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Setting Up Packaged Coconut Water Plant in India

India packaged coconut water market

Consumer Goods and Retail | Jul, 2021

India coconut water market is anticipated to grow with an impressive CAGR in the upcoming years with factors like surging demands and rising inclination of the health conscious population of the country backing up the growth in the future market. Coconut water is by far the leading plant-based drink available for sale across the globe. In 2016, coconut water accounted for approximately 95% of the volume share in the global sales of all plant-based water, with more than 700 million liters sold and with a market value of about USD2.2 billion. In the US, coconut water market is projected to experience a continued growth in market size, growing from USD612.5 million in 2015 to USD1.98 billion in 2019. Some of the top brands that process coconut water in the US are Vita Coco, Zico, and One’s Coconut Water. To cater the rising demand for packaged coconut water, most of the coconuts are being sourced from Brazil and Thailand.

In tropical countries such as India, Indonesia, Philippines and Sri Lanka, coconut water is consumed fresh, i.e., in unpackaged form, directly from coconuts sold by street vendors. In India, many new brands such as Tendo (Pure Tropic) and Coco Sip (Manpasand Beverages) have entered the packaged coconut water market, while existing brands such as Cocojal (Jain Agro) and Real Activ (Dabur) are targeting new markets. In 2017, Coca-Cola launched its brand Zico (now in test marketing) in India.

Major factors that impact the coconut water quality?

Coconut water is best consumed fresh, with the large resources in the southern region of the country the population of the country does get to enjoy the freshness and nutritive value of the beverage. Ingredients like acids, sugar, phenolic compounds and mineral content are some of the superficial aspects that adds to the flavoring of the coconut water. Further, the process of coconut water extraction, formulation, processing and storage can also affect the flavor to a large extent. With the reference to their growing period, between 7-9 months, the sweetness of coconut water increases to its maximum when sugar content increases. From 10-13 months, the sugar levels decrease, and coconut water tastes less sweet. This is represented by total soluble solids. The experts also warn us against storing the beverage at room temperature of 25 degrees as the taste turns sour in the warm temperature. Due to various oxidative and fermentation reaction that takes place at the room temperature, higher amount of acid production takes place that changes the flavoring of the by product.

Pre-harvest factors

Several factors during the production and pre harvesting process of coconut affects the quality of the coconut water and would reflect on the artificially packaging turning the minimal quality product at the end. Factors like use of pesticides during production, and heavy metals that could enter coconut water through water contamination, affect the quality to serious consequences.

Post-harvest factors

Post-harvest factors like microorganisms infestation can affect the overall quality, flavor, rancidity, acidity of the coconut water along with other characteristics. These microorganisms can enter coconut water through improper post-harvest handling and further processing techniques. The fermentation process of sugar in the coconut water takes place due to the presence of microorganisms. These microbes feed on the sugars in coconut water and produce acid and gas, thus causing it to ferment further and spoil the flavor. They contribute to the breakdown of the fat present in coconut water and causes it to turn rancid. The breakdown of the small quantities of protein in coconut water, and foul rotten egg like smell is observed that to a certain extent smells like sulfur.

Also, storage conditions of the coconut post-harvest, and storage conditions of bottled coconut water can get compromised due to certain attributes. If the coconut water is stored in high temperature, the increased temperature stimulates the respiratory rate of the coconut post-harvest, leading to rapid quality deterioration of the water within the intact coconut. If stored in bottled form, high temperature increases the rate of microbial growth within the bottled product, thereby reducing its shelf-life.

Business Plan:

In a market research report by TechSci Research, “India Packaged Coconut Water Market, By Type (Natural & Blended), By Sales Type (Grocery/Convenience Stores, Online & Others), By Packaging Type (Plastic Bottles & Others), By Distribution Channel, Competition Forecast & Opportunities, 2013-2023”, the report mentions the probable scope of the growth of the market in the upcoming years. With increasing awareness among consumers, rising health consciousness and further product innovations, there is good potential for packaged coconut water along with traditional soft and sports drinks in the Indian market. Food retailing in India is experiencing significant changes and growth due to rapid urbanization. While small independent unorganized stores, such as Kirana stores, small shops, etc., prevail, the modern organized retail formats such as supermarkets and grocery stores are becoming increasingly common in urban areas such as Delhi, Mumbai, Chennai, Kolkata, Bengaluru, etc. In India, coconut production stood at 23.90 billion nuts in 2017, registering a CAGR of 1.33% during 2013-2017, and is forecast to rise to 28.21 billion nuts by 2023, exhibiting a CAGR of 2.52%, during 2018-2023, owing to significantly rising demand for natural and healthier alternatives in the country. The import-export values show that the exports of coconuts and coconut related products are augmenting as compared to imports, leading to continuous increase in production. New market players would require following a swift business plan to enter the established market in the years to come.

Pointers to keep in mind to start a coconut water production company:

·         Learn more about the business

·         Craft your business plan

·         Register your business and fulfil legal requirements

·         Find a good location

·         Buy and install equipment

Manufacturing Process:

Fresh coconuts are purchased from harvesters and are processed further before packaging and branding. The complete process includes the filtration process, mechanical process and sealing procedure using different machines & wrapped and delivered it to distributors.

Manpower requirement: (Approximation for 1 plant)

This will include the number of workers required.

Implementation Schedule:

This will include the project details with number of months that will require to complete one task (Approximation)

Cost of Project:

This will include an approximate amount require to construct a complete manufacturing unit that will include the cost of land, building, machinery, etc.

List of machines required:

This will include the number of machines that are required in the manufacturing unit of the packaged coconut water

Coconut Water Analysis

After the production and before sealing the packaging, the contents of the coconut water is analyzed and referred to see if they fulfill the standard requirements.

In another report by TechSci Research, “Australia Packaged Coconut Water Market By Type (Natural v/s Blended), By Sales Type (Retail Vs. Direct/Institutional), By Packaging Type (Plastic Bottle, Tetra Pack, Metal Can), By Distribution Channel (Supermarket/Hypermarket, Grocery/Convenience Store, Institutional Sales, Online, Others), By Company, By Region, Forecast & Opportunities, 2026”, the Australia packaged coconut water market is projected to register a robust growth with an impressive CAGR on the account of growing health awareness among the country’s population. With rapidly rising instances of general sickness and weakening health due to infectious diseases, the concern toward healthier beverage and food intake in rising thereby supporting the growth of the Australia packaged coconut water market in the upcoming five years. Also, the recent outbreak of COVID-19 virus shook the whole world. As much as the virus affected the health of the population, it also disrupted the economy of the world. Australia packaged coconut water market isn’t indifferent either. As much as it disrupted the supplier-distributor chain, the surge in the demand of fresh coconut water increased. With bringing their businesses online manufacturers reinstated the growth of their businesses. With now manufacturing units and distributors in place, the market is anticipated to grow in the next five years.