Table of Contents
Overview
New York, NY – August 11, 2025 – The Global Coconut Milk Powder Market is projected to grow from USD 589.3 million in 2024 to approximately USD 1,320.2 million by 2034, with a CAGR of 8.4% during the 2025–2034 forecast period. In 2024, North America led the market, holding a 36.3% share and generating USD 213.9 million in revenue.
Coconut milk powder is produced by drying and concentrating mature coconut milk into a powder form, offering extended shelf life, easier logistics, and versatile applications in beverages, culinary dishes, and food manufacturing. The process uses copra or fresh coconut milk, processed through spray drying or roller drying to create powder with consistent fat and solids content.
The market sees strong demand for both conventional and organic coconut milk powder. Conventional variants, produced through standard farming and processing, dominate due to affordability and availability. However, the organic segment is growing rapidly, fueled by consumer preference for natural, additive-free products. The coconut milk powder segment holds a commanding 93% market share and is expected to drive growth.
In India, the coconut milk powder industry is expanding due to several key factors. Advanced spray drying technologies have improved production efficiency and quality. The Coconut Development Board (CDB), under India’s Ministry of Agriculture, provides technology for producing coconut cream and spray-dried coconut milk powder, supporting both small and large-scale operations.
The PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme further boosts the sector by funding integrated processing units capable of handling up to 400,000 coconuts daily, encouraging value addition and entrepreneurship. A notable example is the Coconut Milk Processing Unit model, with a 60 MT annual capacity. This project outlines the production process from deshelling and grinding coconuts to extracting, pasteurizing, and spray-drying coconut milk into powder.
Key Takeaways
- The Coconut Milk Powder Market is projected to grow from USD 589.3 million in 2024 to approximately USD 1,320.2 million by 2034, registering a CAGR of 8.4%.
- Conventional coconut milk powder held the leading position, accounting for over 77.5% of the global market share.
- The Unsweetened variant dominated the market, capturing more than 67.3% of the total share.
- Beverages emerged as the top application, holding over 39.4% of the global market share.
- Supermarkets and Hypermarkets led the sales channel, contributing more than 39.2% of the market share.
- North America was the dominant regional market, securing a 36.3% share, equivalent to approximately USD 213.9 million in 2024.
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Report Scope
| Market Value (2024) | USD 589.3 Million |
| Forecast Revenue (2034) | USD 1320.2 Million |
| CAGR (2025-2034) | 8.4% |
| Segments Covered | By Product (Conventional, Organic), By Type (Sweetened, Unsweetened), By Application (Beverages, Savories, Bakery and Confectionery, Dairy and Frozen Products, Others), By Distribution Channel (Supermarkets and Hypermarkets, Convenience Stores, Online Retailers, Others) |
| Competitive Landscape | Associated British Foods PLC, Ayam Sarl, BareOrganics, Bramble Berry, Inc., Cocomi Bio Organic, GraceKennedy Limited, McCormick & Company, Inc., Nestle S.A., Renuka Foods PLC, S & P Industries Sdn Bhd, The Coconut Company (UK) Ltd. |
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Key Market Segments
By Product Analysis
Conventional Coconut Milk Powder led the global market in 2024, holding a 77.5% share due to its affordability, long shelf life, and widespread availability. Produced using standard farming and processing methods, it remains cost-effective for manufacturers and consumers.
It is widely used in packaged foods, bakery items, ready-to-eat meals, and beverages, particularly in cost-sensitive regions like Southeast Asia, Africa, and Latin America. In 2024, steady demand from the foodservice sector and small-scale processors, who value its consistent quality and bulk availability, solidified its dominance. Organic variants, while growing, remain niche due to higher costs.
By Type Analysis
Unsweetened Coconut Milk Powder dominated in 2024 with a 67.3% market share, driven by rising demand for low-sugar, clean-label products. Popular in health-focused diets like ketogenic, vegan, and diabetic-friendly recipes, its neutral flavor suits savory dishes, protein shakes, soups, and curries.
Growing awareness of sugar-related health risks in North America and Europe, coupled with its versatility for food manufacturers and the foodservice industry, fueled its strong performance. Its flexibility as a base for customized flavors further reinforced its market leadership.
By Application Analysis
Beverages accounted for a 39.4% share of the coconut milk powder market in 2024, propelled by the surge in plant-based and dairy-alternative drinks. Coconut milk powder’s creamy texture and natural flavor make it ideal for ready-to-drink products, smoothies, health beverages, and powdered drink mixes.
