1. Home
  2. Statistics
  3. Market Review

Market Review of Dessicated Coconut
February 2024

Desiccated coconut, a key ingredient in various food and beverage products worldwide, has seen notable fluctuations in prices and export volumes in recent years. Throughout 2023, the desiccated coconut market witnessed a downward trend in prices across key producing countries such as the Philippines, Indonesia, and Sri Lanka. In the Philippines, the average price per metric ton dropped to US$1,768, marking a significant 24% decrease compared to the previous year. Similarly, Indonesia and Sri Lanka experienced declines in average monthly prices, with Indonesia recording US$1,470 per metric ton and Sri Lanka US$1,641 per metric ton, reflecting decreases of 12% and 6.7%, respectively.

Several factors contribute to the declining prices of desiccated coconut. Weak demand from major importing regions, including European countries and the USA, is a significant driver. High inflation rates in these regions have diminished consumer purchasing power, leading to reduced demand for coconut products. Additionally, anticipated economic slowdowns could further dampen demand and consequently impact prices in the desiccated coconut market.

The global demand for desiccated coconut has been on a downward trajectory, continuing the trend observed in 2021 and 2022. Notably, there has been a substantial decrease in global imports, primarily driven by diminishing demand in European countries. Import volumes in the EU27 are expected to drop by 23%, with US imports forecasted to decrease by over 28%. Over the past decade, both the EU27 and the US have shown slight decreases in demand for desiccated coconut, with compound annual growth rates (CAGR) of -1.4% and -3.3%, respectively.

Table 1. Import Volume (MT) of Desiccated Coconut, 2014-2023

Year World EU27 US
2014 420,373 103,376 52,259
2015 440,774 94,421 53,69
2016 423,896 104,508 48,107
2017 439,129 111,551 46,590
2018 458,789 108,320 48,067
2019 451,727 103,385 45,531
2020 483,005 100,657 41,056
2021 517,302 115,103 53,568
2022 466,941 118,291 54,372
2023F 393,132 91,160 38,741

Source: ITC and US Census Bureau,  F: forecasted figures

As demand from major importing countries has been weakening, imports of desiccated coconut from the Philippines, a significant exporter of desiccated coconut, has displayed a downward trend in 2023. During January-September 2023, the country exported 116,655 metric tons to the global market representing a 4.2% decline compared to the same period the previous year. It is worth noting that the Philippines had been showing a consistent growth trajectory in recent years. Export volumes peaked at 160,117 metric tons in 2021 before maintaining a steady figure of 156,930 tons in 2022.

Top export destinations for Philippine desiccated coconut during this period included the United States of America and the Netherlands, importing 24,346 metric tons and 23,062 metric tons, respectively. Other significant destinations comprised China, Australia, Canada, Germany, and Russia, each importing over 4,000 metric tons. This data underscores the robust demand for desiccated coconut across North America, Europe, and Asia.

Indonesia, another major player in the desiccated coconut market, has experienced fluctuations in export volumes in recent years. While exports declined to 98,742 metric tons in 2019, they rebounded to 128,087 metric tons in 2020 and peaked at 139,932 metric tons in 2021. However, export volumes dipped to 110,455 metric tons in 2022 before recovering to 113,670 metric tons in 2023 amid a weak supply of desiccated coconut from the Philippines.

Indonesia's primary export markets for desiccated coconut include Singapore, Russia, Germany, UAE, China, and Brazil, which also represent significant importers. Over the past two decades, Indonesian export desiccated coconut has shown an increasing trend, with a compound annual growth rate (CAGR) of 5.9%.

The desiccated coconut market is subject to various factors influencing both prices and export volumes. While weakening demand from major importing regions has contributed to declining prices, exporters like the Philippines and Indonesia continue to navigate these challenges.