Coconut Syrup Market Size, Share & Industry Analysis, By Nature (Organic, Conventional ), By Application (Bakery, Confectionery, Beverages, Dairy) And Regional Forecast, 2024-2032

Coconut syrup is a natural sweetener that is made from the nectar of coconut palm flowers. The coconut syrup is widely used in the food industry as it contains iron, potassium, calcium, zinc along with 17 essential amino acids. The natural sweeteners are gaining traction from the consumers due to their growing health concerns, which has led the manufacturers to utilize coconut syrup over regular cane sugar and honey in processed foods. Further, due to its low glycemic index, it has low impact on blood sugar levels in the body which makes it a healthier sweetener. This has led to its incorporation in various beverages such as lemonades, smoothies, and healthy dairy-free products.

The consumers shifting preferences towards organic and healthy sweeteners as they are healthier than the conventional variants is fuelling the coconut syrup market. Moreover, the coconut syrup is widely incorporated in various processed foods and beverages such as juices, tea, coffee, and bakery products to impart sweetness and enhance its nutritional properties, which is also boosting its market growth.

The increasing demand among consumers for natural flavoring and sweetening ingredients with the same taste and sweetness like sugar syrup is majorly driving the coconut syrup market. The coconut syrup has widely been used as an alternative sweetener to cane sugar and honey owing to its nutritional properties, along with being vegan and free from any artificial preservatives. Further, the rising demand for minimally processed food ingredients is also a driving factor in market growth.

Coconut syrup contains the same amount of calories and sucrose content as cane sugar which raises the blood triglycerides and lowers good cholesterol levels in the body. Further, more amount of coconut syrup has to be used to achieve the same level of sweetness as cane sugar and honey, which can increase calorie consumption. This leads to various negative health effects such as diabetes and obesity, which is hampering its market growth.

Key Players Covered:

The key companies operating in the global coconut syrup market are, Bali Nutra Ltd., Tradin Organic Agriculture B.V., Wholesome Sweeteners Inc., Benevelle Corporation, (PT) Wildly Organic, Coconut Secret, Coconut Merchant Ltd., Treelife, Rockwell's Whole Foods, and Wuhu Deli Foods Co., Ltd.

The conventional coconut syrup is likely to hold the major share in the market owing to its comparatively cheaper price than the organic variant. Along with this, the availability of conventional products is more in the market. The manufacturers operating in the coconut syrup industry prefer the conventional variant over organic due to their lower manufacturing and production costs.

The consumers increasing demand for healthier sweeteners due to their growing health consciousness has influenced the manufacturers to start incorporating coconut syrup as a sweetening agent in the products such as ready-to-drink beverages, cookies, chocolate bars, and others. This is expected to further drive its market in the upcoming years.

Regional Analysis:

North America is anticipated to witness robust growth in the market due to the wide consumption of beverages. The consumers are opting for healthier sweetening alternatives in their beverages owing to the associated health risks of consuming sugar. According to the American Diabetes Association, in the year 2018, nearly 10.5% of the U.S. population had diabetes, which has led the consumers to shift towards sweeteners with low glycemic index. This has led to an increase in demand for coconut syrup, which in turn is expected to fuel its regional market.

Asia Pacific is expected to foresee significant growth due to the growing recognition and utilization of coconut syrup as a natural sweetening and flavoring agent. Indonesia is the largest producer of coconut, which ensures abundant raw material availability in the region. Further, the growing inclination of consumers towards consuming healthier products, especially the millennials will influence the manufacturers to expand their production capabilities to meet consumer needs, which is expected to drive the market in the region.

Segmentation

Key Industry Developments

• In October 2019, Marico Limited, launched coconut spreads under its vegan gourmet food range which is free-from additives and concocted using coconut milk and syrup in India. These product launches will fuel the demand for natural sweetening agent such as coconut syrup in the market.


• In September 2016, Buko Foods Ltd. launched three new organic coconut jams made using coconut nectar syrup and milk in U.K. The product launch will aid the company in expanding the product range made with coconut syrup, which in turn increased the demand of coconut syrup.