Coconut Butter Market Outlook from 2024 to 2034

The global coconut butter market is estimated to be worth USD 253.5 million in 2024 and is projected to reach a value of USD 576.2 million by 2034, expanding at a CAGR of 8.6%.

Sales of coconut butter have exhibited a spike over the past few years, as consumers seek alternatives to dairy butter. Coconut margarine is becoming very popular among health-conscious consumers because it has many nutritional benefits.

Millennials are adopting coconut butter widely due to increased health awareness. This butter is used in soups, curries, cakes, chocolates, and sauces, boosting industry growth. It is a new trend in breakfast meals, replacing regular milk butter due to its health benefits like maintaining good cholesterol and improving brain functions.

Coconut spread’s rich texture and nutritional benefits make it an ideal alternative in cooking and baking, appealing to those avoiding animal products. This particularly has a strong influence among those with dietary restrictions, further boosting its industry presence.

Attributes Description
Estimated Global Coconut Butter Market Size (2024E) USD 253.5 million
Projected Global Coconut Butter Market Value (2034F) USD 576.2 million
Value-based CAGR (2024 to 2034) 8.6%

Increased consumer interest in healthy eating has led to a big surge in sales. Coconut butter is in high demand due to its natural sweetness and flavor. It helps stabilize blood sugar levels and removes toxins from the body. People use it to encourage weight loss because it is high in fiber. These factors are expected to support the growth of the global coconut butter market.

Organic and gluten-free coconut butter is also becoming more popular among consumers. Organic coconut butter is high in fiber and contains lauric acid, which lowers bad cholesterol. It is also used as a natural ingredient in cosmetic products.

The industry is also growing due to its use in the cosmetic industry. Coconut spread offers nutritional and physiological benefits. It is used in beauty care as a cosmetic and supplement. Dermatologists have shown that coconut spread helps with several issues. Coconut butter is used in sunscreen, serums, shampoos, body lotions, and hair conditioners.

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Key Industry Highlights

Coconut Butter is the New Favorite for Gluten-free and Allergy-friendly Baking

The increasing awareness of food allergies and gluten intolerance has remarkably boosted the coconut butter market. Consumers seeking gluten-free and allergy-friendly alternatives are turning to coconut spread for its safe and versatile properties. It serves as an exceptional alternative to traditional dairy butter, which provides a rich, creamy texture and enhances the flavor of baked goods.

Coconut spread is naturally gluten-free, which makes it ideal for those with celiac disease or gluten sensitivity. This is further fueled by the rise in home baking, as individuals experiment with healthier, allergy-friendly ingredients to create delicious and safe treats for all.

Coconut Butter Emerges as Top Choice for Skincare and Hair Care

The DIY beauty trend is driving increased use of coconut spread in homemade skincare, hair care, and body care treatments. Consumers enthusiastic about personal care appreciate coconut spread for its natural moisturizing and nourishing properties, making it a popular ingredient in DIY recipes. Its versatility allows it to be used in various formulations, such as face masks, hair conditioners, and body lotions.

Consumers are attracted to the cost-effectiveness and customizability of creating their beauty products. The rise of online tutorials and social media influencers showcasing DIY beauty recipes further fuels this trend, encouraging more consumers to include coconut butter in their personal care routines.

In-store and Online Promotions Make Coconut Butter a Shopper's Favorite

Regular promotional activities in supermarkets and eCommerce platforms substantially boost the sales of coconut butter. Offering discounts and special promotions makes coconut spread more appealing to budget-conscious shoppers, encouraging them to try it for the first time.

In-store tastings provide a direct sensory experience, which allows customers to sample coconut spread and discover its distinctive flavor and texture. This can drive immediate purchases.

These promotional efforts not only increase impulse buys but also help in educating consumers about the product's versatility and benefits. As a consequence, more buyers become aware of coconut spread and its uses, leading to a broader client base and increased industry penetration.

2019 to 2023 Global Coconut Butter Sales Analysis Compared to Demand Forecasts for 2024 to 2034

The global coconut butter market progresses at a CAGR of 5.7% from 2019 to 2023. For the next ten years, projections are that sales are likely to rise at 8.6% CAGR

As more individuals explore and enjoy Southeast Asian and Caribbean dishes, which frequently feature coconut products, coconut spread is leading it to become a sought-after ingredient for home cooks and professional chefs. These cuisines are celebrated for their rich, exotic flavors and health benefits, encouraging consumers to recreate authentic recipes at home.

Cooking shows, food blogs, and social media influencers showcasing these vibrant culinary traditions further amplify interest. This cultural culinary diversity is driving the demand, making it a staple in many kitchens worldwide.

