Coco Coir Market Size (2024 – 2030)

The Coco Coir Market was valued at USD 373.19 Million in 2023. Over the forecast period of 2024-2030, it is projected to reach USD 565.23 Million by 2030, growing at a CAGR of 6.11%.

Coco coir, also known as coco fiber, is sourced from the outer husk of the coco, a rigid and coarse natural fiber. This flexible yarn can be manually or mechanically extracted from the outer shell of the coco. There are two prevalent types of coco fibers obtained from matured coco shells: white fibers and brown fibers. With the highest lignin concentration, coir exhibits greater strength but is less pliable compared to cotton, rendering it unsuitable for dyeing purposes. Recognized as an environmentally friendly product, coco coir finds applicability in hydroponic and horticultural settings due to its water-absorbing properties. The global coco coir market is experiencing growth fueled by the increasing demand for lightweight, eco-friendly products and the expansion of the upholstery industry.

Key Market Insights:

The primary derivative of coconuts is coconut husk, from which coir fiber is extracted. This extraction process yields a substantial amount of coir dust or coir pith, gaining notable traction in the coco coir market due to its utilization as a growth medium in horticulture. However, coir pith is not regarded as an optimal carbon source for agricultural use, attributed to its elevated carbon and nitrogen ratio and reduced biodegradability stemming from its high lignin content. Consequently, coir pith undergoes composting to mitigate the carbon and nitrogen ratio, diminish lignin and cellulose content, and enhance its manorial value. Through composting, coir pith undergoes a reduction in bulkiness while converting plant nutrients into an available form. This has led to a growing demand for coir pith in horticulture farming. Furthermore, the agricultural sector is witnessing an increased demand for coco coir, driven by its numerous benefits, such as high moisture content and a balanced carbon-to-nitrogen ratio, consequently fostering the growth of the coco coir market. Given that most vegetables thrive in neutral conditions and coir possesses natural neutrality, there is no necessity for additional additives to regulate acidity.

Coco Coir Market Drivers:

Increasing demand for eco-friendly products is a major factor in the market growth.

The predominant factor propelling the expansion of the coco coir market is the increasing awareness and demand for eco-friendly products characterized by lightweight properties. The heightened awareness surrounding the advantageous attributes of coco coir, including elevated durability, superior absorbency, and its capacity to mitigate soil erosion, constitutes another catalyst for the market's growth. The flourishing interior design industry, particularly in developing economies, alongside the augmentation of personal disposable income, will generate lucrative and rewarding prospects for the coco coir market. Additionally, the rise in industrialization and globalization will pave the way for the sustained growth of the coco coir market.

Increasing growth in the agriculture sector drives market growth.

The agriculture industry's substantial growth on a global scale is fostering a favorable outlook for the market. Coco coir finds extensive utilization in agricultural beds, contributing to improved drainage by gradually breaking down and retaining moisture, thereby creating beneficial air pockets beneath the roots in the soil. Concurrently, the heightened demand for coir pith, characterized by superior air-to-water ratio properties, is driven by the increasing need for hydroponically cultivated vegetables and fruits, bolstering market growth. Furthermore, the market is experiencing positive momentum due to the growing preference for lightweight, eco-friendly products in response to escalating pollution levels and the adverse effects of global warming on the ecosystem.

The adoption of coco coir in the upholstery industry, serving as source material for mats, mattresses, brushes, and gunny sacks, is a significant driver propelling market growth. Additionally, the emergence of the scoreboard, crafted from the fibrous husk without the addition of chemical adhesives, has gained popularity as a high-quality material for construction and furniture applications, contributing positively to market expansion. Other contributing factors include an increasing focus on horticulture-based farming, the enhanced spending capacities of consumers, widespread product integration in the interior design sector, and the implementation of government initiatives aimed at expanding coconut operations through strategic planning and funding. Collectively, these factors are anticipated to drive sustained growth in the market.

Coco Coir Market Restraints and Challenges:

Synthetic-based products restrain market growth.

A noticeable surge has been observed in the prevalence of synthetic products manufactured from high-density polyethylene, polypropylene, polyester, and polyamide fiber, presented in woven, short, or tape forms. Synthetic geotextile, distinguished by its composition of these materials, has witnessed a significant increase in adoption. Notably, synthetic geotextile stands out as a cost-effective alternative compared to other raw materials, making it particularly favored in the construction industry. The heightened popularity of these products is attributed to their commendable qualities, including mechanical strength and liquid repellency.

Moreover, the application of synthetic geotextiles has expanded across various industries, driven by a growing awareness of their functional advantages over traditional materials. These advantages encompass high tensile strength, flexibility, superior load-bearing capacity, and permeability. Consequently, consumer preferences are anticipated to shift towards synthetic products, imposing a substantial market restraint due to their affordability and widespread availability.