In 2024, the rise in vegan and lactose-free diets boosted their use in functional and wellness beverages across Asia, Europe, and North America. Its solubility and compatibility with other ingredients made it a top choice for commercial beverage production.
By Distribution Channel Analysis
Supermarkets and Hypermarkets led with a 39.2% share in 2024, driven by their extensive reach, diverse product offerings, and convenient shopping experience. These stores enabled in-person product comparisons, offered bulk discounts, and ensured immediate availability, appealing to consumers adopting plant-based diets.
Expanded health food aisles in urban areas, promotional campaigns, in-store tastings, and strong brand visibility further strengthened their position as the primary distribution channel for coconut milk powder in 2024.
Regional Analysis
North America held a leading 36.3% share of the global coconut milk powder market in 2024, generating USD 213.9 million in revenue. The region’s dominance stems from early adoption of plant-based lifestyles, growing lactose intolerance awareness, and demand for dairy alternatives in the U.S. and Canada.
Coconut milk powder is widely used in beverages, baking mixes, health foods, and industrial food processing. Key drivers include consumer preference for vegan and lactose-free diets, health consciousness, and clean-label products. Strong retail presence in supermarkets, specialty health stores, and e-commerce platforms, particularly among younger consumers, further boosted market penetration.
Top Use Cases
- Dairy-Free Cooking and Baking: Coconut milk powder is a versatile ingredient for vegan and lactose-free recipes. It adds a creamy texture to curries, soups, and desserts like cakes and puddings. Easy to store and mix with water, it’s perfect for households seeking plant-based alternatives without sacrificing flavor or convenience.
- Instant Beverage Mixes: Coconut milk powder is used in instant coffee, tea, and smoothie mixes. It provides a rich, tropical flavor and creamy consistency, appealing to health-conscious consumers. Its long shelf life and ease of use make it ideal for on-the-go beverages, especially in cafes and retail settings.
- Travel-Friendly Food Solutions: With its lightweight and non-perishable nature, coconut milk powder is great for camping or travel. It can be reconstituted with water for cooking or drinking, offering a convenient dairy-free option. Its portability makes it popular among outdoor enthusiasts and those in remote areas.
- Plant-Based Dairy Alternatives: Coconut milk powder serves as a substitute for dairy milk in vegan ice creams, yogurts, and cheeses. Its natural sweetness and creamy texture enhance product appeal. Health-conscious consumers prefer it for its nutritional benefits, like healthy fats, driving demand in the plant-based food market.
- Culinary Innovation in Restaurants: Restaurants use coconut milk powder to create unique dishes, such as vegan sauces, gravies, and desserts. Its versatility suits various cuisines, like Thai, Indian, and Caribbean. Chefs value its long shelf life and ability to adjust concentration, making it a staple in professional kitchens.
Recent Developments
1. Associated British Foods PLC
ABF has expanded its coconut-based product offerings, focusing on sustainable sourcing for coconut milk powder. Their subsidiary, Twinings, is incorporating coconut milk powder into wellness beverages. ABF Ingredients is also enhancing production efficiency to meet rising demand in Europe and North America.
2. Ayam Sarl
AYAM has launched a new organic coconut milk powder line, emphasizing non-GMO and fair-trade certifications. The product is targeted at health-conscious consumers and food manufacturers seeking clean-label ingredients. AYAM is also investing in eco-friendly packaging.
3. BareOrganics
BareOrganics introduced a premium coconut milk powder with added MCT oil for enhanced energy benefits. The product is keto-friendly and marketed as a dairy-free creamer alternative. They have also expanded distribution through Amazon and Whole Foods.
4. Bramble Berry, Inc.
Bramble Berry now offers fragrance-free coconut milk powder for cosmetic and soap-making applications. The product is popular among DIY skincare formulators for its moisturizing properties. They have also released formulation guides for homemade beauty products.
5. Cocomi Bio Organic
Cocomi Bio Organic has launched a single-origin coconut milk powder sourced from Sri Lankan coconuts. The product is certified organic and free from additives. They are also partnering with vegan food brands for plant-based recipe integrations.
Conclusion
Coconut Milk Powder is a versatile, high-demand ingredient driven by the rise in plant-based diets, health-conscious consumers, and clean-label trends. Its applications span beverages, cooking, baking, supplements, and cosmetics, fueled by its long shelf life and ease of use. With growing markets in North America and Asia, the industry is set to expand steadily.
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