The global virgin coconut oil (VCO) market was valued at USD 2.54 billion in 2023 and is projected to grow from USD 2.72 billion in 2024 to USD 5.17 billion by 2032, registering a CAGR of 8.33% during the forecast period. In 2023, Asia Pacific held the largest market share at 39.37%. In addition, the U.S. market is expected to witness notable growth, with the market size anticipated to reach approximately USD 792.29 million by 2032. This growth is fueled by increasing imports driven by favorable trade policies and rising demand for coconut-based products.
During the COVID-19 pandemic, major exporting nations experienced reduced coconut and derivative production, causing a price surge of around 39% for coconut oil and VCO in 2020. However, with easing trade restrictions and resumption of production activities, the market is on a recovery path and is expected to grow significantly in the coming years.
What is Virgin Coconut Oil?
Virgin coconut oil is derived from fresh coconut meat or its byproducts through natural processes, without the use of chemicals or additives. It retains its purity, rich in natural vitamin E, and is less prone to hydrolytic or oxidative degradation due to its low free fatty acid and peroxide content.
Information Source: https://www.fortunebusinessinsights.com/virgin-coconut-oil-market-106554
Market Segmentation
The market is segmented by type into organic and conventional. By end-user, it includes food & beverages, pharmaceuticals, and cosmetics & personal care. Regionally, the market is analyzed across North America, Europe, Asia Pacific, and the Rest of the World.
Report Highlights
The report provides both qualitative and quantitative insights, offering a detailed assessment of market segments, trends, and growth drivers. It also evaluates M&A activity, regulatory frameworks, and the market impact of COVID-19. A comprehensive research methodology supports these findings, helping stakeholders make informed strategic decisions.
Market Drivers and Challenges
Growing Demand for Functional Foods and Health Awareness to Fuel Market Expansion
Consumer awareness of the health benefits associated with virgin coconut oil, including its nutritional content—such as healthy fats, antioxidants, and essential vitamins—is expected to drive market growth. Rising use of VCO in functional foods and its popularity among followers of diets like keto and paleo further boost demand. Additionally, the pharmaceutical sector, particularly among diabetic patients, is adopting VCO for its health benefits, adding momentum to its market expansion.
However, the presence of several alternative oils such as virgin olive oil, almond oil, sunflower oil, and canola oil—many of which offer similar nutritional benefits and have higher smoke points—may pose a challenge to market growth in the coming years.
Regional Insights
Asia Pacific to Maintain Market Leadership Due to Widespread Adoption and Production
Asia Pacific is expected to retain its dominant position, supported by growing acceptance of VCO and a strong base of coconut cultivation in countries like India and the Philippines. Government initiatives that promote the health benefits of coconut products are also contributing to the region's leadership.
Europe is projected to hold a substantial share of the market as well, driven by increasing consumer awareness and product availability across health-focused retail channels and supermarkets. Demand from industries such as cosmetics, pharmaceuticals, and food & beverages is also accelerating market growth in the region.
Competitive Landscape
Leading Companies Focus on Innovation and Product Expansion to Sustain Market Position
Key players are focusing on product innovation to meet evolving consumer needs. The market is fragmented, with frequent launches of new products and strategic collaborations. Companies are pursuing mergers, acquisitions, and joint ventures to strengthen their global presence.
For instance, in February 2020, QNET launched Nutriplus Virgin Coconut Oil, known for its antioxidant properties and high concentration of medium-chain fatty acids, lauric acid, and capric acid.
Key Players in the Virgin Coconut Oil Market
- Edward & Sons Trading Co. (California, U.S.)
- Greenville Agro Corporation (Cebu City, Philippines)
- The Coconut Company (UK) Ltd. (London, U.K.)
- Healthy Traditions, Inc. (Texas, U.S.)
- Nutiva Inc. (California, U.S.)
- The Hain Celestial Group (New York, U.S.)
- MaxCare VCO (Karnataka, India)
- Celebes Coconut Corporation (Butuan City, Philippines)
- SC Global Coco Products Inc. (Mandaluyong City, Philippines)
- Barlean's (Washington, U.S.)
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Industry Developments
- April 2019: Marico Limited, a prominent FMCG company in India, introduced a vegan gourmet line under the brand Coco Soul, featuring 100% organic and naturally infused cold-pressed virgin coconut oil variants.
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