Coconut water market growth continues, but at smaller rate

Previously known for bikini tops and one of Harry Nilsson’s hit songs, coconuts have gained a much more respectable persona in the minds of U.S. consumers within the past several years. Now known for an ever-increasing number of health benefits, coconut products have exploded within the United States. The growth of the ready-to-drink (RTD) coconut water category largely has been driven by the United States, which also is the largest market for the product, according to an October 2015 report from Technavio, London, titled “Global Coconut Water Market 2015-2019.”

The growing interest in health and wellness has been the main driver for the U.S. coconut water market, according to experts. “There has been a shift in the consumer marketplace,” New York-based Nielsen’s Director of Strategic Insights Andrew Mandzy says. “People are more proactive with their health, and they are seeking healthier food and beverage options with simpler ingredients. In the highly competitive beverage category, we see many more healthy and less sugary options. There is a movement to ‘back to basics’ eating and drinking, seeking out foods and beverages with simpler ingredients. Coconut water is very firmly within this group and has benefited as a result.