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Market Review of Coconut Fiber
March 2024
In 2023, the coir fiber market weathered a prolonged period of price depression, following a downturn observed in the previous year. Notably, Indonesia saw the average coir fiber price plummet to US$96 per metric ton, marking a significant 46% decrease compared to the average price in 2022. Similarly, Sri Lanka experienced sluggish market conditions, with an average price of USD49 per metric ton during January to December 2023, reflecting a notable 34% decline compared to the previous year. However, there are promising signs of improvement in demand, suggesting a potential price upturn in 2024. Recent data indicates a positive shift in price trends, with coir fiber prices rising to US$110/MT in Indonesia and US$64/MT in Sri Lanka as of February 2024.
Despite the challenges faced by the coir market since 2022, major exporters such as India, Indonesia, and Sri Lanka have continued to play pivotal roles in the global trade of coir-based products. According to the latest report from the Ministry of Commerce and Industry of India, total coir and coir product exports amounted to 1.058 million tons in 2023, marking a marginal 3% increase in volume compared to the same period in 2022, generating an export revenue of US$292.22 million. Coir pith and fiber remained the primary products, accounting for over 98% of the total volume and contributing 86% of the export revenue. Key export destinations for Indian coir products included China, European countries, and the USA, collectively covering more than 85% of global demand.
In Indonesia, the export volume of coir-based products from January to December 2023 totalled 26,184 metric tons, marking an 8.7% decline compared to the corresponding period in the previous year. This decrease in volume was accompanied by a 22.5% reduction in export value, reflecting a downward trend in product prices. Over the past five years, Indonesian coir product exports have demonstrated a consistent decline, with a Compound Annual Growth Rate (CAGR) of -5% in quantity and -21% in value. Key export destinations for Indonesian coir products included China, South Korea, and Australia, collectively representing over 95% of the exported volume. It is noteworthy that the export reach of Indonesian coir products has expanded significantly. In 2019, these products were shipped to 13 countries globally, while in 2023, they reached 23 countries. Notably, coir fiber and coir pith comprised the primary products exported from Indonesia to the global market.
Similarly, Sri Lanka experienced a decline in export revenue for coir-based products in 2023, with a decrease of 15% from Rs76,836 million in January to December 2022 to Rs65,355 million in 2023. Over the past six years, Sri Lanka has consistently observed a positive trend in coir product exports, with a Compound Annual Growth Rate (CAGR) reaching 16%. Moulded coir products utilized in horticulture emerged as the largest contributor to the country's export revenue from coir-based products, amounting to Rs48,482 million, representing over 74% of the total export value in 2023. However, the export value of moulded coir products witnessed a 13% decrease compared to the previous year. Other significant contributors to export earnings included mattress fiber, Coir Brooms & Brushes, and coir twine. Primary export destinations for moulded coir products for horticulture from Sri Lanka included Mexico, China, Japan, Morocco, the USA, South Korea, and Turkey.