European Coconut Milk Market Size (2024-2030)

The European Coconut Milk Market was valued at USD 450 million and is projected to reach a market size of USD 849.40 million by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 9.5%. 

The milky-white, opaque liquid known as coconut milk is made from the grated pulp of mature coconuts. This was mainly used for specific cuisines in European countries. Hence, it had a good but limited presence in the past. However, with product diversification, this market has started to expand. Health benefits and a growing population are the other reasons behind this. In the future, with an increasing focus on sustainability, culinary experimentation, and global operations, this market is set to see an upsurge.

Key Market Insights:

7.66% (65710) of eateries have coconut milk available on their menus.

The European Union's (EU-27) market for milk replacements was estimated to be worth 2.2 billion US dollars in 2021. Compared to the prior year, this is an increase of 440 million.

Every year, producers release more than fifty new coconut milk products to meet the demands of the European market.

The Milk Substitutes area of the German food market was expected to see steady growth in average volume per capita between 2023 and 2028, totaling 3.4 kilograms (+77.8%).

Over the previous year, there has been a 35.76% decrease in social talks regarding coconut milk. To address this, companies have been concentrating on product innovations, alternatives, and other varieties to create a broader consumer base. 

Europe Coconut Milk Market Drivers:

The nutritional benefits of coconut milk have been accelerating market growth.

There have been many studies and research conducted that suggest that consumption of coconut milk helps with the reduction of body fat, increases insulin sensitivity, gives a sense of fullness, and boosts an individual's energy level. Secondly, it promotes heart health. There are fewer chances of stroke and other heart diseases with regular intake. Thirdly, this beverage is rich in antioxidants. These compounds play a vital role in protecting our body from various cancers and enhancing the immune system. Moreover, this milk is associated with anti-inflammatory and antimicrobial properties. This helps to prevent infections. Furthermore, it provides healthy fats, is easy to digest, has a low carb content, and is a good source of potassium.

Rising demand for plant-based alternatives has been fueling the expansion.

Veganism is the practice of incorporating plant-based diets. Over the years, social media has played a crucial role in spreading awareness about the cruelties faced by the animal industry in extracting their products. This has led to an increase in demand for vegan-based foods. Europe is home to an estimated 2.6 million vegans, according to GreenQueen.com. Additionally, this beverage is a great option for people who are lactose intolerant. Coconut milk is an eco-friendly option, producing a lesser carbon footprint than other traditional milk products. One cup of canned unsweetened coconut milk has 420 calories, while one cup of unsweetened coconut milk beverage has 40 calories. Furthermore, this milk has a good taste and flavor, making it a popular choice.

Europe Coconut Milk Market Restraints and Challenges:

Heavy competition, environmental issues, allergy concerns, and cost fluctuations are the major barriers that the market is currently experiencing.

This industry is subjected to intense rivalry from popular brands. Besides, other dairy alternatives like almond, soy, and oat milk are well-liked flavors. This can result in huge losses for the market. Secondly, coconut farming can lead to deforestation. Increasing emphasis on ethical sourcing and other sustainable farming calls for a shift in existing practices. Thirdly, it is extremely necessary to adhere to clean labeling and transparency of the ingredients. Negligence by manufacturers can lead to severe health defects. Furthermore, price volatility can demotivate consumers from buying this beverage, forcing them to choose other convenient alternative options.

Europe Coconut Milk Market Opportunities:

The ongoing health and wellness trends have been providing the market with an ample number of possibilities. The nutritional profile of coconut milk fits in well with various goals. Due to the increasing prevalence of chronic illness, people prefer options that have less cholesterol, carbohydrates, and fats. Secondly, product creativity has been aiding the growth. Experimentations are being carried out concerning formulations and functional ingredients. With changing lifestyles and consumer preferences, this beverage is being used in various desserts, yogurts, and skin care products, thereby generating more revenue. Besides tailoring to specific needs and objectives, it has been gathering more consumers. Furthermore, sustainable practices are being prioritized to attract eco-conscious customers.

EUROPE COCONUT MILK MARKET MARKET REPORT COVERAGE:

Europe Coconut Milk Market Segmentation:

Europe Coconut Milk Market Segmentation: By Nature

• Organic
• Conventional

Based on nature, the conventional segment is the largest market. This is because of historical significance, easy availability, accessibility, convenience, trust, bulk manufacturing, price, and demand. However, the organic segment is the fastest-growing owing to a rise in sustainable options, veganism, affordable choices, rising needs, taste, quality, and long-term health benefits.

Europe Coconut Milk Market Segmentation: By Form

• Liquid
• Powder

Based on form, the liquid segment is the largest market. This is mainly because of its easy availability. They can be easily mixed with beverages like coffee and tea. Besides, new drinks, which include shakes and smoothies, are gaining attention. The thick, creamy texture is associated with a lot of taste, contributing to its success. Furthermore, rising awareness about veganism is creating an upsurge in plant-based and other dairy alternatives. The powdered form is considered to be the fastest-growing category. This is mainly due to the shelf life. Apart from this, the powder form is used as a taste enhancer for various desserts, fruit bowls, beverages, and other sweets.

