Coconut Milk Market Size, Share, Growth, and Industry Analysis, By Type (Regular Coconut Milk and Organic Coconut Milk), By Application (Direct Drink, Dairy & Dessert, Baked Products and Others), and Regional Forecast to 2033

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COCONUT MILK MARKET OVERVIEW

The global Coconut Milk Market size was valued at USD 0.22 billion in 2024 and is expected to reach USD 0.79 billion by 2033, growing at a CAGR of about 17% during the forecast period.

Coconut milk is a highly creamy liquid prepared using grated meat from brown matured coconuts. Unlike coconut water, a clear liquid enclosed in green coconuts, coconut milk results from grating coconut flesh, mixing the latter with water, and straining the liquid. The difference lies in the proportions, where thick coconut cream has little water while coconut milk adds more water. ‘Hua gati’ is the first press which is slightly more forceful than ‘Haang gati’, the second press. Coconut milk originated from the tropical countries of Southeast Asia and it has been adopted in many Asian, Indian, Caribbean, Hawaiian and South American cuisines, it is rich and creamy in texture with a slightly sweet taste that is suitable in curries, soups, sweets and other beverages.

Coconut milk has high calories, with 93% of its calories being in fats and medium-chain triglycerides (MCTs), which are recognized to support metabolism and provide immediate energy boosts. It also contains important nutritional values such as vitamin C, iron, magnesium and potassium which are off to the body. Also on the ingredients list, they provide antioxidants that help to reduce oxidative stress on the cells promoting the health of body cells. They are also used in making food such as curries and desserts to replace dairy products because of lactose intolerance or being vegans. Due to its paste-type consistency and mildly sweet taste, it is versatile as it acts as an agent for thickness and flavouring in curries, soups, beverages and desserts worldwide.

COVID-19 IMPACT

"Pandemic disruptions caused supply shortages and financial instability which negatively affected the market"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The first wave of the COVID-19 pandemic affected the coconut milk market by significantly disrupting supply and distribution chains. There were also supply chain issues with systems and structure problems that limited deliveries and transportation causing major problems with stock availability. Labour shortages worsened this situation as the processing facilities functioned with limited human resource capacity, thus constraining production. Furthermore, this contributed to instability with prices of goods and services therefore there was increased volatility which affected the cost and returns on investments by organisations. These issues equally impacted manufacturers while creating supply deficiency issues in the retail markets, extending its toll on consumption and hampering the industry when it needed rapid growth.

LATEST TREND

"Rise of vegan and plant-based diets to drive the market"

The rise in the vegan, plant-based diets, has also influenced the coconut milk market, especially taking it as a dairy product. Due to increased awareness of people’s health, lactose intolerance and ethical issues that make them avoid animal products, coconut milk has been beneficial since it is a plant-based product rich in nutrients. Coconut milk is widely used in meals, beverages and desserts as it contains a high fat content which can be used to imitate dairy products. Moreover, the formulation of new products such as unsweetened, fortified and flavoured coconut milk has contributed greatly in the development of this market. This factor has resulted in increased production, new product innovation and competition among the manufacturing companies.

COCONUT MILK MARKET SEGMENTATION

By Type

Based on type, the global market can be categorized into Regular Coconut Milk and Organic Coconut Milk

• Regular Coconut Milk: Regular coconut milk is prepared through the soggy meat from the mature coconuts and then squeezing it. The colour is opaque, white and creamy and that distinctive buttery taste is attributed to excessive oil content material. The manufacturing process involves multiple pressings with water to obtain consistency. It is available in complete fats, low fats and coconut cream to meet different cooking needs. So coconut milk can be added to sweets or other dishes with more creaminess and a unique taste of coconut.
• Organic Coconut Milk: The organic coconut milk was prepared from fresh coconuts sourced from farms that do not use any inorganic fertilizers or pesticides. It meets the call for easy-label, organic and sustainable meal options. Organic versions have guaranteed approval from the farming industries, giving consumers faith in farming. It is similar to normal coconut milk and enjoys the same benefits as the latter, making it suitable for health-conscious customers. This is due to the increasing health consciousness among the people especially regarding their nutritional intake for stronger immunity.

