Desiccated Coconut Market: Trends, Growth & Future Outlook

Overview of the market of desiccated coconut

The global desiccated coconut market is experiencing strong growth, driven by the rising demand for natural and unprocessed food products. As consumers become more health-conscious and opt for organic, clean-label products, desiccated coconut has gained significant attention. Learn more about how quality and safety in production play a crucial role in this industry by reading this piece on ensuring quality in desiccated coconut production.

Market Size and Growth

The global desiccated coconut market was valued at approximately US$4.5 billion in 2023 and is projected to reach US$7.8 billion by 2032, growing at a CAGR of 6.5%. This growth highlights the increasing awareness of coconut’s health benefits and the demand for natural ingredients.

By 2024, the desiccated coconut market is estimated to reach US$9.77 billion, with a CAGR of 3.6% from 2025 to 2030. This demand is especially strong in developed markets, including North America, Europe, and parts of Asia, driven by the trend toward healthy, natural foods.

To explore the key coconut-exporting countries and the current market landscape, check out this detailed analysis.

Key Growth Drivers

• Natural Food Demand: Consumers are increasingly seeking unprocessed and natural foods like desiccated coconut, which offers all-natural ingredients without preservatives.
• Organic and Clean-Label Trends: Desiccated coconut is becoming a key ingredient in organic and clean-label products, fueling market growth, particularly in snacks, processed foods, and home-cooked meals.
• Health and Wellness: High in healthy fats, fiber, and vitamin E, desiccated coconut is ideal for health-conscious diets like keto and paleo. This has opened up significant opportunities for product innovation. 

To discover the full range of uses of desiccated coconut and its health benefits, visit this article.

With promising growth, manufacturers of desiccated coconut have an excellent opportunity to expand, particularly in regions focused on natural and organic foods, such as North America, Europe, and developed markets in Asia. The quality and natural appeal of desiccated coconut from major producing countries, including Vietnam, the Philippines, and Indonesia, will continue to support this growth.

Global Desiccated Coconut Import Trends

Strong Growth (2014-2021)

From 2014 to 2021, the desiccated coconut market experienced steady growth. In 2014, global imports reached 420,373 tons, and by 2021, this figure increased to 517,302 tons, marking a 23% growth.
The main drivers of this growth include:

• Demand for natural ingredients: Increasing global consumer preference for plant-based foods, which are seen as healthier alternatives to animal fats.
• Food and confectionery industry: Desiccated coconut is commonly used in the production of cakes, candies, and jams, all of which saw rising demand in the rapidly growing food industry.

Import Decline (2022-2023)

After the growth peak in 2021, the global desiccated coconut import market saw a significant decline in 2022 and 2023:

• 2022: Global imports fell to 466,941 tons, a decrease of 9.7% compared to 2021.
• 2023: Forecasted to decrease further to 405,297 tons, representing a 13% drop from 2022.

Main Reasons:

• Declining demand in major markets:
  • EU27: Imports are expected to fall by 20%, from 118,291 tons in 2022 to 94,763 tons in 2023.
  • United States: Imports are expected to decline by 22%, from 54,372 tons in 2022 to 42,405 tons in 2023.
• Global economic pressures: Rising inflation and living costs have reduced consumer spending, especially on non-essential goods.

Desiccated Coconut Prices in Major Producing Countries

Price Decline (2023)

In 2023, prices of desiccated coconut in major producing countries decreased significantly:

• Philippines: Average price dropped to USD 1,787/ton, a 27% decrease from 2022.
• Indonesia: Price fell to USD 1,431/ton, a 21% decrease.
• Sri Lanka: Price dropped to USD 1,614/ton, a 14% decrease.
  The price decline is largely attributed to weak import demand from major markets like the EU and the United States.

Price Recovery in 2024

As global demand begins to recover and supply tightens, prices in major producing countries are expected to rise in 2024:

• Philippines: Price is expected to reach USD 1,911/ton, a 4.5% increase year-over-year.
• Indonesia: Price is forecasted at USD 1,999/ton, reflecting a 35.6% increase.
• Sri Lanka: Price is anticipated to rise to USD 2,050/ton, a 30.5% increase.
• Vietnam: The price of desiccated coconut in Vietnam fluctuates between USD 1,300 – 1,500/ton, offering a competitive advantage compared to other major producing countries.

Main Consumption Markets: EU and the United States

European Union (EU27): The EU remains the largest importer of desiccated coconut globally, showing consistent growth from 2014 to 2022:

• 2014: 103,376 tons.
• 2022: Peaked at 118,291 tons.
• 2023: Imports decreased slightly to 112,288 tons, attributed to lower consumer demand. Despite this, the EU remains a key market due to its growing interest in sustainable and health-conscious products.

United States: The US market has shown a more volatile trend, with declining imports in recent years:

• 2014: 52,259 tons.
• 2023: Imports are forecast to fall to 42,405 tons, a 19% decrease from 2014. The decline is due to competition from substitute products and economic challenges impacting consumer spending.

Overall, while global imports of desiccated coconut have slowed in recent years due to various economic pressures, the market remains promising, with key regions like the EU and the US continuing to be important players despite temporary setbacks.

Although the global desiccated coconut market has faced some recent challenges, such as declining import demand in key markets and falling prices in major producing countries, the growth potential remains promising. The expected recovery in 2024, combined with the ongoing trend of natural and organic foods, will continue to drive the industry’s expansion. Producers in Vietnam, the Philippines, and Indonesia, with their competitive product quality, have a strong opportunity to leverage this growth and solidify their positions in the global market.

See more: 

• Dried Coconut Development in Vietnam: Driving Export Growth
• Top Coconut Exporting Countries: Market Landscape