Europe Coconut Milk Market Segmentation: By Packaging Type      

• Tetra packs
• Bottles
• Cans

The tetra packs segment is the largest packaging type in this market. Tetra packs are widely used for the packaging of milk products owing to their convenience, shelf life, easiness, lightweight, microbial contamination prevention, and strength. Cans are the fastest-growing category because of their volume capacity, durability, corrosion resistance, non-reactive nature, longevity, and strength.

Europe Coconut Milk Market Segmentation: By End-Users                 

• Household
• Food and Beverage Industry
• Catering Services
• Beauty and Wellness Industry
• Others

Based on end-users, the food and beverage industry is the largest segment. This is because of the growing population, increasing number of restaurants, hotels, and other dining places, demand for culinary exploration, taste, liking for desserts, and veganism. However, the catering services are considered to be the fastest-growing segment. Factors like urbanization, rising middle class, and increasing disposable income have changed the standard of living. Hosting parties and other events have gained attention. Coconut milk is used as a delicacy in various drinks and sweets.

Europe Coconut Milk Market Segmentation: By Distribution Channels

• Supermarkets/Hypermarkets
• Online Retail
• Convenience Stores
• Others

With a market share of almost 60% in 2023, the supermarkets/hypermarkets sector is the largest one in terms of distribution channels. This is due to factors like availability, presence, uniqueness, genuineness, accessibility, face-to-face interaction, and visual inspection. The sector with the fastest growth is online retail. The success of this category is partly due to the growing digital revolution. An increasing number of consumers are choosing online delivery services as a result of greater consumer knowledge and a desire to try new things. Orders can be placed by clients whenever it's convenient for them at home. People now find it simpler to purchase food, especially those who live in rural regions. Online retailers are starting to guarantee the freshness of their products and provide excellent customer service to further improve their success.

Europe Coconut Milk Market Segmentation: Regional Analysis

• United Kingdom
• Germany
• France
• Italy
• Spain
• Rest of Europe

The United Kingdom is the largest growing market by region, with around a 32% market share in 2023. Population density, the presence of large organizations, mass production, demand, uniqueness, innovations, cultural importance, attractiveness, and flavor advances are a few of the factors that contribute to this. Germany, with an approximate share of 26%, is the fastest-growing region due to several factors, including the rise in fast-food franchises and restaurants, population expansion, the founding of new businesses, worldwide operations, growing attractiveness, investments, the growing popularity of veganism, and the need for innovation. According to a report by The Vegan Society, as per Google Trends, the country where veganism queries originated most frequently in 2023 was Germany.

COVID-19 Impact Analysis on the Europe Coconut Milk Market:

The outbreak of the virus had a positive impact on the market. The pandemic highlighted the importance of having a good health. People were inclined towards the consumption of healthy and home-cooked food. Coconut milk gained prominence owing to its medical advantages. Besides, there was an increase in the number of vegans. There was a lot of awareness regarding the environment and the incorporation of sustainable practices. One in four British people indicated they had cut back on their use of animal products since the beginning of the COVID-19 epidemic, according to a May 2021 study conducted by The Vegan Society. Twenty percent of respondents stated they had cut back on their meat consumption, while twelve percent claimed they had cut back on their dairy and egg intake. Post-pandemic, the market has continued to grow owing to fitness and wellness goals.

Latest Trends/ Developments:

The companies in this market are motivated to achieve a higher market share by implementing different strategies, such as acquisitions, partnerships, and investments. Companies are also spending heavily to improve existing creations while maintaining competitive pricing. This has further resulted in increased enlargement.

Usage in the beauty and wellness industry is facilitating profit generation. The skin may be cleansed with coconut milk without losing its natural oils. It also aids in collagen formation and has other anti-aging benefits. The benefits of coconut milk soap for the skin also include treating acne and skin that is prone to infections.

Key Players:

1. Alpro
2. Rude Health
3. Koko Dairy Free
4. Rebel Kitchen
5. Pride Coconut
6. Biona Organic
7. Vita Coco
8. Aroy-D
9. Ecomil
10. Thai Taste

In August 2023, Axelum Resources Corp. (AXLM) expanded its branded sector for the consumer market by introducing its coconut milk powder in flexible retail pouches. Natural stabilizers and freshly squeezed coconut milk are used to make the powder.

In April 2023, under the Berry Sanders brand, Atlante will introduce Organic Coconut Milk.  Experts in Far Eastern goods, Atlante brought in more than 200 containers in 2022. One thing that makes Berry Sanders Coconut Milk different from its rivals on the shelf is that it is prepared using organic coconuts that are imported from Thailand.

In August 2022, for kids older than six months, organic coconut milk yogurt tubes were introduced by UK-based dairy-free manufacturer Cocos Organic. Dairy, lactose, gluten, nuts, and refined sugar are all excluded from the yogurt tubes. They come in banana and strawberry flavors.