Coconut spread is gradually advertised for its potential benefits in weight management and energy provision, which is further attracting health-conscious consumers.

Rich in medium-chain triglycerides (MCTs), which are known to boost metabolism and promote fat-burning, coconut spread is seen as a valuable addition to a balanced diet. Its satiating properties help reduce hunger, making it easier for individuals to manage portion control and reduce overall calorie intake.

The steady energy release from MCTs supports sustained physical activity and mental alertness. This dual appeal of weight management and energy enhancement makes coconut spread a popular choice among those seeking a healthier lifestyle and pushing global coconut spread sales growth.

Niche marketing through online stores specializing in health foods or natural products offers a strategic advantage for promoting coconut spread. These platforms attract health-conscious consumers especially those seeking organic and natural alternatives. This makes it easier to highlight coconut spread's unique benefits.

By focusing on this targeted audience, such stores can create specific marketing campaigns that emphasize the product's nutritional value, versatility in recipes, and health benefits.

Niche online stores frequently provide detailed product descriptions, customer reviews, and educational content, which strengthen consumer’s trust and engagement. This focused approach is driving higher conversion rates and customer loyalty, boosting coconut butter sales effectively.

Nandini Roy Choudhury
Nandini Roy Choudhury

Principal Consultant

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Market Concentration

Private labels and local brands in the coconut butter market represent an important segment that suits cost-conscious consumers who are searching for health-focused and natural products. These brands are typically offered by retailers who source coconut spread from manufacturers and package it under their labels.

By doing this, retailers can control pricing, quality, and branding, and often offer more affordable alternatives compared to branded products. This approach allows them to meet the growing demand without compromising on quality or consumer preferences for organic, non-GMO, and sustainable options.

Private label and local brands like, The Kerela Store, Earth's Finest, Dhatu Organics & Naturals, and Jiva Organics also benefit from the trust consumers place in the retailer's reputation, leveraging their established customer base and retail presence. They play an important role in expanding the accessibility of coconut spread in supermarkets, hypermarkets, and specialty stores, thereby increasing overall industry penetration.

Comparative Sector Overview

The below section offers a comprehensive evaluation of two interrelated industries. These include the global coconut sugar industry and the global coconut flour industry. It dissects the distinctive characteristics of each sector, encompassing their respective CAGRs while also delving into the pivotal factors that exert influence on their growth trajectories.

They share common raw materials and production processes with coconut spread, influencing the dynamics of the studied industry. Positively, growth in these industries can create synergies, boosting demand for coconut-based products overall. However, negative impacts like supply shortages or price fluctuations in these sectors can affect the coconut butter market negatively.

Stakeholders can benefit from understanding these interdependencies. They can do this by diversifying product offerings. This helps in securing a stable supply chain across these coconut-derived markets, thus mitigating risks and maximizing opportunities for profitability in the studied industry.

Coconut Sugar Industry Assessment:

The coconut sugar industry is growing due to the rising popularity of functional foods and beverages offering health benefits. There is a key opportunity for partnerships with established food and beverage brands to boost demand and visibility. Key trends include an increasing demand for convenient, ready-to-eat products with healthier ingredients, such as coconut sugar, in items like energy bars, snacks, and ready-made sauces.

Attributes Description
Related Industry Coconut Sugar Industry
CAGR (2024 to 2034) 3.6%
Growth Factor Increasing consumer demand for natural and healthier alternatives to refined sugar
Opportunity Product diversification into coconut sugar-based snacks, beverages, and condiments
Key Trends Shift toward premium and flavored varieties of coconut sugar to appeal to niche markets

Coconut Flour Industry Assessment:

The coconut flour industry is growing due to the rising prevalence of gluten intolerance and celiac disease and increasing demand for gluten-free baking alternatives. Expanding coconut flour's presence in mainstream supermarkets and hypermarkets will enhance accessibility and consumer awareness. Key trends include a focus on sustainability, with coconut flour produced through ethical practices attracting environmentally conscious consumers.

Attributes Description
Related Industry Coconut Flour Industry
CAGR (2024 to 2034) 7.8%
Growth Factor Rising demand for natural and plant-based ingredients in food products
Opportunity Expansion into the bakery and confectionery sectors as a gluten-free ingredient
Key Trends Increasing use of coconut flour in savory dishes and snacks beyond traditional baking

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Country-wise Insights

The table below highlights growth rates of the industry in key countries. The United States and United Kingdom are predicted to remain top when it comes to industry size. However, India and China are set to exhibit high coconut butter consumption, recording CAGRs of 7.2% and 6.5%, respectively, through 2034.