By Application

Based on application, the global market can be categorized into Direct Drink, Dairy & Dessert, Baked Products and Others

• Direct Drink: Coconut milk is a nutritious, refreshing dairy alternative for direct drink beverages. It adds to smoothies and tropical drinks with its rich texture and hydrating qualities. The preparation process ensures optimal viscosity and sensory appeal. Some coconut milk drinks include added sugar for better taste. Coconut milk was also prepared from fresh coconut by grating it, soaking it in warm water, and filtering it.
• Dairy & Dessert: Coconut milk is an excellent substitute in most dairy milk products for desserts and other dairy products because it provides a better texture and taste. It is mostly employed in preparing puddings, ice cream, flan and dessert soups with thickness and creaminess characteristics. This product including coconut milk is often used by lactose-intolerant individuals when taking shakes and smoothies. Moreover, it is perfect for coffee, enhancing the flavour,and being smooth and sweet but containing no sign of dairy.
• Baked Products: Flavour enhancers are substances added to baked products to increase the taste flavour and texture of baked products. It offers coconut flavour as another option for those sensitive to dairy products. Coconut milk can blend in with other spices as it meets the needs of baking recipes. It is common for some people to employ coconut milk for baking in place of dairy products. Coconut milk also contributes to and improves the texture and taste of other baked commodities for instance cakes, muffins, biscuits and other delicacies.
• Others: Coconut milk is applicable in Thai cuisine since it is used in making curries, sauces and soups. It is also used to make coffee and tea particularly when creaminess is needed. In stir-fries, it adds rich flavour and creamy velvety texture. Coconut milk can also be used to make oatmeal. Because of its applicability in improving any cooking method, it is perfect for creating many recipes.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factor

"Health-conscious trends to boost the market "

The health-conscious consumer trends have been rapidly growing globally, with consumers choosing healthier food and beverages. Coconut milk has become more popular than other products since most people have developed dairy-free alternatives, including proteins that naturally exist within it. Coconut milk contains essential nutrients such as fats, vitamins and minerals making the product suitable for use in place of a dairy product. In addition, it can be employed in many foods and beverages and can be considered a normal component of vegan diets since it is animal-derived. People are prioritising health consciousness which boosts the coconut milk market growth due to its high quality, organic, natural and sustainable products.

"Rising disposable income has fueled the demand in the market"

Rising disposable income is a major factor that lets consumers choose the food and beverage as they are willing to spend more money on better and unique products such as organic and quality coconut milk. This change has affected the coconut milk market since people are more concerned with consuming healthy products in the long run. Organic coconut milk without pesticides and additives has also benefited from a growing trend of consumers, especially those who are conscious of their health and willing to pay for premium and niche products. With an increasing income, purchasing premium coconut milk will also grow for more health-conscious and quality-oriented customers.

Restraining Factor

"Price fluctuations of raw coconuts and other production-related inputs hinder the market"

The factors that influence the price fluctuations in the coconut milk market include changes in weather patterns, increases in the price of labour and changes in transportation costs. These in turn have direct effects on the cost of raw coconuts which are a major ingredient in the preparation of coconut milk. Climate change or seasonal fluctuations might influence the production of coconuts, leading to unpredictability in raw coconuts supply and therefore varying prices. Additionally, producers are hit by escalating costs such as labour and transportation to manage competition, leading to fluctuating production costs. Such price fluctuations make it hard to sustain predictable prices, making the profits unpredictable for manufacturers and consumers thus making the market unstable.

Opportunity

"Growing demand for premium and organic products to create market opportunity"

The demand for high-quality and organic coconut milk products has increased in the market since consumers are concerned about the quality of their products. Consumers are aware of good food habits and would prefer to pay a venture to obtain organic coconuts, free from pesticides and unfortunately sources coconuts and other coconut products. This inclination in consumers’ diets relates to the change in preference for clean-label products and plant-based diets. Therefore, the market offers manufacturers a niche and potentially very lucrative market in organic coconut milk products. The global market for premium coconut milk is poised for growth as consumers globally become healthier and more conscious of the environment.

