GLOBAL – Robust demand for plant-based milk is the major factor driving the growth of the global packaged coconut milk market, according to a new report by Technavio.
Coconut Milk is a sweet, milky white liquid made from ground meat from ripe coconut. It is used in more than just beverages, like salad dressings, Asian soups, curries, seasoned rice, pancakes, chocolate products, milkshakes and jams.
In recent years, demand for coconut milk has increased rapidly particularly from plant-based milk processors keen to meet consumer need for alternatives to traditional milk.
Products made from coconut milk are gradually emerging as a wise choice among consumers moving away from dairy products because of their excellent nutritional content and lengthy shelf life.
Products made with coconut milk are frequently linked to a number of health advantages.
It has been suggested that eating them can help prevent coronary artery disease and stroke, decrease blood pressure, enhance renal function, and lower cholesterol.
Further, coconut milk is often low in saturated fat and cholesterol, making it an attractive option for those looking to lower their intake of high-fat-containing animal products.
Due to all such advantages, demand for coconut milk is increasing, which is anticipated to boost the growth of the packaged coconut milk market between now and 2027.
Technavio projects that global coconut milk market will grow at a CAGR of more than 12% between 2022-2027, increasing revenue attributable to the market by US$942.7 million.
The demand for coconut milk is growing in developed countries such as the U.S., Germany, the UK, and France, where consumer awareness about health benefits of the product are high.
Even in developing countries, the trend is starting to pick up with some dairy processors such as Bio Food Products from Kenya launching coconut milk to meet demands of a niche but growing market.
It’s however important to note that coconut milk exists in a highly competitive alternative dairy market which includes established products such as almond, soy and oats.
Technavio advises manufacturers to focus on key innovations that cater to the requirements of a large consumer base.
A positive trend is that coconut milk is now being considered as a healthy replacement for carbonated drinks, which is a positive product differentiation strategy that can relieve it from the intense competition in the alternative dairy space.
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