Coconut products are derived from coconut which is known for its significant nutritional values. Virgin coconut oil is widely popular for culinary uses in the region along with various other end products like coconut milk powder, desiccated coconut and coconut snacks. Coconut water acts as a refreshing thirst-quencher in the hot climate and is gaining popularity among the health-conscious population in Middle-East countries.
The global Middle East Coconut Products Market is estimated to be valued at US$ 1115.91 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing health awareness regarding the nutritional properties of coconut products is one of the major drivers fuelling the market growth. Virgin coconut oil contains medium chain fatty acids that are easily digestible and help maintain heart health. The increasing demand for healthier alternatives to packaged food items is also boosting the sales of fresh coconut and coconut water across the region. In addition, rising adoption of coconut products in applications like personal care and agriculture is expected to provide lucrative opportunities for market players over the forecast period 2024-2031. However, the seasonal supply of raw materials poses a challenge for consistent production.
SWOT Analysis
Strength: The Middle East region has ideal climatic conditions for coconut cultivation. Being located in tropical areas close to equator ensures abundant sunshine and rainfall required for coconut trees to thrive. Countries like UAE, Saudi Arabia, and Oman grow coconuts commercially in dedicated farms. This local availability of raw materials reduces procurement costs for coconut product manufacturers.
Weakness: Low productivity of coconut farms continues to be a key issue in the Middle East region. Traditional farming methods and lack of adoption of high-yielding coconut varieties have kept the yields low. Additionally, shortage of skilled labor and lack of advanced processing infrastructure are some weaknesses of the Middle East coconut products market.
Opportunity: Growing health conscious population and rising disposable incomes are fueling the demand for healthy coconut products in Middle Eastern countries. Manufacturers have an opportunity to introduce new healthy product varieties such as virgin coconut oil, coconut water, and dried/powdered coconut products. Furthermore, expanding exports to neighboring African and European markets present new opportunities.
Threats: Seasonal variations and climate change pose a threat to stable production of coconuts in the region. Pests and crop diseases could damage coconut farms. Additionally, availability of substitutes like almond and cashew products act as a market threat. Stringent food safety and quality regulations in import markets challenge export sales of Middle Eastern coconut products.
Key Takeaways
The Global Middle East Coconut Products Market Demand is expected to witness high growth. The global Middle East coconut products market is estimated to be valued at US$ 1115.91 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2031.
Being located in the tropical regions around Persian Gulf, countries like UAE, Saudi Arabia and Oman have ideal climatic conditions for coconut farming. UAE is currently the largest producer and exporter of coconut products in the region. The country grew its coconut harvest by 15% in the last two years by improving yield per hectare through adoption of scientific cultivation techniques. Saudi Arabia is steadily emerging as another major coconut growing hub with government schemes to promote coconut farming as a lucrative alternative crop.
Key players operating in the Middle East coconut products market are VV Group, P.T. Harvard Cocopro, Naturoca, Samar Coco Products, KKP Industry, S&P Industries Sdn Bhd, Karshakabandhu Agritech,Prima Industries Limited, Kerafed,Coconut industries (S) Pte Ltd . The major exported coconut products include coconut water, coconut oil, desiccated coconut powder, creamed coconut and coconut snacks. VV Group and P.T. Harvard Cocopro hold a leading share in coconut water segment. Meanwhile, Naturoca and Samar Coco Products control over 35% share in coconut oil market in Middle East region.
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