Asia Pacific To Account For The Largest Share Of The Global Virgin Coconut Oil Market
Coconut is one of the most widespread plantations, which is mostly grown in the humid and semi-humid regions of the world. Around 80% of the global production is produced in the Asia Pacific regions. The coconut oil which is removed from coconut has critical use in toiletry, food & beverages industry, and several other industries. Aside from this, it is likewise used in the pharmaceutical industry particularly by diabetic patients as it helps in the valuable utilization of blood glucose. Other than ordinary coconut oil which is removed from coconut, there has been a rise in the demand for virgin coconut oil in the course of recent years.
The Virgin Coconut Oil (VCO) is the purest form of coconut oil which is extracted from coconut milk that is acquired from 12 months of pollination through natural or mechanical processes. It does not experience bleaching, any chemical changes or chemical or heating process. The Virgin Coconut Oil Market is nutritious and rich in fatty acids and includes antioxidants, vitamins, and minerals. It has been witnessed that the product is gaining popularity amongst the health conscious people and is further gaining traction all over the world as nutraceutical food oil. The Virgin Coconut Oil Market is projected to grow at a considerable rate over the coming years owing to the rising public awareness and growing investments by manufacturers for this product.
Rising health consciousness among consumers has resulted in spending more on healthy products, which is expected to further increase the sales of the product in the market. In a year, the worldwide production of coconut has been estimated to be approximately 55 million tons. Indonesia and Philippines are the two major producers of the product across the world, with India capturing the third place. In India, the annual production of coconut is around 2,044 cr from 19.8 lakh hectare area. In India, Kerala accounts for the largest producer with around 40% of the country’s total coconut production.
Government Investments and Initiatives to Drive the Growth of the Virgin Coconut Oil Market
One of the major factors driving the growth of the market is the increasing investments in the market, which has supported the leading competitors to increase their production capabilities and to meet the increased demand for coconut oil from the customers. Moreover, government policies supporting key competitors have helped augment growth opportunities. For example, the Sri Lankan government announced that it will be dispensing budgets for its Kapruka Ayojana loan scheme to provide loans and subsidies to coconut manufacturers for improving their production. In India, to extract virgin coconut oil, a new production facility is being constructed at the Indian Council of Agricultural Research-Central Coastal Agricultural Research Institute (ICAR-CCARI), Goa.
APAC Accounted For The Majority Of Virgin Coconut Oil Market Share
On the basis of the geographical analysis, Asia Pacific accounted for the largest share of the overall market in 2016 and is expected to continue its dominance during the forecast period. The region is the largest producer of VCO, and most of the oil produced in the region is mainly exported to other geographic regions. With the growing demand for VCO, the leading competitors in the market are finding it difficult to meet the high demand from customers. Various governments in the region are extending technical support to the players to amend their production capabilities. For example, the Coconut Development Board under the Ministry of Agriculture in Kerala, India is providing technical guidance and support to the industry players to help increase their production.
Competitive Landscape: Global Virgin Coconut Oil Market
The virgin coconut oil market is exceedingly fragmented in light of the presence of various small and large-scale vendors. The global virgin coconut oil market is liable to quickly changing consumer demands and inclinations, where the manufacturer performance might be influenced by the changing buyer spending patterns. Because of higher customer dependence, the key variables affecting the opposition among players are price, quality, development, reputation, and distribution. The changing economic conditions and the presence of various players in the market will influence organizations and intensify competition among players throughout the following couple of years.