The global coconut milk market is set to experience consistent expansion from USD 1.3 billion in 2025 to USD 2.4 billion by 2035, reflecting a CAGR of 8.5% during the forecast period.
Demand for coconut milk has risen significantly owing to the worldwide shift towards plant-based, dairy-free diets, encouraged by increasing lactose intolerance cases and a growing vegan population, especially in the United States, Germany, the United Kingdom, and parts of Southeast Asia. The product’s versatility in various applications, including beverages, desserts, and ready-to-eat meals, has contributed to its robust uptake across multiple industries.
By form, liquid coconut milk is projected to dominate the market with an expected 74% market share in 2025. The preference for liquid coconut milk is driven by its ease of use, superior taste, and suitability for direct consumption and cooking purposes. Major market players such as Vita Coco, Thai Kitchen, and Kara have expanded their liquid coconut milk offerings to cater to this growing demand in household and commercial kitchens.
By nature, conventional coconut milk is likely to capture approximately 82% of the market share in 2025. This is primarily attributed to its affordability and easy availability in both developing and developed countries. Despite the growing awareness around organic food products, conventional variants remain the popular choice among price-sensitive consumers in Asia Pacific and Latin America, where coconut milk forms an integral part of daily cuisine.
In a February 2025 article by Food Engineering (and similarly reported by PR Newswire, Dairy Foods Magazine, FoodBev, Beverage Industry, and Green Queen), Susan Knight, President of Whole Moon (a subsidiary of WhiteMug), stated:
“We’re thrilled to offer consumers the first coconut milk made from whole coconut meat - no creams, no oils; just pure, whole ingredients.” This statement underscores the industry’s trend towards clean-label, minimally processed coconut milk offerings, reflecting a significant shift in consumer preference for authenticity and purity in plant-based dairy alternatives.
Prominent players like Danone S.A., Nestlé S.A., GraceKennedy Limited, and Vita Coco Company are focusing on expanding their product portfolios to include premium and innovative coconut milk variants to capture evolving consumer demand worldwide.
| Attribute | Details |
|---|---|
| Market Size (2025E) | USD 1.3 billion |
| Market Size (2035F) | USD 2.4 billion |
| CAGR (2025 to 2035) | 8.5% |
The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2024) and the current year (2025) for the global industry. This analysis reveals crucial shifts in performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
| Particular | H1 |
|---|---|
| Year | 2024 to 2034 |
| CAGR | 6.0% |
| Particular | H2 |
|---|---|
| Year | 2024 to 2034 |
| CAGR | 6.4% |
| Particular | H1 |
|---|---|
| Year | 2025 to 2035 |
| CAGR | 6.1% |
| Particular | H2 |
|---|---|
| Year | 2025 to 2035 |
| CAGR | 6.5% |
In the first half (H1) of the decade from 2025 to 2035, the business is predicted to surge at a CAGR of 6.0%, followed by a slightly higher growth rate of 6.4% in the second half (H2) of the same decade. Moving into the subsequent period, from H1 2025 to H2 2035, the CAGR is projected to increase to 6.1% in the first half and remain stable at 6.5% in the second half. In the first half (H1), the sector witnessed an increase of 10 BPS, while in the second half (H2), the business experienced growth of 10 BPS.
Liquid coconut milk dominates the global market with a 74% value share in 2025, driven by its widespread use in cooking, beverages, and desserts. Conventional coconut milk leads by nature, capturing an 82% share, owing to its affordability and extensive availability across diverse regions, while organic variants remain niche due to premium pricing.
Liquid coconut milk holds the highest value share in the global coconut milk market, accounting for approximately 74% in 2025. Its widespread use in food and beverage applications, particularly in cooking, beverages, desserts, and curries, makes it the most preferred form among consumers and foodservice operators.
Liquid coconut milk offers superior convenience, ease of use, and rich creamy texture that enhances the sensory appeal of dishes, making it an essential kitchen ingredient in both household and commercial kitchens. Its versatility in recipes such as smoothies, dairy-free lattes, ice creams, sauces, and Asian delicacies like Thai and Indian curries drives its dominant presence in the market.
Additionally, the growth of vegan and lactose-intolerant consumer bases fuels demand for liquid coconut milk as a suitable alternative to dairy milk. In contrast, powdered coconut milk holds a niche position with applications limited to processed foods, dry mixes, and travel-friendly formulations. Despite its long shelf life and convenience for storage and transport, powdered coconut milk cannot match the fresh taste and texture appeal of liquid coconut milk, thus limiting its market penetration.
Conventional coconut milk dominates the market with an estimated value share of nearly 82% in 2025, primarily driven by its affordability and extensive availability across both emerging and developed economies.
