Coconut products such as coconut oil, coconut water, coconut flour are widely used in the Middle Eastern region. Coconut oil is used for cooking purposes owing to its high smoke point. Coconut water is a healthy beverage option as it is low in calories and rich in electrolytes. Coconut flour is used as a substitute for wheat or rice flour by health-conscious consumers. The global coconut products market is fragmented with the presence of several players operating in the region.

The global Middle East coconut products market is estimated to be valued at US$ 968.67 Mn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics
Increasing health awareness among Middle Eastern consumers regarding the nutritional benefits of coconut products is projected to drive the growth of the market over the forecast period. Coconut oil contains lauric acid that helps kill bacteria and viruses. It is also known to improve heart health due to the presence of medium chain fatty acids. Coconut water hydrates the body effectively owing to the electrolyte content and is gaining widespread popularity as a refreshing beverage. Furthermore, coconut flour is gaining recognition as a gluten-free alternative for baked goods. The growing preference for healthy substitutes in the food industry is estimated to propel the demand for coconut flour over the next few years. However, volatility in the cost of raw materials may hinder the market growth.

SWOT Analysis

Strength: The Middle East region has the right climate conditions for growing coconuts which helps drive production of coconut products at lower costs in the region. The growing health consciousness among consumers in Middle East countries is driving demand for natural and organic coconut products. Many government initiatives to boost coconut farming are positively impacting the supply of raw materials.

Weakness: Dependence on import of coconants from Asian countries makes the market vulnerable to supply chain disruptions. Lack of innovation and product diversification limits growth opportunities.

Opportunity: Rising consumption of plant-based foods and beverages presents an opportunity to introduce new varieties of coconut milk, cream and oil based products. Growing expatriate population from Asian countries boosts demand for familiar coconut products. Partnerships with leading global brands can help expand distribution and export opportunities.

Threats: Trade restrictions and geopolitical tensions can disrupt imports and supply chains. Low per capita incomes in some Middle Eastern markets constrain spending on value added products. High import duties imposed by some nations increase product costs.

Key Takeaways

The global Middle East coconut products market growth is expected to witness high. The global Middle East coconut products market is estimated to be valued at US$ 968.67 Mn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030.

Regional analysis comprises the Middle East region has been witnessing the fastest growth owing to increasing domestic production of coconuts and higher consumption of coconut products among the growing health-conscious population. The Gulf countries account for over 60% of the market share led by Saudi Arabia and United Arab Emirates emerging as the major markets.

Key players operating in the Middle East coconut products market are Thai Coconut Public Company Ltd., Vita Coco (All Market Inc.), Coco Veda Natural Products Inc., The Coconut Company Ltd., Merit Food Products Co., Ltd., Thai Agri Foods Public Company Ltd., Linaco, Marico Ltd., Hero Nature Products Pvt Ltd., and Chef’s Choice Foods Manufacturer Co. Ltd. These players are focusing on business expansion strategies through new product launches, collaborations and acquisitions to strengthen their market presence.

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