Countries CAGR 2024 to 2034
United States 5.4%
United Kingdom 6.2%
China 6.5%
India 7.2%
Japan 6.3%

Coconut Butter Sales in the United States Surge with Rise of Paleo and Keto Diets

The coconut butter market in the United States is projected to exhibit a CAGR of 5.4% during the assessment period. By 2034, revenue from the sales of coconut butter in the country is expected to reach USD 70.9 million.

In the United States, the popularity of paleo and ketogenic diets has tremendously boosted the demand. These diets emphasize high-fat and low-carbohydrate intake, making coconut spread an ideal choice due to its rich content of healthy fats and minimal carbs. Consumers on these diets seek alternatives to traditional high-carb and processed foods, and coconut spread offers a natural, nutrient-dense option that aligns with their dietary requirements.

The paleo diet focuses on whole foods similar to those consumed by early humans, while the ketogenic diet aims to induce ketosis by reducing carb intake. Coconut spread's creamy texture and versatile use in cooking, baking, and as a spread further enhance its appeal among health-conscious individuals in the United States.

Rising Vegan and Vegetarian Population in India Drives Demand for Coconut Butter

Coconut butter demand in India is estimated to rise at a value CAGR of 7.2% during the forecast period. By 2034, India’s coconut butter market is expected to account for USD 40.9 million valuation.

In India, the increasing adoption of plant-based diets is driven by the rising interest in vegetarianism and veganism, which is significantly boosting the demand. As more consumers seek alternatives to dairy products due to ethical, health, or dietary reasons, coconut spread is emerging as an appealing alternative. Its creamy texture and rich flavor make it a versatile substitute in various traditional and contemporary Indian dishes, from curries to desserts.

Coconut spread goes well with dietary preferences that avoid animal products while offering nutritional benefits such as healthy fats. This reflects a wider shift toward sustainable and health-conscious eating habits among Indian consumers, supported by the traditional acceptance and versatility of coconut-derived products in Indian cuisine.

Cultural Emphasis on Skincare in China is Encouraging Use of Coconut Butter

Adoption of coconut butter in China is projected to increase at a value CAGR of 6.5% over the next ten years. By 2034, the coconut butter market is forecasted to reach USD 53.6 million in China.

There is a strong cultural emphasis on skincare and beauty rituals, which has led to a preference for natural and effective beauty products in China. Coconut spread’s inclusion in skincare, hair care, and cosmetic formulations goes ideally with this preference.

It is valued in beauty routines for promoting hydration and softness. Its natural origins appeal to consumers who prioritize ingredients that are gentle yet effective, and they often seek products that minimize the use of harsh chemicals.

As consumers increasingly prioritize sustainability and holistic wellness in China, coconut spread's presence in beauty products resonates by offering a natural alternative that supports both personal care and environmental consciousness.

Category-wise Insights

Use of coconut butter in dietary supplements are projected to register a CAGR of 5.2% from 2024 to 2034. The dietary supplements segment is anticipated to account for 21.4% industry share in 2024. The online retailers segment is anticipated to advance at 5.2% CAGR during the projection period. In 2024, online retailers are expected to account for 38.6% of the coconut butter market share.

Coconut Butter Gains Traction in Dietary Supplements for Gut Health

Segment Dietary Supplements (End-use Application)
Value Share (2024) 21.4%

Coconut butter's popularity in dietary supplements is bolstered for having the presence of lauric acid, which is known for its antimicrobial properties. These properties support gut health by combatting harmful bacteria and promoting a balanced microbiome, essential for digestive wellness.

Coconut spread's versatility allows for a seamless combination of various supplement formulations, including capsules, powders, and shakes. Its addition not only enriches the nutritional composition of supplements with beneficial fats and micronutrients but also contributes a delightful taste and texture.

This adaptability makes coconut spread a favored choice among manufacturers aiming to enhance the efficacy and palatability of their products while appealing to health-conscious consumers, who are seeking natural and functional ingredients in their dietary supplements.

Online Retailers Redefine Coconut Butter Shopping Experience with Broad Selection

Segment Online Retailers (Sale Channel)
Value Share (2024) 38.6%

The rapidly growing popularity of online retailers is linked to the easy availability of products on these platforms. Online retailers provide consumers with easy access to a wide range of products as compared to traditional retailers. These offer convenience and accessibility to consumers, allowing them to browse and purchase a wide range of coconut butter from the comfort of their homes.

This diverse selection option allows consumers to explore different brands, formulations, and price points, empowering them to make informed choices that best suit their needs and preferences. Convenient delivery options, including home delivery and express shipping, make it easy for consumers to receive their products on time.

