredient in lip balms, shampoo, soaps, and moisturizers in recent years. Besides, coconut oil is a natural moisturizer, it locks the moisture of lips and makes them soft and supple, thereby, manufacturers are engaged in manufacturing coconut oil-based lip care products. For instance, in June 2022, REM beauty, the beauty brand owned by American actress Ariana Grande launched a new product called Essential Drip Lip Oil, featuring coconut oil for lip hydration and glossy shine.
Asia-Pacific is the Largest Market
Coconut and coconut-based products are being used as one of the most common ingredients for various food and beverage products across the Asia-Pacific region. For instance, in South India, there are several private label snack brands that specialize in savory snacks fried in coconut oil. Furthermore, increasing consumer awareness about the health benefits associated with plant-based food is driving the application of coconut oil in the packaged food industry. Moreover, coconut oil has been widely preferred to enhance skin and hair health since ancient times in the culture of Asian countries including India, Indonesia, and Thailand, among others. Furthermore, the government across key countries is promoting the expansion of coconut oil processing capacity to cater to rising demand across application industries. For instance, in February 2021, the Japanese government provided a grant of USD 66,648 through the Grant Assistance for Grassroots Human Security Projects (GGP), for a project for the installation of coconut oil production facilities in the Mullaitivu district. Thus, the rising coconut oil demand from end-use industries to formulate the products as per evolving consumer preferences for vegan and organic cosmetics, personal care products, and packaged food is expected to boost the growth in Asia pacific coconut oil market.
