Desiccated Coconut Powder Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Form (Fine and Granular), By Application (Dairy Products, Bakery, Frozen Dessert, Confectionary, and Others), By Distribution Channel (Online and Offline), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 5.62 Billion
CAGR (2026-2031)	4.86%
Fastest Growing Segment	Online
Largest Market	North America
Market Size (2031)	USD 7.47 Billion

Market Overview

The Global Desiccated Coconut Powder Market will grow from USD 5.62 Billion in 2025 to USD 7.47 Billion by 2031 at a 4.86% CAGR. Desiccated coconut powder is the grated and dried meat of a mature coconut, processed to remove moisture while retaining its natural flavor and nutritional content. This versatile ingredient is extensively utilized in the bakery and confectionery industries to enhance texture and aroma in products such as cakes, pastries, and fillings. The market is primarily driven by the escalating global demand for plant-based and gluten-free food alternatives, as manufacturers increasingly substitute artificial additives with natural, high-fiber ingredients to cater to health-conscious consumer preferences.

According to the 'United Coconut Associations of the Philippines', in '2024', cumulative exports of desiccated coconut reached 122,903 metric tons during the first nine months of the year. Despite this strong trade activity, the market faces a significant challenge regarding raw material price volatility linked to unpredictable weather patterns such as El Niño. These climatic disruptions frequently compromise crop yields and supply chain stability, creating obstacles that could impede consistent market expansion.

Key Market Drivers

The expansion of the bakery and confectionery industries acts as a primary catalyst for the desiccated coconut powder market, given the ingredient's critical role in enhancing texture, flavor, and moisture retention in cakes, pastries, and biscuits. As manufacturers innovate to meet the craving for premium and artisanal baked goods, the uptake of high-quality desiccated coconut has intensified significantly across global supply chains. This surge in industrial usage is reflected in trade performance data from major producing nations. According to the Sri Lanka Export Development Board, January 2025, in the 'Export Performance in December 2024' report, export earnings from desiccated coconut increased by 39.2% in 2024 compared to the prior year, highlighting the robust procurement activity by international food processors.

Rising consumer adoption of plant-based and vegan diets further propels market growth, as individuals increasingly seek natural, non-animal alternatives for their nutritional needs. Desiccated coconut powder serves as an essential, gluten-free bulking agent and flavor enhancer in vegan formulations, ranging from energy bars to dairy-free yogurts. This dietary shift has translated into substantial volume gains for key industry players. According to Axelum Resources Corp, April 2025, in the '2024 Annual & Sustainability Report', the company achieved a 36% increase in desiccated coconut sales volume for the year, largely attributed to the momentum of plant-based eating trends. Broader industry data corroborates this vibrant activity; according to the General Department of Customs Vietnam, in 2024, the total export value of the country's coconuts and coconut products reached nearly $1.1 billion, underscoring the expanding global footprint of these versatile ingredients.

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Key Market Challenges

The raw material price volatility stemming from unpredictable climatic patterns, particularly El Niño, stands as a formidable barrier to the growth of the Global Desiccated Coconut Powder Market. These weather induced disruptions significantly impact coconut palms by causing water stress that leads to delayed flowering and reduced fruit setting. Consequently, manufacturers face inconsistent supplies of the mature coconut meat required for producing high quality desiccated powder. This instability forces processors to navigate unpredictable input costs that erode profit margins and hamper their ability to commit to stable pricing for international buyers, thereby creating hesitation in the supply chain and stalling market expansion.

The severity of this supply constraint is evident in recent production statistics which highlight the direct link between climatic stress and reduced output. According to the 'United Coconut Associations of the Philippines', in '2025', coconut yields were estimated to have declined by approximately 20% throughout '2024' due to the adverse dry conditions associated with El Niño. This substantial contraction in the availability of raw materials restricts the operational capacity of processing facilities and limits the volume of desiccated coconut powder available for export, directly countering the upward trend in global demand.

Key Market Trends

The Growing Preference for Organic and Sulphur-Free Desiccated Coconut is reshaping production standards as health-conscious consumers increasingly demand clean-label ingredients devoid of chemical preservatives. This shift has compelled producers to overhaul cultivation practices, moving away from conventional methods to certified organic farming to secure access to premium international markets like Europe and the United States. This structural pivot is evident in major production hubs; according to the Ministry of Agriculture and Rural Development, February 2025, in the 'Coconut export reached 14-year high' report, one-third of Vietnam's 200,000 hectares of coconut plantations now meet organic standards, directly catering to this escalating global requirement for natural and high-purity food inputs.

