Coconuts are a widespread plantation with major producers residing in the Asian region. Coconut oil is an edible oil derived from the meats of mature coconuts. Its high fat content and shelf life of six months makes it preferable by manufacturers. The oil extracted are of two major forms - virgin and refined. Its health and nutritional benefits can expand its scope across various industrial sectors.

The global coconut oil market is estimated to touch a size of USD 8,403.3 million by 2025. It can register 6.37% CAGR from 2018 to 2025 (forecast period). The market is primarily driven by the increasing preference of consumers towards organic products. Preference for healthy cooking oils which can assist in the breakdown of fats in the body and enhance overall wellness levels is likely to spur the demand in the coconut oil market.

The wide ambit of coconut oil in diverse sectors such as pharmaceuticals, biofuels, and cosmetics & personal care is projected to pave open new avenues for the market. The demand in developed countries in North America and Europe is likely to bode well for the market. The use of the product in biofuel can minimize the production of particulates, nitric oxide, and carbon monoxide.

Oil-based cuisines have led to the restriction of coconut oil to Asia Pacific and Africa. But awareness of the oil in Europe and North America can open up opportunities for expansion to coconut oil producers. In addition, a mix of packaging and marketing can lead to its stocking in local hypermarkets and supermarkets which can generate interest among consumers. Untapped areas such as Ghana, Singapore, and South Korea offer lucrative options.

By type, the global coconut oil market is segmented into virgin and refined coconut oil. Virgin oil accounted for a large share and touted to maintain its dominance during the forecast period. This can be credited to the high purity level of the oil after extraction. But it can lose its share in the coconut oil market to its counterpart owing to its high production cost. Refined coconut oil can accrue revenue owing to its application in toiletries, cosmetics, and hair conditioning.

By end-user, the market is segmented into food and industry. The food segment can accumulate significant revenue for the coconut oil market owing to the oil being used for the preparation of various cuisines. The popularity of virgin coconut oil coupled with its benefits over other oils such as soy and corn can drive segment growth. The industry segment can also contribute to the coconut oil market valuation thanks to the utilization of the product in haircare, cosmetics, toiletries, and pharmaceuticals.

Geographic segmentation of the global coconut oil market comprises North America, Central & South America, Europe, Asia Pacific (APAC), and the Middle East & Africa (MEA).

The APAC coconut oil market is projected to grow at a rapid clip owing to investments in virgin oil and plans by producers to increase their production capacities. Further, influx of capital to expedite research and development and widen the scope of coconut oil can drive the market growth.

The North America market is projected to thrive at a modest pace till 2025 owing to high imports of coconut oil and preference of deodorized versions of the product. In addition, awareness of its nutritional benefits can drive the regional market growth. But stringent regulations regarding its usage by federal agencies could pose a challenge.

The Europe region is projected to accrue massive market demand owing to awareness of the lauric acid content in coconut oil. Furthermore, preference for cooking oils and spreads can drive the market growth. In addition, the scope of the product in biofuel and cosmetics can lend an opportunity to the coconut oil market to expand.

Key market players include Tantuco Enterprises Inc. (The Philippines), Greenville Agro Corporation (The Philippines), Samar Coco Products (The Philippines), Coconut Industry Investment Fund Oil Mills Group (The Philippines), Primex Group of Companies (The Philippines), SC Global Coco Products, Inc. (The Philippines), Phidco, Inc. (The Philippines), PT. Golden Oil (Indonesia), PT. Harvard Cocopro (Indonesia), Naturoca (Indonesia), KPK Oils & Proteins India Pvt. Ltd. (India), Prima Industries Limited (India), and KERAFED (India).

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