Extra Virgin Coconut Oil-Based Baby Products Market Size (2024 – 2030)

The global extra virgin coconut oil-based baby products market was valued at USD 85 million and is projected to reach a market size of USD 132.09 million by the end of 2030. Over the forecast period of 2024–2030, the market is projected to grow at a CAGR of 6.5%.

Using the cold-press method, extra virgin coconut oil is taken out of the ripe, fresh coconut kernels. It's a technique for treating materials that need little heat exposure. Extra virgin coconut oil that has been cold-pressed contains a significant amount of antioxidant-rich vitamins and minerals. Coconut oil has been used for many decades on babies to ensure their overall development. However, commercialization was limited. Additionally, only a certain section of the population was able to afford this product. Presently, the market has seen a significant expansion owing to the presence of players and innovative formulations. In the future, with a focus on e-commerce and R&D activities, immense growth is anticipated.

Key Market Insights:

The market is expanding because of its health advantages, which include moisturizing, anti-inflammatory, and antibacterial qualities. Besides, an increasing preference from consumers for natural ingredients is creating an upsurge. Market expansion is hampered by fierce rivalry, allergies, and a lack of knowledge, which calls for clean labeling and instructional programs. The market development in emerging nations, product line extension, educational activities, and the continuous demand for organic goods present opportunities. Due to customer desire for mild and hypoallergenic options, ease, and mobility, baby wipes have emerged as the fastest-growing sector. Due to trends in digitization, accessibility, and convenience, online retail is growing at the quickest rate possible, giving customers access to a greater selection of goods.

Extra Virgin Coconut Oil-Based Baby Products Market Drivers:

The health benefits of coconut oil have contributed to its success.

The fatty acids in coconut oil keep skin nourished and moisturized while preventing dryness. Additionally, it has antibacterial and anti-inflammatory qualities that help relieve irritated skin and cure common skin disorders, including diaper rash and eczema. This property protects the baby from many germs. Secondly, acne may also be prevented and treated using coconut oil. Besides preventing protein loss and promoting healthy hair development, coconut oil softens and conditions hair. It can also aid in the treatment of cradle cap, a common ailment of the infant's scalp. Thirdly, the good fats in coconut oil give developing infants readily available energy, and some of them are simpler to absorb and digest than fats found in animal sources. Moreover, the fiber in coconut flesh contributes to digestive health. Important minerals like copper, iron, manganese, zinc, selenium, and vitamin B6 are included in coconut flesh. All these advantages make this a suitable choice to be used in baby products for overall development.

Increasing consumer awareness has been enabling progress.

The pandemic played a vital role in spreading awareness about the importance of health. Babies and toddlers are usually more prone to diseases due to a sensitive immune system. As such, parents are constantly on the lookout for safe and natural ingredients that protect the baby. Organic alternatives have gained prominence as many studies have proven their efficiency. Additionally, it has fewer side effects. Extra virgin coconut oil fits in well with this trend as a safer choice. This is an extremely gentle option due to its moisturizing, nourishing, and anti-allergenic properties. EVCO-based infant products that are non-toxic provide an appealing alternative to harsh chemicals like parabens, phthalates, and synthetic perfumes, which is driving market expansion.

Extra Virgin Coconut Oil-Based Baby Products Market Restraints and Challenges:

Intense competition, the possibility of allergens & sensitivities, and a lack of education are the main issues that the market is currently facing.

There are a lot of non-toxic products that are currently available on the market. Products like almonds, calendula, shea baby butter, olive oil, and rosehip oil are all in demand. They can be more affordable when compared to extra-virgin coconut oil. Parents might go for these available options owing to better health benefits, fragrance, and superior performance. As such, businesses need to stand out in the market. Secondly, even though this oil is very advantageous, there might be a small section of infants who are allergic to the ingredients present in the products. There are cases of skin rashes and infections in certain babies. Manufacturers must practice clean labeling and transparency to avoid any serious repercussions. Thirdly, even though a lot of individuals are aware of the benefits of this oil, a certain category might be unaware or have misconceptions. It is important to spread proper education about these products to gather a broader consumer base. Marketing strategies highlighting production and health benefits can be used to tackle this problem.

Extra Virgin Coconut Oil-Based Baby Products Market Opportunities:

The ongoing demand for organic products provides the market with an ample number of possibilities. Companies need to create attractive visuals and advertisements for marketing these products. They have no chemicals. Additionally, local sourcing can be advantageous as it contributes to sustainability. Secondly, the expansion of the product line helps in greater revenue generation. Baby shampoos, creams, lotions, moisturizers, balms, and cleansing wipes are some of the essentials for babies up to a certain age. Businesses can add extra virgin coconut oil to these categories.  Thirdly, educational initiatives are encouraged by making parents of newborn babies aware of the importance of this oil in the early phases. To stand out, companies can highlight their certifications for safety and efficacy. Apart from this, expansion in emerging economies helps with profits. Latin America and the Middle East are a few regions where economic growth is being witnessed. By raising awareness in these areas, it is possible to expand the consumer base.

