The global coconut sugar market was valued at US$1.25 billion in 2021 and is expected to surpass a valuation of US$1.89 billion in 2030. The market is estimated to grow at a CAGR of 4.8% during the forecast period.
The market is expanding as a result of the boom in applications of coconut sweeteners as an alternative to white sugar in beverages such as tea, coffee, and juices. Additionally, it has a lower glycemic index than cane sugar and honey and is eaten over a longer period during production, both of which are significant factors influencing the industry growth.
Additionally, because they have a lower glycemic index than ordinary white sweeteners, consumers demand them. This has encouraged producers to begin using coconut sweeteners rather than conventional sugar to meet consumer demand and give them healthier food options.
The organic segment is expected to hold a larger share due to the growing inclination of consumers toward clean-label and organic products. They are perceived to be healthier than the conventional variants as it is grown with synthetic pesticides free which are expected to increase their sales.
How is it Made?
Coconut sugar is a sweetener cultivated from the sap of the flower bud stem of the coconut palm. Owing to favorable cultivation conditions, The Philippines, Indonesia, and Thailand are major producers of coconut sugar and have accounted for about 80 percent of the global production over the past few decades.
Coconut sugar cultivation begins with ‘tapping’ the flower bud stem of a coconut tree, with farmers making a cut on its spadix. The sap inside then flows into containers placed below to collect it. The collected sap is then transferred into large works which are placed over moderate heat to evaporate excess water, thickening it into a thick syrup. It is now coconut sugar.
The Market
It is anticipated that North America will witness robust growth in the coconut sugar market due to the increase in snack consumption and snacking between meal trends. The rise in organic and clean-label food consumption trends in the region, especially the U.S., has increased the sales performance of coconut sugar in the region. According to the Organic Trade Association, organic food sales in the U.S. increased by 5.9 percent in 2018, which is expected to drive the regional coconut sugar market growth.
The Asia Pacific is expected to observe significant growth as coconut sugar has widely been utilized as a natural sweetener since time immemorial by the people in Malaysia and Indonesia. Along with this, Indonesia is the largest producer of coconut which makes the wide availability of raw material. Further, the rise in the disposable income of the consumers allows them to pay a premium price for the product, which has boosted its regional market growth.
The demand for coconut sugar in the European food market is growing. Increasing consumer demand for natural and high-quality food products in Europe creates an opportunity for coconut Sugar Suppliers in developing countries. Coconut sugar has unique properties and its increasing availability makes it a favorable choice for food manufacturers in Europe.