Challenge

"Competition from non-dairy alternatives to challenge the market "

Coconut milk faces significant competition from other dairy alternatives such as almond, soy and oat milk. These alternatives have found their speciality, such as nutritional value which include low-calorie content (almond milk), high protein (soy milk) and creamy texture (oat milk). Coconut milk’s competitors are plant-based alternatives, with good market brand familiarity and consumer preference. These options are more accessible and advertised, thus making competition stiffer and forcing coconut milk stakeholders to focus on quality, flavour and strategy for sustainability in the market.

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COCONUT MILK MARKET REGIONAL INSIGHTS

• North America

The North American market for coconut milk is growing steadily due to increased customer preferences for more options from plant sources and health advancement. The United States leads in the region followed by Canada and Mexico respectively. These are some of the reasons that have contributed to the high prevalence of obesity and lactose intolerance, thereby boosting the market for plant-based products such as intended beverages and desserts with coconut milk being a highly prospective market.

• Europe

Europe is the second largest consumer of coconut milk whereby the U.K. leads the market followed by France, Germany, Italy and Russia. The food and beverage industry of the European region in particular is experiencing a hugely rational and encouraging growth for the market of coconut milk. A higher population, increased awareness of the advantages of coconut milk, and changing customer preferences towards products derived from natural products are the key drivers in the region. Germany owns the largest market while the market that is growing at the fastest rate is the U.K.

• Asia

The Asia Pacific region dominates the global coconut milk market share due to the incorporation of coconut milk in regional dishes and the region being the biggest producer of coconuts. In global coconut production, Indonesia is among the leading countries with more than one million metric tons and India, China and Japan play a significant role. India drives the demand for plant-based alternatives and growing awareness in health aspects. The Asia Pacific region remains the fastest-growing market owing to technological developments and the popularity of plant milk products.

KEY INDUSTRY PLAYERS

"Key industry players form partnerships with retailers and food service providers for market expansion"

Key industry players in the coconut milk market have formalized collaborations with food service, retail, and related players. These alliances help the players to increase market coverage, advertise their brands and products, and access new target markets. Coconut milk brands need strategic partnerships with retail outlets and proper eateries to enhance the product's availability and reach more consumers. These help industry players expand product availability, promote brands and products, and access new market opportunities. Additionally, strategic partnerships enable companies to address consumer demand for plant-based products further driving the market.

List of Top Coconut Milk Companies

• Theppadungporn Coconut (Thailand)
• ThaiCoconut (Thailand)
• Asiatic Agro Industry (Thailand)
• PT. Sari Segar Husada (Indonesia)
• SOCOCO (Brazil)
• Ahya Coco Organic Food Manufacturing (Indonesia)
• Heng Guan Food Industrial (Singapore)
• WhiteWave Foods (U.S.)
• Coconut Palm Group (China)
• Betrimex (Vietnam)
• Goya Foods (U.S.)
• Renuka Holdings (Sri Lanka)
• HolistaTranzworld (India)
• UNICOCONUT (Indonesia)

KEY INDUSTRY DEVELOPMENT

February 2025: Thai Coconut Public Company Limited has signed an MOU with Anflo Industrial Estate in the Philippines to establish a coconut milk production plant. This expansion will support the further development of markets in the U.S. and Europe, starting with the production of canned coconut milk. In global terms, this venture translates into lower raw material costs, better and more efficient transporting facilities and access to high-quality coconuts.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The global coconut milk market is experiencing significant growth, driven by rising consumer awareness of plant-based diets, health benefits, and lactose intolerance. The increasing demand for dairy alternatives, especially in North America and Europe, has contributed to market expansion. Asia-Pacific remains the dominant producer and consumer due to its deep-rooted culinary traditions and abundant coconut production. Despite challenges such as price fluctuations and competition from other non-dairy alternatives, the market continues to thrive with innovations such as organic and fortified coconut milk. Strategic partnerships with food service providers and retailers further enhance market reach, ensuring sustained growth and profitability.