Rapid urbanization across the Middle East coupled with changing lifestyles and dietary patterns has augmented the demand for coconut products in the region. Coconut products such as coconut oil, coconut milk, and coconut water are gaining wider acceptance owing to their nutritional properties and increasing product innovations.
The 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.
Coconut products are derived from the coconut palm, which grows abundantly across tropical regions of the Middle East. Prominent coconut products include coconut oil, which finds widespread usage in food, cosmetic, and industrial applications due to the presence of beneficial fatty acids such as lauric acid and antimicrobial properties. Coconut milk has gained popularity as a plant-based dairy alternative, while coconut water remains a popular refreshment drink in the region owing to its high nutritional value. Rapid urbanization across Middle Eastern countries has prompted consumers to shift from their traditional diets towards processed and convenient coconut products. Strong economic growth in the region coupled with rising living standards has augmented the demand for premium coconut products.
Key Takeaways
Key players operating in the Middle East Coconut Products Market Demand 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€TMs Choice Foods Manufacturer Co. Ltd. Growing demand for plant-based dairy alternatives such as coconut milk from health-conscious consumers is driving market revenue. Technological advancements such as development of virgin coconut oil extraction methods without the use of harsh chemicals are further supporting the market growth.
Market Trends
The expansion of organized retail sector across Middle Eastern countries is providing major boost to packaged coconut products sales. E-commerce platforms are also facilitating the sales of premium coconut products to consumers across remote locations. Innovation in product offerings through addition of various flavors and blend of coconut products with other fruits/herbs is a key trend shaping consumer demand.
Market Opportunities
Growing health awareness among Middle Eastern consumers regarding the medicinal properties of coconut products creates opportunities for nutritional/functional coconut product launches. Significant scope remains for export expansion of Middle Eastern coconut products to European and American markets with changing trade policies and agreements.
Impact of COVID-19 on Middle East Coconut Products Market
The COVID-19 pandemic presented significant challenges to the Middle East coconut products market in terms of supply chain disruptions and decline in demand from the hospitality sector. Lockdowns imposed by various Middle Eastern governments led to closure of manufacturing facilities and movement restrictions that affected the transportation of raw materials as well as finished goods. The hotel, restaurant and cafeteria sector faced closures during the peak of the pandemic which severely dented the demand for products like coconut water, coconut oil and other bakery ingredients used in these segments.
However, as lockdowns eased and vaccination drives progressed, the market witnessed recovery in demand driven by increased home consumption. Families started preparing more food at home leading to a rise in demand for edible coconut products that found applications in cooking and baking. Coconut water emerged as a preferred beverage for health conscious consumers looking to boost their immunity. Manufacturers responded with innovations in packaging and product offerings to cater to evolving preferences of consumers. The growing focus on health and wellness is expected to present growth opportunities for value-added coconut products going forward.
Geographical regions concentration in Middle East coconut products market
In terms of value, the Middle East coconut products market is concentrated highly in Gulf Cooperation Council (GCC) countries such as United Arab Emirates, Saudi Arabia and Qatar owing to their high per capita incomes and spending power. These nations import significant quantities of coconuts, coconut oil and other products to meet the demand of their growing populations and vibrant food manufacturing and food service industries. According to industry estimates, GCC accounted for over 65% of the total Middle East coconut products market value in 2024 driven by demand centers in UAE, KSA and Qatar.
Fastest growing region in Middle East coconut products market
Turkey represents the fastest growing regional market for coconut products in the Middle East. Propelled by a young population, rising health awareness and increasing western influence on diets, the consumption of coconut water, coconut oil and coconut flour is surging rapidly among Turkish consumers. Domestic production is also increasing to support local demand and substitute imports. Expanding modern retail infrastructure, growing organized food industry and robust economic growth are some factors fueling the gains for coconut products market in Turkey. The country is expected to witness a CAGR of over 15% during the forecast period of 2024 to 2030.
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