The Middle East coconut products market involves a variety of coconut-based products that are popular in the region including coconut oil, coconut water, coconut milk powder, desiccated coconut, coconut flour, and coconut sugar among others. Coconut is known for its multiple health benefits and is considered a superfood. It is a good source of plant-based saturated fats, fiber, vitamin C, vitamin E, and various minerals. Coconut products are finding wide usage in food & beverages, personal care, and other industries due to their various functional properties. Coconut water offers hydration and is popular as a health drink while coconut oil is used extensively in cosmetics and skin care products due to its nourishing properties.
The Global Middle East Coconut Products Market is estimated to be valued at US$ 1115.91 Bn in 2024 and is expected to exhibit a CAGR of 11.% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Middle East coconut products market are Thai Coconut Public Company Ltd., Vita Coco (All Market Inc.), Coco Veda Natural Products Inc., The Coconut Company Ltd., Merit Food Products Co., Ltd., Thai Agri Foods Public Company Ltd., Linaco, Marico Ltd., Hero Nature Products Pvt Ltd., and Chef’s Choice Foods Manufacturer Co. Ltd.
The growing demand for healthy and natural products in the region is fueling the Middle East Coconut Products Market Demand. Coconut products are considered highly nutritious and are finding increased usage in various food applications as well as personal care due to their nourishing properties.
The market is witnessing high growth owing to increasing global expansion strategies by key players. Major players are focusing on geographical expansion plans and entering into partnerships and distribution agreements with regional players to strengthen their footprint in Middle Eastern countries and cater to the growing demand in the region.
Market Key Trends
One of the key trends in the Middle East coconut products market is the increasing usage of coconut products in the food & beverage industry. Manufacturers are innovating and introducing various coconut-fortified and flavored foods as well as beverages to capitalize on the health benefits of coconut. This is driving the demand for coconut ingredients including coconut water, coconut milk, coconut oil, and coconut sugar in the region’s food industry.
Porter’s Analysis
Threat of new entrants: The Middle East coconut products market has moderate-to-high barriers for new entrants given the high costs needed to build supply chains and brand recognition.
Bargaining power of buyers: Individual buyers have moderate power in this market given the availability of substitutes, while larger buyers may obtain better rates through bulk purchasing.
Bargaining power of suppliers: There are multiple global suppliers of coconuts and coconut ingredients, giving buyers reasonable options and limiting suppliers’ power.
Threat of new substitutes: Potential substitutes like almond, cashew and soy offer some competition, but coconut has wide usage and appeal, restricting the threat from new substitutes.
Competitive rivalry: As the market grows, major brands are facing increasing competition and focusing on new product development, promotion and securing reliable supply chains to maintain an edge.
Geographical Regions
In terms of value, South Asian countries like India, Sri Lanka and Indonesia account for a major share of the Middle East coconut products market, leveraging their strategic locations and advanced coconut processing industries. These countries supply desiccated coconut, coconut oil, coconut water and other products to Middle Eastern markets at competitive rates.
The GCC or Gulf countries region, comprised of Saudi Arabia, UAE, Qatar, Oman, Bahrain and Kuwait, is growing the fastest for Middle East coconut products. Rising health awareness and popularity of Asian cuisines have boosted demand, with coconut water and edible coconut products being particularly popular. Evolving food technology is also aiding new product development tailored for GCC consumer preferences.