Coco Coir Market Opportunities:

Coir plywood, an innovative product formed by combining resin with pre-treated timber veneers, serves as a viable substitute for traditional plywood. The Indian market has warmly embraced this alternative, recognizing it as a favorable replacement for plywood. This adoption holds the potential to mitigate the substantial felling of tropical trees, offering an eco-friendly alternative in the form of coir. With the added strength derived from fiber-reinforced phenol bonding, coir ply exhibits characteristics akin to phenol-bonded plywood. It demonstrates high resistance to surface abrasion, as well as temperature-related contractions and expansions.

Comparatively, coir boards exhibit the lowest consumption rating per square foot for paints and varnishes when contrasted with wood plywood. This characteristic results in a reduced overall requirement for finishing coats. Furthermore, the demand for plywood coir is projected to witness an upswing in the near future, driven by the growing trend towards eco-friendly construction practices that prioritize renewable building materials. Consequently, these properties are poised to contribute to the market's growth.

COCO COIR MARKET REPORT COVERAGE:

Coco Coir Market Segmentation: By Product

• Coco Coir Grow Bags

• Bales

• Coir Material

• Open Tops

• Blends & Loose Substrate

• Others

The segment of coco coir grow bags has captured the largest market share in the coco coir industry. This dominance can be attributed to the availability of grow bags in standardized sizes, featuring various volumes of coir and existing in both flat bag and small open-top container configurations. These bags present the equivalent advantages of coir cultivation while offering additional benefits such as portability and heightened efficiency.

Coco Coir Market Segmentation: By Application

• Rope & Cordage

• Coco Nets & Twines

• Stitched Mats

• Coconut Meals

• Husk

• Others

The segment focusing on coconut meals has asserted its dominance in the coco coir market and is projected to sustain this leading position throughout the forecast period. This prominence is primarily attributed to the extensive range of applications within the agriculture sector, facilitated by its homogeneous and fine structure. Coconut meal serves as a significant substrate for various crops, and the anticipated rise in demand from the agriculture sector is expected to be a key contributor to the continued growth of the coco coir market.

Coco Coir Market Segmentation: By Consumer

• Green Houses

• Sellers

The greenhouses segment has emerged as the leading revenue contributor, marking a significant impact on the agricultural coco coir markets in unprecedented ways. This development is poised to necessitate global farmers to augment crop production, either by expanding agricultural land for cultivation or by optimizing productivity on existing agricultural plots. Consequently, these factors are anticipated to play a pivotal role in the expansion of greenhouses, subsequently fostering an increased demand for coco coir throughout the forecast period.

Coco Coir Market Segmentation- by region

• North America

• Europe

• Asia Pacific

• South America

• Middle East & Africa

Europe currently holds the dominant position in the coco coir market and is expected to maintain its supremacy throughout the forecast period. This sustained dominance is attributed to the increasing demand for hydroponics and horticulture applications in the region. Meanwhile, the Asia-Pacific region is experiencing substantial gains and is poised to exhibit the highest Compound Annual Growth Rate (CAGR) during the forecast period. This notable growth in the Asia-Pacific region can be attributed to the burgeoning production of coir fiber and coir fiber products.

COVID-19 Pandemic: Impact Analysis

The global COVID-19 outbreak has led to widespread lockdowns across nearly every country, posing significant challenges for various industries, including the coco coir market. The pandemic has induced substantial disruptions in the supply chain, creating confusion and impacting the processing and manufacturing of agricultural products, including coco shells, a by-product of coconuts. This disruption has adverse effects on the production of coconut shell-derived products. Moreover, the lockdown measures have adversely affected the end-use industries relying on coconut bark, thereby influencing the trends in the coco coir market negatively.

It is important to note that while these challenges are prevalent, they are expected to be temporary, contingent upon the control of the epidemic. Once the situation stabilizes, the coco coir market is projected to resume growth at a significant rate. Consequently, the impact of the COVID-19 outbreak on the coco coir market is anticipated to be moderate in the long run.

Latest Trends/ Developments:

• In September 2022, the emergence of plastic grow bags faces a notable challenge from e-coir bags, a development spearheaded by the National Coir Research and Management Institute (NCRMI) situated in Thiruvananthapuram. These innovative bags are anticipated to witness substantial demand in the market.

• Moving into October 2022, Profile Products LLC, a prominent manufacturer specializing in agriscience materials based in the United States, made a strategic move by acquiring Nivetha Exporters. Nivetha Exporters is an international producer known for delivering high-quality coco coir products and is located in Tamil Nadu. This acquisition is poised to have a significant impact on the dynamics of the coco coir industry.

Key Players:

These are the top 10 players in the Coco Coir Market: -

1. Universal Coco Indonesia

2. Pilipinas Ecofiber Corp,

3. FibreDust LLC,

4. Argo Real Estate LLC.

5. Pelemix Ltd.,

6. RA Coir Exports,

7. Kumaran Fibers,

8. Selvam Coco Tech,

9. Allwin Coir

10. Thiraviyam Coco Products