…BOOMING COCONUT OIL INDUSTRY

Coconuts have been picking up a lot of momentum in the West, most recognizably through coconut water, which has been flaunted by celebrities and influencers boasting its health benefits, the Asian Journal report on the event continued.  As the popularity of coconut water increases, many have ventured into coconut’s other forms.  Coconut oil, specifically, has become increasingly popular and was the focus of the event.

“Coconut oil is the most versatile oil,” said Marco Reyes, mentioning its use in food, health care, and personal care.  Key drivers for the coconut oil industry were its health benefits and its ability to cater to the “green and wellness” movements.  Health benefits ranged from improving memory and brain function, improving digestion and reducing stomach problems, and boosting metabolism.   The internet and demographic shifts were also said to be key drivers.  Google searches for coconut oil specifically have spiked since 2010 as have the number of coconut health-related searches.  According to Reyes, the trends coincided exactly with export shipments.

As the world’s largest producer of coconut oil, the Philippines has seen a positive outlook on the trend with its biggest markets being the United States and Europe who have been coconut oil consumers in both food and non-food markets.  The UCAP and the VCOP predict Philippine coconut production to be at 2.244 million metric tons (MMT) in copra terms, or 1.29 MMT as coconut oil in 2017 - that would be a 9.3 percent increase from their 2016 estimate of 2.052 MMT.