It is poised to grow at a CAGR of 6.1% over the forecast period of 2022-2027. Coconut oil is derived from the kernel of matured coconuts made from the coconut palm and contains 80-90% of saturated fat but the less amount of unsaturated fat needs hydrogenation. Coconut oil is used as an edible oil in many countries as it contains lauric acid and recently the popularity of coconut oil is raised owing to its various health benefits.
Coconut oil is the most common food oil used as a dietary fat source. It’s commonly used as a cooking oil and in the culinary industry, including baking and confectionery. Virgin coconut oil (VCO) and refined, bleached, As well as deodorized coconut oil, are two forms of coconut oil that are separated by how they are extracted from the coconut meat (RBD). Coconut oil is a product made from the flesh of the fresh coconut. The processing of coconut oil (VCO) differs from that of RBD. The latter is made from dried beef or copra and through a refining procedure before becoming edible. As the trend of coconut oil increases, people claim that it can help burn belly fat, suppress appetite, enhance the immune system, prevent heart disease, and prevent dementia and Alzheimer’s disease. Coconut production is projected to be over 55 million tons per year around the world. The three largest coconut producers in the world are Indonesia, the Philippines, and India.
The robust growth in the end-use industries such as food, cosmetics, and even pharmaceutical are some of the factors driving the global natural coconut oil Industry forward in the projected period of 2022-2027.
Growing demand for natural cosmetic products inclusive of natural coconut oil has readily aided the market growth
People nowadays are primarily concerned with taking the best possible care of their hair and skin. Women are the primary purchasers of beauty and personal care items all around the world. Customers’ preferences have shifted away from artificial chemical products and toward natural ones in recent years. During the forecast period, the coconut oil market is expected to develop due to an increase in the use of organic and natural goods. The adoption of organic products is heavily influenced by social media platforms. Manufacturers are focusing on color cosmetics and scents, while natural cosmetics for hair and skincare continue to impact growth plans. The growing popularity of natural cosmetic colors created from pigments found in fruits and vegetables is also benefiting market participants. According to premium beauty news, Natural and organic cosmetics sales have increased at an annual rate of +7% over the last five years and are predicted to reach 5 billion euros by 2023.
The demand for natural coconut oil is increasing in the food and beverage industry which is set to drive market growth
Owing to the numerous health benefits of coconut oil, it is widely employed in a variety of ready-to-eat snacks, which will drive demand and growth in the coconut oil market in the future years. Furthermore, coconut oil is a preferable option for baking butter or oil because it is less expensive and helps the baked product taste lighter. Furthermore, the use of coconut oil in food goods is highly beneficial in obtaining quick energy, which is driving up demand for coconut oil among food makers. Coconut oil has gained importance as a dietary fat owing to its high content of lauric acid. It can be used for producing margarine and shortenings. Coconut oil is preferred as fat in the preparation of filled milk, infant milk powder, confectionery, and bakery products. Owing to its stable character, coconut oil is the preferred fat for deep frying.