The coconut butter market was worth USD 253.5 million in 2024. In 2025, demand for coconut butter was recorded, reaching a market size of approximately USD 274.0 million. Global sales during 2025 to 2035 are expected to witness 8.6% CAGR, crossing total revenue of USD 624.7 million in end year of 2035.
Increasing preference towards plant-based fit and dairy-free options, has catalyzed the growth of coconut butter market. As a result, coconut butter serves as a healthy alternative to dairy-based products for a wide range of cooking and baking applications due to its versatile product functionality and creamy texture with subtle coconut flavor notes. As the consumers are becoming much health concern so the demand for the coconut-based products is also increasing as they are considered a healthy and sustainable alternative
The coconut butter market is all these things and more, from the popularity of veganism and organic food as trends to demand for clean label products.
| Attribute | Description |
|---|---|
| Estimated Size (2025E) | USD 274.0 million |
| Projected Value (2035F) | USD 624.7 million |
| Value-based CAGR (2025 to 2035) | 8.6% |
Dairy free and plant base foods are gaining traction in the coconut butter market signifying high demand in North America followed by Europe. Market growth in such regions as Asia-Pacific will also contribute to such growth due to the rising middle-class population and increasing health awareness of the benefits of coconut-based products. The demand for clean, nutritious, and versatile food ingredients has led companies to develop premium coconut butter products such as organic and flavored variants.
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The below table gives a comparator for the CAGR variance over a six month gap for 2024 (base year) and 2025 (current year) which plays a key role in establishing the changes over the two quarters for tracking the changes along with an analysis on each brand's movement in the coconut butter market during this period.
| Particular | Value CAGR |
|---|---|
| H1 (2024 to 2025) | 8.2% |
| H2 (2024 to 2025) | 8.0% |
| H1 (2025 to 2035) | 8.4% |
| H2 (2025 to 2035) | 8.8% |
The market is anticipated to grow at a compound annual growth rate (CAGR) of 8.4% in H1 2025 and 8.8% in H2 2025. H1 shows a 15 BPS increase over the 2024 baseline, while H2 indicates a marginally stronger 20 BPS increase, highlighting healthy momentum on the market, thanks to the growing consumer preference towards healthier and plant-based alternatives.
Tier 1: These include major players with high revenue generation, large market coverage, and high brand equity. These companies are known for their quality products, distribution, and significant investment in marketing and innovation. Aethon International and Cocofina are archetypes in this Tier.
Aethon International is a leading manufacturer which offers a wide range of coconut products with high quality and sustainable initiatives. Similarly, Cocofina, known for its premium coconut butter, is ethically farm-sourced and is available in several global markets. These companies tend to lead, shaping trends, markets, and premium offerings by being innovators.
These Tier 2 players are majorly entrenched but with a more regional than global reach. While they may not have the level of distribution or brand power you associate with Tier 1 players, these companies offer quality coconut butter. The Kerala Store and Urban Platter fall in this tier.
The Kerala Store achieved fame for its pure, genuine coconut products, catering to health-conscious customers in search of quality, organic ingredients. In contrast, Urban Platter likes to cater to health-friendly and vegan customers with its gourmet line of coconut butter products. The market has diversified and they have benefited by providing different products catering to the needs of different consumer segments and capitalize on the growing demand for organic and natural food.
The Third tier is made up of the newer and smaller companies that are growing at an accelerated rate from unique products, niche markets, and innovative business methods. This tier includes brands like Wichy Coconut, Butters & More and Wildly Organic.
While these companies might not yet have a large global spread, they are still establishing themselves with niche, high-quality products in the coconut butter market. Wichy Coconut makes organic, raw coconut butter and is eco-conscious. Butters & More specializes in all-natural coconut butter and nut butters for the health-obsessed consumer.
Wildly Organic, which emphasizes sustainability and organic sourcing, appeals to eco-conscious consumers. These companies typically scale through direct-to-consumer models - many affordably leveraging social media to boost visibility and engage with consumers directly.