Conventional coconut milk caters to the mass market segment, including households, foodservice, and industrial food processors, who prefer cost-effective and easily accessible options for everyday use. It is widely used in preparing culinary dishes, processed foods, bakery products, and beverage formulations due to its compatibility with diverse recipes and its ability to enhance flavor and richness without adding dairy-based ingredients.
On the other hand, organic coconut milk remains a premium product, occupying an estimated 18% share of the market, and is mostly favored by health-conscious consumers in North America, Europe, and select parts of Asia-Pacific. While organic variants are marketed for their pesticide-free and environmentally sustainable attributes, their higher price point restricts their adoption in price-sensitive regions. As a result, conventional coconut milk continues to maintain a stronger foothold in retail and foodservice channels globally, sustaining its leadership position in the market.
Growing Demand for Fortified and High-Protein Products
Consumers are increasingly seeking nutrient-dense dairy alternatives, leading to a surge in demand for fortified and high-protein milk. With a rising focus on functional nutrition, manufacturers are introducing the product enriched with added vitamins, minerals, and plant-based proteins to enhance its health benefits. The demand for fortified milk with calcium, vitamin D, and omega-3 fatty acids is particularly high among consumers transitioning from dairy to plant-based alternatives. Manufacturers are investing in advanced processing techniques to improve the texture and protein content of the product, making it a viable alternative to cow’s milk for protein-conscious consumers. Additionally, brands are launching sports nutrition-focused coconut milk beverages to cater to the fitness segment. This trend is reshaping product innovation, ensuring higher nutritional value while maintaining the clean-label and natural appeal that consumers prefer.
Rising Popularity of The product in Premium Culinary Applications
The product is no longer limited to traditional Southeast Asian cuisine-it is now widely embraced in global gourmet and premium culinary segments. With the rise of fusion cuisine and high-end plant-based dining, the product is becoming a key ingredient in luxury desserts, dairy-free sauces, and barista-style beverages. Leading food manufacturers and chefs are experimenting with coconut milk-infused gourmet ice creams, artisanal cheeses, and specialty baked goods, elevating its presence in the premium food category. The expansion of the product in fine dining, specialty coffee, and high-end bakery products has prompted manufacturers to focus on premium extraction techniques that enhance creaminess and flavor depth. Additionally, food service providers are increasingly incorporating organic, cold-pressed, and aged product variations to cater to a growing base of discerning consumers seeking sophisticated plant-based alternatives.
Increased Application of The product in Functional and Fermented Products
The rising consumer preference for gut health and probiotic-rich foods is fueling the demand for fermented products. The market is witnessing a surge in coconut milk-based yogurts, kefir, and probiotic beverages, as consumers become more aware of the benefits of fermented plant-based foods. Companies are developing naturally fermented products using live bacterial cultures to enhance digestive health. This trend is particularly strong in North America and Europe, where functional food categories are expanding rapidly. Additionally, the product is being integrated into fermented nut-based cheeses and cultured dairy alternatives, creating new growth opportunities. Manufacturers are focusing on extending shelf life, enhancing probiotic potency, and optimizing texture in these products, ensuring that the product remains a key ingredient in the evolving functional food and beverage market.
Expansion of Shelf-Stable and Ready-to-Drink Coconut Milk Beverages
The growing demand for convenience and portability is driving the expansion of shelf-stable and ready-to-drink (RTD) beverages. As on-the-go consumption trends increase, manufacturers are investing in longer shelf-life processing technologies such as UHT (ultra-high temperature) treatment and aseptic packaging.
These advancements have led to the rise of coconut milk-based coffee drinks, smoothies, and energy-boosting formulations, catering to busy consumers looking for healthy, dairy-free beverage options. Leading brands are also experimenting with flavored and functional drinks, incorporating ingredients like turmeric, matcha, and adaptogenic herbs to enhance their appeal. The growth of digital grocery platforms and e-commerce has further fueled the accessibility of shelf-stable products, making it easier for consumers to stock up on convenient, nutrient-rich beverages that fit into their fast-paced lifestyles.
| Country | CAGR (2025 to 2035) |
|---|---|
| USA | 6.3% |
| UK | 5.1% |
| China | 7.6% |
| Germany | 2.7% |
| Japan | 5.3% |
As per FMI, the USA industry is anticipated to grow at 6.3% CAGR during 2025 to 2035. The reason is primarily due to the increasing consumer demand for plant-based diets and lactose intolerance. The product is a favorite dairy alternative for smoothies, coffee, and baking. Businesses are responding to demand by expanding product lines, including organic and fortified varieties, targeting health-conscious and vegan-friendly consumers.