EXTRA VIRGIN COCONUT OIL-BASED BABY PRODUCTS MARKET REPORT COVERAGE:

Extra Virgin Coconut Oil-Based Baby Products Market Segmentation: By Product Type

• Baby Oil

• Baby Lotion

• Baby Cream

• Baby Shampoo

• Baby Soap

• Diaper Cream

• Baby Wipes

• Others

Baby wipes are the largest growing segment. Wiping spills, washing hands and faces, and maintaining hygienic practices are all made possible with the help of baby wipes. Baby wipe demand has significantly increased due to considerations including mobility, convenience, and ease of use. Baby wipes made from extra virgin coconut oil are becoming more and more popular among consumers looking for mild and hypoallergenic substitutes for traditional wipes, particularly those without artificial aromas or harsh chemicals. Baby oil is one of the fastest-growing product types. Parents frequently use baby oils, especially those prepared with extra virgin coconut oil, to massage and moisturize their infant's sensitive skin.  Because of its versatility, baby oil may be used for several things, including hydrating dry skin, easing mild massage procedures, and relaxing it. Because extra virgin coconut oil is thought to be pure and healthy, baby oils made from it have become more and more popular as consumers' preferences for natural and organic baby care products have grown.

Extra Virgin Coconut Oil-Based Baby Products Market Segmentation: By Distribution Channels

• Supermarkets & Hypermarkets

• Specialty Stores

• Online Retail

• Others

Supermarkets and hypermarkets are the distribution channels with the largest growth. Consumers are welcome to talk with the company owners, ask questions, and examine the objects to assess their visual quality. By negotiating over the goods, they may also alter the price. The preference of those who are uncomfortable with or lack knowledge of the Internet further drives up demand. The fact that these businesses are located in most of the colonies adds to their accessibility. The distribution channel growing at the fastest rate is online retail. The main cause of this is availability. Because it is so convenient, customers select this choice. Consumers may place orders from the comfort of their homes, and the goods will be delivered right to their door. They will also have more access to a greater variety of imported and local varieties. Online merchants may help their clients by providing discounts and free shipping. Furthermore, the industry has expanded due to the growing trend of digitalization.

Extra Virgin Coconut Oil-Based Baby Products Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

North America is the largest growing market. Countries like the United States and Canada are at the forefront. The primary reason for this is the well-established economy. This makes it easier for the region to fund projects. Secondly, a lot of consumers are well aware of the benefits of this product, driving a broader base. Apart from this, innovations in baby products and the expansion of product lines through partnerships have helped with many launches. Asia-Pacific is the fastest-growing market. Countries like India and the Philippines are the largest producers and consumers of coconut oil. As a result, these countries are involved in the import and export of this oil. This increases the revenue significantly. Secondly, many well-established players are present here. They have a global presence, yielding greater profits. Prominent ones include Himalaya Herbal Healthcare, Sebapharma GmbH & Co. KG, Pigeon Corporation, and Cussons Baby. Thirdly, the presence of distribution channels in the form of convenience stores and online retail helps the market. Besides this, urbanization has led to better conditions, raising the standard of living. People have an increasing disposable income. Consumer awareness of non-toxic and safe products is fueling the growth.

COVID-19 Impact Analysis on the Global Extra Virgin Coconut Oil-Based Baby Products Market:

The outbreak of the virus had a mixed impact on the market. Lockdowns, mobility limitations, and social isolation were all part of the new normal. This affected supply chain management, logistics, and transportation. Working remotely was the primary focus. Production and manufacturing activities were halted. Operations were hampered by safety regulations. An economic recession was seen. Numerous people experienced job loss. A lot of couples postponed their plans to conceive during this period. According to a report by NYU Langone, in comparison to the previous year, there were 18 fewer births per month per 100,000 women of reproductive age in the United States nine months after the epidemic started. On the other hand, following the second wave in 2021, fertility decreased by around 9 births per 100,000 women per month, which was comparable to the pace at which fertility had been declining nationally before the pandemic. Projects relating to healthcare were intended to get the most share. Launches and partnerships were delayed as a result. Many only bought essentials. However, on the other hand, organic substances gained tremendous prominence. People started to realize the importance of health. Virgin coconut oil was given to suspected COVID-19 patients, and a recent study headed by the Philippines Department of Science and Technology (DOST) found that these patients recovered more quickly and experienced fewer symptoms. This led to an increased use of oil in many products. A lot of parents started to choose certified organic options that included extra-virgin coconut oil-based products. Online retail became a boon. People were able to place orders from their houses. As a result, sales started to rise. Post-pandemic, the market has continued to pick up. Normal functioning has resumed due to the relaxation of rules and regulations.

Latest Trends/ Developments:

Companies in this industry are motivated to increase their market share by using a range of strategies, including acquisitions, joint ventures, and investments. Businesses are spending a lot of money to develop techniques to retain competitive pricing. Further growth has resulted from this. Personalization of products is a recent emerging trend. Baby products are tailored as per the needs of the baby. In response to consumer demand for customized solutions, companies that provide customizable options like customized skincare bundles catered to particular newborn skincare requirements or preferences have been making an appearance in the market for EVCO-based baby goods.

Key Players:

1. Johnson & Johnson

2. The Honest Company

3. Earth Mama Organics

4. Burt's Bees (Clorox Company)

5. Babyganics (SC Johnson)

6. SheaMoisture (Unilever)

7. California Baby

8. Aveeno Baby (Johnson & Johnson)

9. Mustela (Expanscience Laboratories)

10. Nature's Paradise

• In August 2023, Marico's Parachute Advansed launched a baby range of products, including massage oil, lotion, wash, and soap.  Made with just natural oils and other components like coconut milk and water, the products are safe and mild enough for babies. Enriched with the goodness of 100% virgin coconut oil, the Parachute Advansed baby range is doctor-certified and safe for newborns.

• In February 2022, the introduction of Virgin Coconut Oil by Dabur India, a prominent Ayurvedic and Natural Health Care Company in India, further solidified its position in the coconut oil industry. Dabur Virgin Coconut Oil is entirely natural and can be used as a massage oil and for skin and hair health in babies.