Plant-Based Alternatives - Rising Demand
Shift:As consumers move further in the direction of plant-based diets, the demand for plant-based alternatives to dairy products has also been increasing. Made from the flesh of coconuts, coconut butter is gradually being touted as a healthier alternative to conventional butter. The growing trend towards plant-based offerings stems from dietary preferences in addition to health reasons: Just as coconut butter is seen as a potentially healthier fat than traditional butter. The growing popularity of tahini among vegans and non-vegans alike can be attributed to this versatile ingredient's wide range of applications in baking, cooking, and as a spread.
Strategic Response:Nutiva, a top brand in the coconut butter arena, has seized on this demand and marketed its coconut butter as a dairy butter replacement. The company’s emphasis on organic, non-GMO products has also enhanced its appeal to health-concerned consumers. Gently Pressed Coconut Butter from Artisana Organics has also established itself as a leader in the field with its raw, organic variety without preservatives, catering to the increasing consumer demand for clean-label plant-based substitutes. This strategic positioning has enabled both brands to substantially expand their market share within the widening plant-based food category.
Coconut-Based Products Gaining Popularity
Shift:With well-established products of coconut oil, coconut milk, coconut water, other coconut products have caught up the popularity in the global market. Consumer interest in coconut as a superfood is translating into increased popularity for coconut butter coconut butter is benefiting from this increasing acceptance with consumer realization of the health benefits coconut offers. With MCTs, lauric acid, and healthy fats, coconut butter is very nutrient-dense, so it can easily fit into the diets of health-conscious consumers interested in eating natural products. The popularity of coconut is also on the rise due to its versatility in both sweet and savory applications.
Strategic Response:The trend has not been lost on Coco June, a popular coconut butter brand that has expanded its offerings since launching to include coconut yogurt and coconut oil in addition to coconut butter. Tapal Green Tea highlights the usage of organic coconuts, targeting the environmentally friendly market. Kara Coconut, another upstart, is marketing coconut butter in flavors to suit a broader range of cooking applications. These brands have capitalized on its growing consumer traction by widening the product portfolio and broadening flavors, which have increased market penetration to a significant level.
Increase on E-commerce and Direct-to-Consumers Channels
Shift:E-commerce is emerging as a vital contributor to the coconut butter market growth Consumers can find numerous brands and products of coconut butter now available for purchase online through retailers such as Amazon, Whole Foods and other specialty stores. With the ease of shopping online and comparing prices and ingredients at the click of a button, coconut butter popularity has grown with a tech-savvy, digitally connected audience. Models such as this direct-to-consumer - whether via brand websites or subscription services - have also allowed for more information on customers.
Strategic Response:Brands such as Coco June and Artisana Organics have also heavily invested into e-commerce platforms to ensure that their coconut butter products are easily accessible online. Through social media and targeted digital marketing campaigns, these brands have expanded their reach, particularly into markets where coconut butter has not historically been available.
Nutiva has also expanded its direct-to-consumer model, resulting in home delivery for customers, and also keeping brand loyalty strong. These companies have improved their access to the booming demand of coconut butter through e-commerce channels, especially in areas where demand for coconut butter is still developing.
Sustainable and Ethically Sourced Ingredients
Shift:Known as conscientious consumerism, environmental and ethical considerations are informing consumers about the food wordwide. These considerations extend to coconut butter, as it is yet another product made with the coconut fruit. Brands are now shamed to prove sustainable practices in sourcing, production and packaging. And this emphasis on fair trade, eco-friendly packaging, and responsible farming has shown to be a major brand loyalty driver in the coconut butter category.
Strategic Response: Artisana Organics has been able to position itself as an environmentally-friendly brand by sourcing their coconut butter from fair trade certified farms and packaging it in recyclable packaging. Their commitment to sustainable practices has drawn eco-conscious shoppers.