Simultaneously, the Surge in Online Retail and Direct-to-Consumer Distribution is transforming how manufacturers deliver desiccated coconut products to both end-consumers and small-scale artisanal bakers. By leveraging digital platforms, companies are successfully bypassing traditional intermediaries, allowing for greater margin control and the ability to offer specialized product variations directly to the market. This digital momentum is yielding tangible financial results for key industry players. According to Axelum Resources Corp, November 2024, in the 'Axelum reports ₱339M profit for 9M 2024' press release, the company's local online selling operations grew by 40% year-on-year, highlighting the rapid adoption of e-commerce channels as a vital revenue stream within the broader market strategy.

Segmental Insights

The online distribution channel is recognized as the fastest-growing segment in the Global Desiccated Coconut Powder Market, primarily driven by the rapid expansion of e-commerce infrastructure and increasing digital literacy among consumers. This growth is accelerated by the convenience of home delivery and the ability to access a wider variety of products and competitive pricing compared to traditional retail outlets. Furthermore, improved logistics and supply chain capabilities allow manufacturers to reach a broader audience efficiently. This sustained shift in consumer purchasing behavior towards digital platforms establishes the online segment as a critical driver of market development.

Regional Insights

North America holds a dominant position in the Global Desiccated Coconut Powder Market, driven primarily by robust demand from the established bakery, confectionery, and ready-to-eat cereal sectors. The region exhibits a strong consumer preference for plant-based, gluten-free, and clean-label products, compelling food manufacturers to utilize desiccated coconut as a functional, natural ingredient. This market leadership is further reinforced by the United States Food and Drug Administration (FDA), whose rigorous safety protocols and clear labeling guidelines streamline imports and sustain commercial confidence in incorporating high-quality coconut products into processed food formulations.

Recent Developments

• In December 2025, Metro Pacific Coconut Holdings Corp. completed the acquisition of Franklin Baker Company, a prominent global supplier of desiccated coconut. This strategic takeover was executed to resolve operational challenges previously faced by the acquired entity and to ensure the continuity of its manufacturing capabilities. The deal allowed the parent company to integrate a historic brand into its expanding agricultural portfolio, thereby creating a more robust supply chain for coconut products. Company leadership emphasized that this investment would stabilize export volumes and support local farming communities, positioning the combined entity as a dominant force in the global desiccated coconut market.
• In December 2024, Betrimex collaborated with the Vietnam Coconut Association to organize "CocoNext 2024," an international conference held in Ben Tre City dedicated to the advancement of the coconut industry. The event served as a strategic platform for fostering collaboration among global business leaders, experts, and government agencies to discuss sustainable development and technological innovation in coconut processing. Betrimex utilized this forum to present its vision for a modernized value chain, emphasizing the importance of research and high-tech applications in producing value-added coconut products. The initiative aimed to strengthen the global standing of Vietnamese coconut offerings, including desiccated coconut, amid competitive market conditions.
• In July 2024, Century Pacific Food, Inc. announced a significant expansion of its coconut processing business, supported by a newly signed long-term contract with a global beverage brand. The company committed to investing approximately P4 billion to P5 billion in capital expenditures, a substantial portion of which was allocated to upgrading its manufacturing facilities in Mindanao. This initiative was intended to increase the production capacity for desiccated coconut, coconut water, and virgin coconut oil to meet surging export demands. The expansion underscored the company's strategic focus on growing its presence in the global coconut ingredients market and diversifying its revenue sources.
• In April 2024, Axelum Resources Corporation, a leading manufacturer in the coconut industry, finalized the renewal of a major supply agreement with The Vita Coco Company, Inc. This strategic collaboration was aimed at sustaining the high-volume export of coconut water while also bolstering the company's broader product portfolio, which includes desiccated coconut and coconut milk powder. The multi-year deal was described as a key driver for the company's growth, capitalizing on the increasing global consumption of coconut-based beverages. Executives noted that this partnership would ensure stable revenue streams and reinforce the firm's position as a premier supplier of high-quality coconut ingredients to international markets.

Key Market Players

• Marudhar Foods Pvt. Ltd.
• Primex Coco Products Inc.
• Royce Food Corporation
• Celebes Coconut Corporation
• Meghna Group of Industries
• Pacific Eastern Coconut Utama
• Sri Lanka Export Development Board
• Adamjee Lukmanjee & Sons Pvt. Ltd.
• PT Global Coconut
• Goya Foods Inc.

By Form	By Application	By Distribution Channel	By Region
Fine and Granular	Dairy Products Bakery Frozen Dessert Confectionary Others	Online and Offline	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Desiccated Coconut Powder Market, By Form:

• Fine and Granular

• Desiccated Coconut Powder Market, By Application:

• Dairy Products
• Bakery
• Frozen Dessert
• Confectionary
• Others

• Desiccated Coconut Powder Market, By Distribution Channel:

• Online and Offline

• Desiccated Coconut Powder 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