Virgin Coconut Oil Market – Global Industry Size, Share, Trends, Opportunity and Forecast, By Type (Organic, Inorganic), By Application (Direct Consumption, Industrial Consumption), By Distribution Channel (Offline, Online), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.12 Billion
CAGR (2026-2031)	8.92%
Fastest Growing Segment	Offline
Largest Market	Asia Pacific
Market Size (2031)	USD 1.87 Billion

Market Overview

The Global Virgin Coconut Oil Market will grow from USD 1.12 Billion in 2025 to USD 1.87 Billion by 2031 at a 8.92% CAGR. Virgin Coconut Oil is defined as the oil obtained from the fresh, mature kernel of the coconut by mechanical or natural means, with or without the use of heat, and without undergoing chemical refining, bleaching, or deodorizing. The primary drivers supporting the market's growth include the deepening consumer awareness of the oil's functional health benefits and the escalating demand for natural, chemical-free ingredients within the personal care and cosmetics industries. These foundational drivers are distinct from temporary market trends, representing a structural shift toward clean-label nutrition and sustainable beauty solutions rather than short-lived dietary fads.

However, the market faces a significant challenge concerning the volatility of raw material supply caused by adverse climatic conditions. According to the United Coconut Association of the Philippines, coconut oil production was projected to decline by 15% in the 2024-2025 marketing year due to the El Niño weather disturbance. This unpredictability in yield creates supply chain constraints and raw material price instability, which can substantially impede the consistent expansion and price competitiveness of the global Virgin Coconut Oil market.

Key Market Drivers

Supportive Government Initiatives and Export Promotion Policies are acting as a primary catalyst for the Global Virgin Coconut Oil Market, creating new trade avenues and stabilizing industry revenue. Governments in major coconut-producing nations are actively implementing strategic protocols to access high-value international markets, thereby mitigating the impact of domestic consumption slumps. For instance, recent bilateral trade agreements have allowed for the official export of fresh and processed coconut products to major economies like China, significantly boosting sector confidence. According to Vietnam News, February 2025, in the article 'Coconut exports reach 14-year high', the implementation of these official export protocols helped Vietnam’s fresh coconut and coconut product exports surpass USD 1 billion in 2024, marking a historic milestone for the industry.

Simultaneously, the Expanding Applications in Functional Foods and Nutraceuticals are driving robust demand for high-quality kernel products, including virgin coconut oil, which is increasingly favored for its medium-chain triglyceride (MCT) content. This trend is shifting production focus from raw commodities to value-added derivatives that command premium prices in the global wellness market. According to the Sri Lanka Export Development Board, January 2025, in the 'Export Performance in December 2024' report, export earnings from coconut kernel products, which include virgin coconut oil, generated approximately USD 458.25 million in 2024. Reinforcing this trajectory of market expansion, according to the United Coconut Association of the Philippines, October 2024, in their monthly trade review, the country's total coconut product exports for the first nine months of 2024 rose by 25.9% in volume compared to the same period in the previous year, highlighting the sector's resilience and growing global reach.

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Key Market Challenges

The volatility of raw material supply, precipitated by adverse climatic patterns, poses a formidable barrier to the commercial scalability of the Virgin Coconut Oil market. Since the extraction of high-quality virgin oil necessitates fresh, mature kernels, the industry is uniquely vulnerable to weather-induced yield fluctuations. This unpredictability prevents manufacturers from assuring consistent availability to major retailers and cosmetic formulators, who prioritize supply chain reliability above all else. Consequently, frequent shortages drive input costs higher, rendering the final product less attractive to price-sensitive mass markets and eroding its competitive position against more stable botanical oils.

This constraint is quantitatively evident in recent trade performance, where supply deficits have forcefully contracted market activity. According to the United Coconut Association of the Philippines, in 2025, the volume of coconut oil exports slumped by 31.2% to 110,198 metric tons in April relative to the prior year, driven by acute raw material scarcity. Such significant contractions in exportable supply directly restrict market revenue potential and compel international buyers to switch to alternative ingredients, thereby stalling the broader adoption of virgin coconut oil despite its functional appeal.

Key Market Trends

The Expansion of Private Label and Direct-to-Consumer Retail Channels is reshaping the competitive landscape, as major retailers and wellness brands increasingly outsource production to specialized Original Equipment Manufacturers (OEM) to bypass the capital intensity of processing infrastructure. This strategy allows for the rapid scalability of premium, customized virgin coconut oil offerings, catering to price-conscious yet quality-demanding consumers who prioritize brand trust over manufacturer origin. This structural pivot toward contract manufacturing is quantitatively evidenced by the robust financial performance of key industry players. According to Century Pacific Food Inc., April 2025, in their 'FY2024 Financial Results' disclosure, the company's OEM Exports segment, which includes high-value coconut products, posted a significant 36% year-on-year revenue increase, highlighting the surging global reliance on third-party manufacturing for private label expansion.