Competition Outlook

The coconut butter market encompasses a diverse and dynamic competitive landscape. Several brands have emerged as leaders by implementing various strategies. Aethon International focuses on premium quality and sustainable sourcing. The Kerela Store emphasizes traditional methods and local sourcing.

Wichy Coconut stands out with innovative packaging and a focus on health benefits. Urban Platter utilizes online platforms for wide reach and customer engagement. Butters & More differentiates through organic ingredients and small-batch production.

Wildly Organic emphasizes organic certifications and ethical sourcing practices. Cocofina targets health-conscious consumers with natural ingredients and nutritional benefits. Royal Nut Company focuses on gourmet flavors and premium positioning.

Veda Oils emphasizes purity and therapeutic properties. Earth's Finest promotes sustainability and fair trade practices. The Chattanooga Butter Company highlights artisanal craftsmanship and unique flavor profiles. Dhatu Organics & Naturals offers a range of organic and natural options. Jiva Organics focuses on purity and traditional recipes.

OhMega emphasizes health benefits and nutritional value. Georgia Grinders differentiates through small-batch production and quality control. Ceylon Coconut Company stands out with high-quality Ceylon coconut sourcing and authentic flavors.

Leading Coconut Butter Brands

  • Aethon International
  • The Kerela Store
  • Wichy Coconut
  • Urban Platter
  • Butters & More
  • Wildly Organic
  • Cocofina
  • Royal Nut Company
  • Veda Oils
  • Earth's Finest
  • The Chattanooga Butter Company
  • Dhatu Organics & Naturals
  • Jiva Organics
  • OhMega
  • Georgia Grinders
  • Ceylon Coconut Company
  • Others

Key Segments of Market Report

By End-use Application:

As per end use application, the industry has been categorized into food & beverages (baked goods, beverages, smoothies, sauces, salad dressing), personal care (skin care, hair care, body care, dental care, feminine care), and dietary supplements.

By Sales Channel:

This segment is further categorized into indirect sales, and direct sales (online retailers, specialty stores, supermarkets/hypermarkets).

By Region:

Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East and Africa.

Frequently Asked Questions

What is the current value of the coconut butter market?

The global industry is estimated at USD 253.5 million in 2024.

At what rate did the industry grow between 2019 and 2023?

Sales increased at 5.7% CAGR between 2019 and 2023.

Who are the key manufacturers?

Aethon International, The Kerela Store, Wichy Coconut, and Urban Platter.

Which region will garner a significant value share by 2024?

South Asia is projected to hold a revenue share of 34.7%.

What share does North America account for in 2024?

North America holds a 26.1% share of the global industry.

Table of Content

1. Executive Summary

2. Industry Introduction, Including Taxonomy and Market Definition

3. Market Trends and Success Factors, Including Macro-economic Factors, Market Dynamics, and Recent Industry Developments

4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections

5. Pricing Analysis

6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034

    6.1. End Use Application

    6.2. Sales Channel

    6.3. Region

7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by End Use Application

    7.1. Food & Beverages

        7.1.1. Baked Goods

        7.1.2. Beverages

        7.1.3. Smoothies

        7.1.4. Sauces

        7.1.5. Salad Dressing

    7.2. Personal Care

        7.2.1. Skin Care

        7.2.2. Hair Care

        7.2.3. Body Care

        7.2.4. Dental Care

        7.2.5. Feminine Care

    7.3. Dietary Supplements

8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Sales Channel

    8.1. Indirect Sales

    8.2. Direct Sales

        8.2.1. Online Retailers

        8.2.2. Specialty Stores

        8.2.3. Supermarkets/Hypermarkets

9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region

    9.1. North America

    9.2. Latin America

    9.3. Europe

    9.4. East Asia

    9.5. South Asia

    9.6. Oceania

    9.7. Middle East and Africa

10. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

11. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

12. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

13. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

14. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

15. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

16. Oceania Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

17. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries

18. Sales Forecast 2024 to 2034 by End Use Application, and Sales Channel for 30 Countries

19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard

20. Company Profile

    20.1. Aethon International

    20.2. The Kerela Store

    20.3. Wichy Coconut

    20.4. Urban Platter

    20.5. Butters & More

    20.6. Wildly Organic

    20.7. Cocofina

    20.8. Royal Nut Company

    20.9. Veda Oils

    20.10. Earth's Finest

    20.11. The Chattanooga Butter Company

    20.12. Dhatu Organics & Naturals

    20.13. Jiva Organics

    20.14. OhMega

    20.15. Georgia Grinders

    20.16. Ceylon Coconut Company

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