Virgin Coconut Oil Market to Reach Valuation of USD 4 Billion by 2028 - Rising Health Benefits from Virgin Coconut Oil is Expected to Generate Revenue in the Market

In terms of revenue, the Global Virgin Coconut Oil Market is expected to reach USD 4 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 9.50% during 2022-2028.

Virgin Coconut Oil is an edible oil extracted from the kernel or meat of mature coconuts harvested from coconut palms. The major factors driving the growth of the market are the increasing health benefits offered by Virgin Coconut Oil and its increasing popularity in developed countries.

Key Findings:

• The coconut RBD oil sub-segment of the product type segment is anticipated to dominate the Virgin Coconut Oil Market. The increasing health benefits and rising awareness of RBD coconut oil is a major factor for the segment to flourish in the coming years.

• The application segment accounted for the largest market share in 2021 for the Virgin Coconut Oil Market. Virgin Coconut Oil is extensively consumed in food industries among other coconut products. Many Asia Pacific countries and European countries widely use coconut products in food and bakery industries.

• Asia Pacific is the largest regional segment. This surge is attributed to the rising demand for Virgin Coconut Oil in developing economies such as India, China, and Indonesia.

The availability and supply of coconut fruits largely affect the price of copra. According to research, it is found that approximately 85% of the Virgin Coconut Oil production cost is comprised of expenses related to copra production. Producers and exporters offer lower prices on bulk sales rather than retail of chemical solvents and therefore is not recommended in food. Consumption of virgin coconut oil peaked in 2018 as it originally grew in popularity as a health food, causing the price to increase significantly as well. However, alternatives to Virgin Coconut Oil are slowly emerging in the market. Ghee is becoming popular and interest is gathering pace on the back of diets.

Asia Pacific dominated the Global Virgin Coconut Oil Market in 2021 and is likely to continue the same trend during the forecast period. An increase in government initiatives and support for Virgin Coconut Oil growth is likely to generate demand in this region for this market in near future. Increasing demand for Virgin Coconut Oil for a healthy diet and increasing inclination towards awareness of health in countries such as India & China are further adding to the spotlight. Significant improvements in the coconut oil intake of the young generation, especially in the developing economies, are providing a thrust to the Virgin Coconut Oil Market growth.