It has also gotten the word out about its commitment to sustainability through organic farming methods so that its coconuts are free from wheat and gluten, while ensuring the products are delivered in recyclable packaging, while also making compostable packaging available. By utilizing similar practices, each brand has been able to solidify its presence within consideration sets of eco-friendly consumers.
The following table shows the estimated growth rates of the top five territories projected to exhibit high consumption of coconut butter through 2035.
| Country | CAGR, 2025 to 2035 |
|---|---|
| USA | 5.2% |
| India | 6.7% |
| Brazil | 4.5% |
| Australia | 5.8% |
| Germany | 4.1% |
With growing health concerns, consumers are increasingly avoiding animal-based food products and are switching to healthier alternatives such as plant-based products which is driving the growth of the coconut butter market in North America, particularly in United States.
Coconut butter - with its rich flavor and healthy fats - is promoted as a stand-in for butter and other fats in vegan, keto and paleo diets. Fortifying for coconut butter owing to its variety of applications including spreads, smoothies, desserts, and cooking, is another key driver of the coconut butter market with the popularity of plant-based diet being a major driver of this market.
Health-conscious consumers are also attracted to its high MCT (medium-chain triglyceride) content, which is thought to increase energy and help with weight control. Driven by the growing popularity of clean-label products and the demand for natural ingredients, USA manufacturers are now focusing on providing organic and minimally processed coconut butter, a trend which is bolstering the growth of this market. However, with the growing trend of purchasing specialty foods through e-commerce platforms, it has become easier for people to get their hands on coconut butter.
With India being one of the largest producers of coconuts, the region is experiencing robust growth in the coconut butter market. The country’s ancient culinary use of coconut-based products is spreading to new categories, such as coconut butter, propelled by both domestic consumption and export. This is being propelled further by the growing understanding of the health benefits of coconut butter, especially its nutritional composition (healthy fats, antioxidants, vitamins).
Additionally, with the increasing internationalization of Indian food consumption trends, the processed food, snacks and beverages sectors in the country are also witnessing an upsurge in demand for coconut butter. The health & wellness segment is also seeing a significant boost, owing to increasing utilization of coconut butter in Ayurvedic formulations. While Urbanization and disposable income in India are growing giving rise to the premium and organic coconut butter demand and also opening new product offerings.
The demand for natural and organic products is currently driving the growth of coconut butter market in Australia. Australian consumers are becoming more health conscious and moving away from traditional dairy to more plant-based versions. Its rich texture and flavor is gaining popularity in a variety of applications, from spreads to smoothies, to baking.
Coconut butter is considered a viable alternative to many recipes, boosting demand for dairy and gluten-free or vegan products, which continues to flourish. Since Australia loves to consume organic and sustainably sourced products, there is now the option for certified organic coconut butter. Australia’s trend of health and wellness, as well as the growing popularity of veganism and plant-based diets, will likely maintain support for the market’s expansion.
Another nation, Germany which has highly sustainable and health-conscious people is becoming a strong coconut butter market as well. With the rise of demand for plant-based, clean-label and sustainable animal-derived fat alternatives among consumers, coconut butter is one such ingredient gaining momentum in the food industry. Coconut butter’s versatility in attracting vegan and vegetarian cooking in connection with its health benefits goes right alongside German consumers’ preference for healthy, high-quality, minimally processed foods.
The rise for coconut butter in organic food products should also be highlighted, since Germany has a high market for organic food and beverages. Although the growth is conservative than that of emerging economies, the constant demand for coconut butter in health-supportive diets in Germany and also its use in formulations of plant-based products position the country to witness further growth but at a slower rate.
| Segment | Value Share ( 2025 ) |
|---|---|
| Food & Bev erages (By End-use Application) | 63.5% |
The growing functionality of coconut butter as a versatile and healthy ingredient in diverse culinary applications keeps dominating food and beverages segment in the coconut butter market. Coconut butter, with its rich, creamy texture and health benefits, is finding a home in baked goods, smoothies, sauces, salad dressings and even drinks. “If you have a plant-based butter or oil you’re trying to emulate, consumers want something that is less processed, whole.Rich in medium-chain triglycerides (MCTs), coconut butter is thought to help digestion and energy production.
