During the first five months of 2024, the desiccated coconut market experienced a significant surge in prices across major producing countries, including the Philippines, Indonesia, and Sri Lanka. Desiccated coconut, a vital ingredient in a wide range of food and beverage products, is seeing increasing demand globally, leading to upward price trends and shifting export patterns.

In the Philippines, the price per metric ton of desiccated coconut reached an average of $1,911 in May 2024, representing a year-on-year increase of 4.5%. This upward trajectory is a clear indicator of the growing demand and anticipated supply challenges within the market. Indonesia saw an even more dramatic increase, with prices rising to $1,999 per metric ton, a substantial 35.6% year-on-year increase. Sri Lanka, another key producer, also experienced a notable price hike, with its average price per metric ton reaching $2,050—a 30.5% increase compared to the previous year. These price surges highlight the tightening supply in the face of robust global demand.

Export data from these countries further underscores the growing pressure on supply chains. The Philippines, a leading exporter of desiccated coconut, saw a significant uptick in its export volumes during the first quarter of 2024. Between January and March, the country exported 41,854 metric tons, marking a 20.8% increase compared to the same period in 2023. This growth is particularly noteworthy as it follows a slight decline in exports the previous year when total exports amounted to 156,274 metric tons, reflecting a 0.4% decrease. The resurgence in 2024 highlights the strong recovery in demand for desiccated coconut, particularly in key markets.

The United States and the Netherlands emerged as the top destinations for Philippine desiccated coconut during this period. The United States imported 43,016 metric tons, while the Netherlands followed closely with 32,660 metric tons. Other significant markets included Canada, Australia, China, Turkey, and Russia, each importing over 4,000 metric tons. This widespread demand across North America, Europe, and Asia underscores the global reliance on desiccated coconut and the increasing competition among importers to secure supplies.

Indonesia, another major player in the global desiccated coconut market, also reported positive trends in 2024. From January to April, Indonesia exported 35,189 tons of desiccated coconut, reflecting a 3.8% increase compared to the same period in 2023. This growth builds on the momentum seen in 2023 when Indonesia’s exports grew by 3.2% annually, following a significant drop in 2022. The steady recovery in Indonesia’s export volumes points to the resilience of the country’s coconut industry despite past challenges.

Indonesia’s primary export markets include Singapore, Russia, Thailand, the UAE, Turkey, Brazil, the United Kingdom, and Germany. These countries have continued to show strong demand for Indonesian desiccated coconut, contributing to the positive export figures. In the first quarter of 2024, import demand surged in several countries, including Singapore, China, Germany, Spain, Italy, and Australia. However, some key markets, such as the United States, the Netherlands, the UK, and Brazil, exhibited a declining trend in imports during the same period. This divergence in demand patterns highlights the dynamic nature of the global desiccated coconut market, where shifts in stock levels and consumption preferences can lead to fluctuating demand across different regions.

The rise in both prices and export volumes is a clear reflection of the intensifying global demand for desiccated coconut, coupled with concerns over supply constraints. As the market continues to evolve, producers and exporters are likely to face increasing pressure to meet the growing needs of international markets. This scenario could lead to further price increases and heightened competition among importing countries, as they strive to secure a steady supply of this essential commodity.

Looking ahead, the desiccated coconut market is expected to remain dynamic and challenging. With global demand showing no signs of slowing down, producers in the Philippines, Indonesia, Sri Lanka, and other key regions will need to adapt to the evolving landscape. Supply chain disruptions, climate-related challenges, and shifting market preferences will all play a role in shaping the future of this vital industry. As such, stakeholders across the supply chain will need to remain vigilant and proactive in navigating the complexities of the global desiccated coconut market.

Source: ITC and US Census Bureau  F: forecasted figures