While the UK's coconut water is thriving, new research has shown that there are further markets that could expand in global coconut water market, according to market research organisation Datamonitor.
Findings showed that although UK consumption is due to near 25m litres in 2015, much higher growth is expected from Japan, Canada, and neighbouring France, according to Datamonitor.
‘Tough’ markets
Datamonitor said these markets may be tougher nuts to crack due to flighty or sceptical consumers, or a simple lack of innovation, as has been the case in Canada so far.
However, Datamonitor said the correct product and branding could inspire uptake and that there appeared to be untapped opportunity across the global marketplace.
“With the focus very much on the US and Europe, some wealthy, health-conscious markets have been missed out by coconut water brands,” said Sara Grady, Analyst for Datamonitor Consumer. “Japan has the potential to be worth almost $500m by 2019 as coconut water directly appeals to on-going demands for functional wellness products,” she said.
Developments towards packaged coconut water
Datamonitor said that regions like Malaysia and Indonesia, where unpackaged coconut water dominates, are not expected to see strong changes in consumption habits. However, socio-economic shifts in Brazil, Mexico, and India, which are also currently dominated by unpackaged coconut water, are thought to be driving development towards the packaged sector.
According to Datamonitor, it is now up to producers to enter these markets with affordable launches that align with wider interests enough to pull consumers away from fresh produce.
“While some key emerging markets have a strong unpackaged coconut water tradition, there is a growing audience for packaged options in perhaps unexpected regions,” Ms Grady said. “Producers investing in markets like India and Brazil should be sure to convey the convenience and hygiene benefits of choosing a packaged drink in order to drive success,” she said.
India’s bottled water uptake shows coconut water success possible
Datamonitor said that although moving these markets towards packaged coconut water might seem implausible, the rapid uptake of bottled water in India should be taken as a lesson that consumption habits can be changed if adequate reason is given by brands.
With packaged coconut water already gaining ground in Brazil, Datamonitor said there was clearly an opportunity to capitalise on interest from developing markets.
