Global coconut syrup market is evaluated at US$410.667 million for the year 2019 growing at a CAGR of 4.77% reaching the market size of US$543.093 million by the year 2025. Coconut Syrup Market is expected to grow at a significant rate in the coming years. Coconut syrup, also known as a natural sweetener, is formed from the nectar of coconut fruit and flowers. The flowers release nectar or sap. The sap is then heated, and the water gets evaporate, which gives a yielding concentrated coconut syrup. The coconut syrup can also be prepared from the coconut water, citric acid, sugar, preservatives, and creamed coconut. It has a white appearance with a tangy, butterfly, and rich caramel-like flavor. It is mainly used in the food and beverage industries. It has a specific range of medical and health properties which will also lead to a surge in the demand for coconut syrup in the coming years. Natural syrups are being in constant demand in the market because of their nutritious properties. Coconut syrup has a significant presence in the Asia Pacific followed by North America and Europe.
Millennials are generating a significant impact on the market
The growing demand for natural and sugar-free products are developing a trend in the market. There are a lot of consumers that are now constantly changing their preferences. There is a surge in the sugar-free products led by health-conscious consumers worldwide. Because of that, natural sweeteners are gaining significant prominence worldwide. This gradual shift among the consumers has opened a new wave and a plethora of opportunities for various stakeholders in the natural syrup market. Food and beverage are making a significant impact on the market. The companies are investing a huge amount of capital into organic and conventional syrups. A coconut syrup comes in flavored and unflavored types. Nectar of the coconut flour is treated to avoid caramel flavor and fermentation. The processing of coconut syrup is very efficient and is free from additional harmful preservatives. It is generating a significant demand because of its phytonutrients and antioxidant properties. It is also useful and beneficial for the diabetic and obesity problems. Coconut Syrup is also known for its lower glycemic index. There is some research conducted by various prominent research institutions related to the coconut syrup ingredients. Chronic diseases are prevented by the lower glycemic index. The syrup has vitamin B, Vitamin C, amino acid properties, and benefits. It is also used as a flavor improver and as a topping for various bakery products. With the surging consumer knowledge about the health applications of a food product, the demand for the coconut syrup will continue to soar at a significant rate.
Organic Segment to Register a significant Growth
Organic segments and conventional segments are the two types of coconut syrup that comes under the nature segment. Conventional Coconut Syrup has a major and a substantial share in the market and will continue to have significant growth. This is due to the fact the average life of the coconut tree is around 40 years and which removes the hurdle of continuous replantation. Conventional Syrups have additional preservatives. On the other hand, Organic Syrup is free from preservatives and has a comparatively lower glycemic index as compared to agave, honey, and cane sugar. Organic Syrup will also have a decent growth owing to various consumer preferences. In the future, the supply chain of conventional coconuts could be disrupted due to low and minimum yields, which in turn could be beneficial for the organic coconut suppliers. But, in the term, the conventional segment will continue to hold a significant share.
Liquid syrup segment continues to grow
The liquid segment holds the majority of the global market share because of its availability. There are other reasons such as the lower cost of the processing method. The powdered segment will also have a decent growth because of the surge in the number of players operating in the industry and investing more capital in R&D and Inventory.
Sweetening segment continues to have an impact
The sweetening Segment holds the majority of the share in the global coconut syrup market and will continue to have a significant impact in the future. This is due to its sweetening bending and applications in food and beverage segments. It sweetens or neutralizes the various taste in a specific beverage such as milk, alcohol, and others. The flavoring segment also holds a significant share after the sweetening segment as it is also in demand for its use in various beverages such as smoothies, cocktails, milk, and others. It is also used in various food-based products such as bakery, confectionery, salads and sauce and dairy.The preservative and texturing segment will also a significant growth.
Surge in the demand for coconut syrup in food products
The food segment will continue to hold the majority of the market share followed by the beverage segment. This is due to the demand for coconut syrup in various food-based products such as cakes, biscuits, sweets, chocolates, sauce, and salads. The beverage segment will also register significant growth in the market.
The offline segment such as supermarkets and retail stores have a major market share. Companies tend to direct the product to the consumer with traditional methods. It is a relatively novel market, and the manufacturers have a significant role in marketing and sales. The online segment will continue to grow as the demand for coconut syrup surges and continuous advancement in E Commerce sales, manufactures will tend to look at more options.
The Asia Pacific holds the majority of the share in the market in terms of revenue as well as exports. North America will register significant growth in the coming years due to the surge of health-conscious consumers. Europe will also have decent growth in the future. Asia Pacific region is leading because of the easier availability of the coconut fruit and a lot of farmers are in the coconut cultivation sector. The region has the most population and is the fastest-growing region. Countries like Indonesia, Thailand, the Philippines, Sri Lanka, and India are some of the major exporters of Coconut worldwide. China and the USA are the major importers of Coconut.
Some of the major Coconut Syrup Companies are Singabera, Treelife Coco Sugar, Coconut Secret, Holos Integra, Bali Nutra Ltd., Benevelle Corporation, Andy Alabo Corporation, Wholesome Sweeteners Inc., Wichy Plantation Company Pvt Ltd., Coconut Merchant Ltd. There is considerable competition as there are a substantial number of manufacturers worldwide. Local players have an imperative role in the Coconut Syrup Industry. Bigger Companies are investing significant capital in the R&D and innovation of natural sweeteners.