Coconut, for almost half a century, has been viewed as a dying commodity of an industry in decline. But the humble coconut staged a strong comeback as a commercially viable product. The reason attributed to its comeback is bold initiatives and innovative approaches taken by industry participants particularly in the area of global processing and heavy investment in technology adoption and upgrades leading to the increased capacities of factories worldwide for higher throughput.
Most enterprises, due to embracing technology changes, were able to increase capacity that helped process 4 million coconuts per day; they are already operating at 50 per cent of that capacity. There has been an increase in the number of coconut products, which is at present 120, from just about 30 products some 15 years ago.
The combined export value of coconut and coconut products has hit the $10billion mark already. Of this, kernel exports for commercial use accounted for $5.6 billion, water $2.7 billion, husk $0.24 billion and shell $0.87 billion. Products like virgin coconut oil, coconut water and coconut sugar hold a lot of promise for the future. India and Indonesia currently are the bigger consumers of coconut products accounting for almost 80 per cent, whilst exporting only 20 per cent.
The global export volumes have grown exponentially in the last few years, with newer and higher-value products available on the international markets, both in edible as well as non-edible categories. All said coconut oil still forms only a small segment in the vegetable oils category at 1 per cent share, putting it last in the table with olive oil, though the coconut oil market is expected to hit USD 8,403.3 million by 2025 at a remarkable 6.37% CAGR during the forecast period between 2018 and 2025, according to a research study done by Market Research Future (MRFR).