It’s also packed with healthy fats and antioxidants, making it an appealing option to the health-inclined. This is driven by the increased consumption of plant-based & gluten-free alternatives and the growing trend of health & wellness products in North America and Europe. As consumers around the world seek to add more plant-based options to their diets, coconut butter is replacing traditional butters used in cooking as well as baking, further solidifying coconut butter’s dominance in the food & beverages domain.
| Segment | Value Share ( 2025 ) |
|---|---|
| Direct Sales (By Sales Channel) | 52.4% |
Coconut butter market growing through direct sales channel such as online retailers, specialty stores, and supermarkets/hypermarkets. Consumers can access many coconut butter products by utilizing the e-commerce platforms and health food stores segment.
With the continued spread of online shopping and the sustained interest of consumers in health and wellness products, consumers are increasingly turning to retailers who provide an array of organic, non-GMO, and fair-trade certified options when deciding where to purchase coconut butter.
Supermarket or hypermarket also gets a boost in terms of coconut butter sales, particularly in the health food aisles, as more consumers are focusing on natural ingredients when it comes to their food intake. Coconut butter can now be purchased from the comfort of your home (or a few clicks of a button), in many cases for next-day delivery, making it an attractive selling point for busy consumers looking for nutritious, plant base options. Furthermore, due to the emergence of online reviews and customer feedback, this has enhanced consumer confidence and increased a move to these direct sales channels.
Top companies in the global coconut butter market such as Aethon International, The Kerala Store and Wichy Coconut have administered their positions owing to their quality-oriented and organic products which help in gaining a competitive edge amidst the shift towards healthier lifestyles amidst the rising demand for dairy free options.
Ready-to-eat coconut butter products combined with the increasing trend of consumers seeking wholesome and nutritious foods adds to the appeal of these brands that empty becoming the sedentary food of choice to add into an environmentally friendly lifestyle. Their focus on clean labels, authenticity, and the quality of their products has enabled them to gain a competitive edge in both mature and burgeoning markets.
Coconut butter is also a highly competitive space in terms of product innovation and sustainability. As a result, such companies are extending their portfolios by launching new flavour variants, adding functional ingredients, and ensuring eco-friendly manufacturing and packaging. It's also worth noting that as consumers grow ever more health- and eco-conscious, coconut butter brands are using clean sourcing, traceable labeling and certifications to earn consumer trust and loyalty.
Strategic moves, including international expansion, growth in e-commerce, and partnerships with health and wellness influencers, are also enhancing brand awareness and market share. Growing awareness of the health benefits associated with coconut butter such as potential to channelize heart health or rising energy levels is contributing to the growth of the coconut butter market in leading regions like North America and Europe.
For instance:
The Coconut Butter market is expected to reach USD 274.0 million in 2025.
By 2035, the market value is projected to grow to USD 624.7 million.
The market is anticipated to grow at a CAGR of 8.6% from 2025 to 2035.
Key players in the Coconut Butter market include Aethon International, The Kerela Store, Wichy Coconut, Urban Platter, Butters & More, Wildly Organic, Cocofina, Royal Nut Company, Veda Oils, and Earth's Finest.
The growth of the Coconut Butter market is expected to be driven by rising demand for plant-based and natural food products, increasing awareness of the health benefits of coconut-derived ingredients, and the growing trend of clean-label products. Additionally, the expansion of vegan and gluten-free diets is likely to boost demand for coconut butter.
The market is categorized into Food & Beverages (including baked goods, beverages, smoothies, sauces, salad dressing), Personal Care (including skin care, hair care, body care, dental care, feminine care), and Dietary Supplements.
Sales channels are divided into indirect sales, and direct sales, which include online retailers, specialty stores, and supermarkets/hypermarkets.
The industry analysis has been carried out across key regions including North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East and Africa.
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Coconut Butter Market
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