Coconut Butter Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Organic, Conventional), By End-Use (Cosmetics and Personal Care Industry, Food and Beverage Industry, Others), By Distribution Channel (Supermarkets/hypermarkets, Convenience Stores, Online, Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.51 Billion
CAGR (2026-2031)	8.98%
Fastest Growing Segment	Online
Largest Market	Asia Pacific
Market Size (2031)	USD 2.53 Billion

Market Overview

The Global Coconut Butter Market will grow from USD 1.51 Billion in 2025 to USD 2.53 Billion by 2031 at a 8.98% CAGR. Coconut butter is a creamy spread produced by grinding coconut meat into a paste, retaining both oil and fiber to create a nutrient-dense alternative to dairy or nut butters. The market is supported by the structural shift toward plant-based and lactose-free nutrition, which serves as a fundamental growth driver distinct from transient consumption trends. Furthermore, the sustained adoption of ketogenic and paleo dietary regimens has solidified demand for high-fat, clean-label ingredients, positioning the product as a staple for health-conscious consumers globally.

Market expansion faces a significant challenge regarding raw material price volatility stemming from aging plantations and climatic variability in key export regions. These supply-side constraints often result in unpredictable production costs that may impede broader market accessibility. However, trade activity remains resilient. According to the United Coconut Association of the Philippines, in 2024, coconut product exports totaled 196,947 metric tons in September, marking a 30.1% increase compared to the same month in the previous year. This figure highlights the enduring global demand for coconut derivatives despite supply chain complexities.

Key Market Drivers

The increasing demand for dairy-free and lactose-free alternatives is a primary force propelling the global coconut butter market. As consumers increasingly prioritize plant-based nutrition, coconut butter serves as a critical functional ingredient, offering the creamy texture and fat content necessary to replicate conventional dairy butter in vegan formulations. This structural shift is quantitatively evident in the surging trade of closely related high-fat coconut derivatives used in similar clean-label applications. According to the Sri Lanka Export Development Board, in December 2024, export earnings from coconut milk powder and coconut cream—key indicators of the dairy-alternative category—recorded substantial year-on-year growth of 39.35% and 28.97%, respectively, for the January to November period. Such robust performance underscores the expanding role of nutrient-dense coconut fats in satisfying the global appetite for lactose-free products.

Simultaneously, the market is being bolstered by a surge in usage across the bakery and confectionery sectors, where coconut butter and its precursors are prized for their distinct flavor profile and binding properties. Food manufacturers are aggressively integrating these ingredients into cookies, cakes, and chocolates to appeal to health-conscious indulgers. Illustrating this industrial demand, Axelum Resources Corp. reported in April 2025 that its sales volume for desiccated coconut, a foundational input for coconut butter production and bakery applications, rose by 36% in 2024 due to renewed demand in key export markets. This sector-specific momentum contributes to the broader industry's resilience; for instance, according to the General Department of Customs Vietnam, in February 2025, the country’s total exports of coconut and coconut products reached nearly $1.1 billion in 2024, marking a growth of over 20% from the previous year.

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Key Market Challenges

Raw material price volatility and supply-side constraints constitute a primary barrier to the expansion of the Global Coconut Butter Market. Coconut butter production demands high-quality, mature coconut meat, a resource heavily dependent on stable climatic conditions. Aging plantations and weather anomalies, such as El Niño, frequently disrupt crop cycles, resulting in erratic yields and smaller nut sizes that are often unsuitable for meat-based processing. These biological limitations restrict the available feedstock specifically for butter manufacturers, forcing them into a volatile procurement environment characterized by fluctuating input costs and uncertain availability.

This constraint is evident in the divergence between general coconut trade and meat-specific derivatives. According to the United Coconut Associations of the Philippines, in September 2024, exports of desiccated coconut—a key meat-based product closely linked to butter-grade supply—declined by 4.6% to 13,720 metric tons compared to the previous year. This contraction in the meat segment, occurring even amidst a broader surge in lower-grade oil exports, highlights the specific scarcity of premium raw materials. Such instability undermines the ability of manufacturers to maintain competitive pricing and inhibits consistent market penetration.

Key Market Trends

The rising adoption of coconut butter in DIY personal care and beauty regimens is reshaping market demand, extending its utility beyond culinary applications. Consumers are increasingly utilizing the product’s rich fatty acid profile to create homemade skin moisturizers and hair masks, blurring the lines between pantry staples and cosmetic ingredients. This trend is driving a surge in the trade of specialized derivatives used as bases for these formulations. For instance, according to the United Coconut Association of the Philippines, June 2025, in the 'Export Performance of Philippine Top Non-Traditional Coconut Products in January 2025' report, shipments of hydrogenated coconut oil—a primary structural ingredient for cosmetic butters—more than doubled by 105.6% year-on-year to reach 3,150 metric tons. This distinct volume growth indicates a robust, parallel consumption channel that manufacturers are capitalizing on by marketing high-purity, multi-purpose tubs suitable for both eating and topical application.