Simultaneously, the Diversification into Plant-Based Dairy Alternatives and Creamers is establishing virgin coconut oil as an indispensable functional ingredient, specifically utilized to replicate the texturizing and mouthfeel properties of milk fats in vegan formulations. Unlike generic cooking applications, this trend drives demand for high-purity oil variants that serve as the lipid base for lactose-free butters, cheeses, and yogurts, insulating the market from commodity price shocks through value-added integration. This application-specific demand has catalyzed substantial trade growth in regions specializing in these derivatives. According to the Sri Lanka Export Development Board, January 2025, in the 'Export Performance in December 2024' report, export earnings from coconut oil specifically expanded by 24.05% in 2024 compared to the previous year, reflecting the critical role of this ingredient in the burgeoning plant-based sector.

Segmental Insights

The Offline distribution channel is currently emerging as the fastest-growing segment in the Global Virgin Coconut Oil Market, driven by the increasing consumer prioritization of product authenticity and quality verification. Shoppers strongly prefer physical retail outlets, such as supermarkets and specialty health stores, as these venues allow for the immediate inspection of packaging integrity and labeling compliance mandated by food safety regulations. This tangible verification process fosters higher consumer trust compared to digital channels, particularly for premium health-focused products. Furthermore, the rapid expansion of organized retail infrastructure in developing economies is significantly accelerating product accessibility and sales volume through brick-and-mortar stores.

Regional Insights

Asia Pacific maintains a dominant position in the global virgin coconut oil market, primarily driven by extensive coconut cultivation in key nations such as the Philippines and Indonesia. This abundance of raw materials supports a robust manufacturing sector capable of fulfilling large-scale international demand. The market is further strengthened by established agricultural practices and quality standards promoted by organizations like the International Coconut Community, which facilitate consistent production and trade. Consequently, the combination of high production capacity and a mature supply chain firmly establishes Asia Pacific as the central hub for this industry.

Recent Developments

• In July 2025, Metro Pacific Agro Ventures completed the acquisition of the Franklin Baker Group of Companies, a historic manufacturer known for its premium desiccated coconut and virgin coconut oil. This major consolidation united Franklin Baker with Axelum Resources Corp. under a single agribusiness platform, creating a globally competitive entity in the coconut industry. The strategic acquisition enabled the combined group to optimize supply chains, enhance processing capacities, and better serve the international demand for coconut derivatives. The initiative was also focused on stabilizing operations and clearing export backlogs while supporting the livelihoods of thousands of coconut farmers across the network.
• In February 2025, Thai Coconut Public Company Limited announced the construction of a new manufacturing facility at the Anflo Industrial Estate in Panabo City, Philippines. This expansion into the country's largest coconut-producing region was designed to secure a steady supply of raw materials for the company's value-added product lines, including coconut oil and desiccated coconut. The move leveraged the Philippines' rich agricultural resources and deep-water port access to enhance the company's export capabilities. By establishing this new hub, the company aimed to strengthen its position in the global market and address the growing requirement for high-quality coconut ingredients.
• In September 2024, Century Pacific Food, Inc. acquired a 100% stake in Coco Harvest Inc. for approximately $40 million to expand its production capacity in the high-value coconut sector. Coco Harvest, located in Misamis Occidental, operates a fully integrated facility capable of producing coconut water, desiccated coconut, and virgin coconut oil. This strategic expansion allowed the company to meet the surging international demand for health-focused coconut products while generating over 1,500 manufacturing jobs in the region. The acquisition was funded through internally generated cash flows and aimed to provide consistent market access for local coconut farmers.
• In April 2024, Axelum Resources Corp. renewed a multi-year supply agreement with The Vita Coco Company, Inc. to support the latter's growing requirements for coconut water and related products. Axelum, a prominent manufacturer in the Global Virgin Coconut Oil Market, emphasized that this strategic collaboration would sustain its high-volume export operations and bolster its broader product portfolio, which includes desiccated coconut, coconut milk powder, and virgin coconut oil. The renewed deal solidified the long-standing partnership between the two entities, leveraging Axelum's advanced manufacturing capabilities to capitalize on the rising global consumption of plant-based beverages and natural ingredients.

Key Market Players

• Sun Bionaturals (India) Private Ltd
• Nutiva Inc.
• iTi Tropicals, LLC
• Greenville Agro Corporation
• Marina Foods Pvt Ltd
• Edward & Sons Trading Co.
• The Hain Celestial Group, Inc.
• Barlean’s Organic Oils, LLC
• Nurture Brands Ltd
• Mountain Valley Springs India Private Limited

By Type	By Application	By Distribution Channel	By Region
Organic Inorganic	Direct Consumption Industrial Consumption	Offline Online	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Virgin Coconut Oil Market, By Type:

• Organic
• Inorganic

• Virgin Coconut Oil Market, By Application:

• Direct Consumption
• Industrial Consumption

• Virgin Coconut Oil Market, By Distribution Channel:

• Offline
• Online

• Virgin Coconut Oil 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