Growth Drivers in the USA
| Key Drivers | Description |
|---|---|
| Growing Demand for Plant-Based Alternatives | Some customers are going for dairy-free products due to health concerns. |
| Widespread Use in Food & Beverage | The product is applied extensively in recipes, smoothies, and coffee. |
| Organic & Fortified Products Availability | Healthier product offerings increasingly incorporate Organic and fortified products into the brand portfolio. |
The UK industry will register a growth rate of 5.1% CAGR from 2025 to 2035, as per FMI, due to increasing demand for free-from foods and the plant-based eating trend. The product is now omnipresent in British kitchens, for conventional cooking, and as a dairy substitute in beverages and baked items. Supermarkets and health food stores are also adding lines of the product with fortifications and added flavors to their offerings. Besides this, growing consumer awareness about the nutritional benefits of the product, which is lactose-free and rich in nutrients, is fueling consumer demand for its use.
Growth Drivers in the UK
| Key Drivers | Description |
|---|---|
| Growing Trend towards Dairy-Free Diet | Consumer demand is fueled by consumers actively seeking alternatives to traditional dairy milk. |
| Growth of Vegan & Health-Focused Consumers | Green vegetable diets are driving the product demand. |
| Retail Availability Growth | Increasing numbers of coconut milk products are on supermarket shelves. |
As per FMI, China's industry will record a healthy CAGR of 7.6% from 2025 to 2035 and is among the world's fastest-growing markets. The impetus to growth is increased by health consciousness, food diversification, and demand for functional drinks. The product is increasingly becoming popular in Chinese traditional confectionaries and modern usage. In addition, lactose intolerance has long been common in the Chinese industry, and plant-based alternatives such as the product are a relief. Governments are introducing RTD beverages primarily for urban residential consumers who need convenience and healthy lifestyles.
Growth Drivers in China
| Key Drivers | Description |
|---|---|
| Health Consciousness On The Rise | Consumers are shifting towards vegetative and functional drinks. |
| Prevalence of Lactose Intolerance | More than half of the population favors dairy substitutes. |
| Growth of Ready-to-Drink Milk Products | Urban consumers are drawn to convenient packaging and varied flavors. |
As per FMI, Germany's industry is expected to grow at a CAGR of 2.7% during 2025 to 2035, driven by the demand for sustainably produced and organic plant-based food items in Germany. Germans are extremely food-conscious and sensitive to sustainability; hence, they prefer clean-label milk. The presence of an organic food industry and regulation of the ingredients in the foods also promoted the use of the product. Germany's dairy substitute and beverage industry is consistently growing, and currently, the product is found among plant-based dairy foods such as yogurts and candies.
Growth Drivers in Germany
| Key Drivers | Description |
|---|---|
| Intense Demand for Organic & Eco-Friendly Products | Consumers prefer to drink milk if it comes from an ethical source. |
| Growth in Plant-Based Dairy Substitutes | The product is utilized increasingly in yogurts and desserts. |
| Well-Ruled Food Industry | High-quality food regulations drive clean labeling. |
As per FMI, Japan's industry is anticipated to grow at 5.3% CAGR from 2025 to 2035 as consumers develop a greater interest in healthy and functional foods. The product is used extensively in Japan, particularly for curries and desserts. Japanese consumers especially desire high-quality and less processed items, leading to rising demand for premium and organic milk offerings. The global food trend drivers, such as lactose-free and vegan diets, are further boosting industry growth. Key food and beverage players in Japan are constantly developing new coconut milk-based offerings that appeal to traditional and new consumer tastes.
Growth Drivers in Japan
| Key Drivers | Description |
|---|---|
| Increasing Adoption in Traditional Cuisine | The product is becoming increasingly visible in traditional Japanese curries and desserts. |
| Preference for Premium & High-Quality Products | Consumers are inclined towards organic and minimally processed milk. |
| Growing Demand for Vegan & Lactose-Free Diet | Soaring demand for plant-based foods is driving marketplace demand. |
The Vita Coco Company (12-16%)
A market leader in plant-based coconut beverages, leveraging sustainable sourcing and premium branding.
McCormick & Company, Inc. (10-14%)
Expand its portfolio with organic and culinary products for global consumers.
Goya Foods, Inc. (8-12%)
Maintains strong brand recognition in Latin American markets, focusing on traditional product offerings.
Celebes Coconut Corporation (7-11%)
Specializes in bulk supply and private-label production, catering to food manufacturers and retailers.
Thai Coconut Public Co. Ltd. (6-10%)
A major exporter of coconut milk products with a diverse portfolio catering to food service and retail sectors.
Other Key Players (35-45% Combined)
The global industry is slated to reach USD 1.3 billion in 2025.
The industry is predicted to reach a size of USD 2.4 billion by the end of 2035.
Leading players include The Vita Coco Company, McCormick & Company, Inc., Goya Foods, Inc., Celebes Coconut Corporation, Thai Coconut Public Company Ltd., Danone S.A., Nestlé S.A., Edward & Sons Trading Co., Ducoco Alimentos S.A., and Pure Harvest Smart Farms.
China is slated to observe the fastest growth with CAGR of 7.6% during the study period.
Coconut milk powder is being widely used.
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Coconut Milk Market
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