Simultaneously, the market is witnessing a structural expansion of ethically sourced and fair trade supply chains, driven by corporate sustainability mandates and consumer scrutiny over raw material traceability. Stakeholders are aggressively forming pre-competitive collaborations to standardize harvesting practices and ensure living wages for farmers, thereby securing long-term premium positioning for their products. This industry-wide mobilization is evident in recent high-level convening efforts. According to the Philippine Coconut Authority, September 2024, in a press release regarding the 'Sustainable Coconut Roundtable 2024', the event galvanized more than 200 participants, including major global buyers and traders, to unify standards for responsible sourcing. Such coordinated initiatives are rapidly transforming voluntary sustainability certifications from a niche differentiator into a baseline requirement for market access in Western economies.

Segmental Insights

The online segment is identified as the fastest-growing distribution channel within the global coconut butter market, driven by the expanding reach of e-commerce platforms and shifting consumer purchasing behaviors. This growth is largely attributed to the convenience of digital marketplaces, which offer access to a wider variety of niche organic and plant-based products often unavailable in traditional physical retail outlets. Furthermore, the ability to review detailed ingredient information and product certifications online enhances trust among health-conscious buyers. Consequently, manufacturers are increasingly strengthening their digital supply chains to capitalize on this rising demand for accessibility.

Regional Insights

Asia Pacific stands as the dominant force in the Global Coconut Butter Market, primarily driven by its unparalleled abundance of raw materials. Nations such as the Philippines, Indonesia, and India serve as the world's primary coconut producers, establishing a stable and cost-effective supply chain for manufacturing. This regional leadership is further reinforced by the Asian and Pacific Coconut Community (APCC), an intergovernmental organization that coordinates production standards and trade activities among member states. Additionally, the region benefits from robust export channels catering to the growing international demand for plant-based dietary alternatives, cementing its position as the global market leader.

Recent Developments

• In November 2024, CocoGoodsCo, a supplier known for its single-origin coconut products from Vietnam, showcased its extensive portfolio, including coconut butter, at the Private Label Manufacturers Association (PLMA) trade show in Chicago. The company utilized the event to highlight its vertically integrated supply chain and to explore collaboration opportunities with potential retail partners in the North American market. By presenting its organic and conventional coconut butter options to industry professionals, the firm aimed to strengthen its position in the competitive private-label sector and expand its global market reach.
• In July 2024, Asiatic Agro Industry, a leading coconut product manufacturer based in Thailand, was reported to have unveiled a new unsalted coconut butter under its Cocomix brand. The product launch, which was showcased at the THAIFEX – Anuga Asia trade show, featured a versatile cooking staple designed for baking and savory dishes. The company emphasized that the new offering was rich in medium-chain triglycerides (MCTs) and lauric acid, catering to the growing demand for healthy, plant-based ingredients in both consumer kitchens and the food service industry.
• In July 2024, Kokada, a company specializing in coconut-based spreads, debuted a new product line at Sprouts Farmers Market locations across the United States. The launch introduced "Pretzel and Coconut Dip Snack Packs," which pair the brand's signature refined sugar-free coconut spread with gluten-free pretzels. This expansion into the grab-and-go snack category was part of the company's strategy to increase accessibility to its nut-free, vegan products. The collaboration with the major health-focused grocery retailer marked a significant milestone in the brand's nationwide distribution efforts.
• In May 2024, Herbivore, a New Zealand-based food manufacturer, expanded the retail presence of its plant-based coconut butter across major supermarkets in its home market. The company, founded to provide sustainable alternatives to dairy, positioned its product as a "world-class butter made from coconuts" that replicates the taste and performance of traditional butter in applications like baking and spreading. Media reports highlighted that the brand secured placement in over 180 stores, including New World and Pak'nSave locations, following its success in the food service sector and recognition at local food awards.

Key Market Players

• Windy City Organics LLC
• Windmill Organics Ltd.
• The Hain Celestial Group Inc.
• Hallstar Innovations Corp.
• Celebes Coconut Corp
• GOODFAT
• Artisana Organics
• Andy Albao Corporation
• Team Asia Corp.
• Wichy Plantation Co. Pvt. Ltd.

By Type	By End-Use	By Distribution Channel	By Region
Organic Conventional	Cosmetics and Personal Care Industry Food and Beverage Industry Others	Supermarkets/hypermarkets Convenience Stores Online Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Coconut Butter Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Coconut Butter Market, By Type:

• Organic
• Conventional

• Coconut Butter Market, By End-Use:

• Cosmetics and Personal Care Industry
• Food and Beverage Industry
• Others

• Coconut Butter Market, By Distribution Channel:

• Supermarkets/hypermarkets
• Convenience Stores
• Online
• Others

• Coconut Butter Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE