Global Virgin Coconut Oil Market By Type (Organic, Natural), By Product Type (Refined, Unrefined), By Application (Beauty and Cosmetic, Food and Beverages, Pharmaceuticals, Others), By Distribution Channel (Online Channel, Offline Channel) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2024-2033

Report Overview

The Global Virgin Coconut Oil Market size is expected to be worth around USD 3.5 Bn by 2033, from USD 1.5 Bn in 2023, growing at a CAGR of 8.8% during the forecast period from 2024 to 2033.

Virgin Coconut Oil (VCO) is a type of coconut oil that is extracted from fresh coconut meat using methods that do not involve heat or chemicals, preserving the oil’s natural nutrients, antioxidants, and flavor. The term “virgin” refers to the fact that the oil is produced without refining, bleaching, or deodorizing, making it a more natural and pure form of coconut oil compared to regular refined coconut oil.

Virgin coconut oil is known for its high content of medium-chain triglycerides (MCTs), particularly lauric acid, which is believed to have various health benefits, including antimicrobial properties and supporting cardiovascular health. It is commonly used in cooking, skincare, hair care, and as a supplement due to its potential health benefits.

Virgin Coconut Oil (VCO) has gained significant traction across various industries, particularly in food and beverages, cosmetics, and pharmaceuticals, due to its health benefits and versatility. In 2023, the global demand for virgin coconut oil is projected to increase, with its applications in food and beverage industries contributing significantly to this growth.

The Philippines’ share in the global coconut oil market is approximately 60%. This growth is supported by the increasing global demand for plant-based oils and clean label products, particularly in the health-conscious food sector.

Government initiatives have also played a key role in promoting the expansion of the VCO market. For instance, the Government of India launched a program to boost the coconut industry under its National Mission on Edible Oils – Oil Palm and Coconut initiative. This aims to increase production and export of VCO by 15-20% by 2025.

The Indian government has allocated USD 170 million in subsidies to support VCO production and promote it as a value-added product. Additionally, the rise of private investments in the VCO sector is evident, with companies like Coconut Holdings, investing over USD 50 million in expanding processing facilities in Southeast Asia to meet the growing demand.

In terms of innovation, several companies have formed strategic partnerships to improve the extraction process and expand their market presence. For example, Sundrop Foods, a major producer of VCO in Sri Lanka, partnered with Austrian food conglomerate Agrana Group in 2023 to develop new applications for VCO in both food and skincare products, focusing on boosting the oil’s presence in international markets.

Similarly, Dabur India, a key player in the health and wellness sector, launched an innovative virgin coconut oil product line in 2024, designed specifically for use in beauty and personal care, capitalizing on the growing demand for natural and organic cosmetics.

The increasing demand for virgin coconut oil in the personal care sector is also backed by government regulations that ensure its quality and safety. In 2023, the European Union introduced stricter guidelines on the labeling of organic coconut oil products, requiring companies to certify their oils as organic through accredited certification bodies. This is expected to further drive the consumption of virgin coconut oil, as it aligns with the rising demand for organic and ethically sourced ingredients in the personal care industry.

Key Takeaways

• Virgin Coconut Oil Market size is expected to be worth around USD 3.5 Bn by 2033, from USD 1.5 Bn in 2023, growing at a CAGR of 8.8%.
• Organic Virgin Coconut Oil held a dominant market position, capturing more than a 65.9% share.
• Refined Virgin Coconut Oil held a dominant market position, capturing more than a 65.4% share.
• Food and Beverages held a dominant market position, capturing more than a 56.4% share.
• Offline Channel held a dominant market position, capturing more than a 73.2% share of the Virgin Coconut Oil market.

By Type

In 2023, Organic Virgin Coconut Oil held a dominant market position, capturing more than a 65.9% share of the global market. The increasing consumer preference for organic products, driven by concerns over health and sustainability, has contributed significantly to this growth. Organic virgin coconut oil is produced from coconuts that are grown without synthetic pesticides or fertilizers, making it a sought-after choice among health-conscious consumers.

In recent years, the demand for organic VCO has surged, particularly in developed markets like North America and Europe, where consumers are more inclined to choose natural and organic alternatives. The market for organic VCO has been further boosted by rising awareness of its various health benefits, such as its potential to improve skin health, reduce inflammation, and support weight management.

On the other hand, Natural Virgin Coconut Oil, which is produced using traditional methods but may not meet the strict criteria for organic certification, holds a smaller share of the market. In 2023, Natural VCO accounted for the remaining share, although its popularity has grown due to its affordability compared to organic variants.

While consumers in emerging markets often prefer natural VCO for its lower price point, organic VCO remains the more preferred option in developed regions. However, as awareness of the benefits of virgin coconut oil spreads, Natural VCO continues to show steady demand, especially in price-sensitive markets.

By Product Type

In 2023, Refined Virgin Coconut Oil held a dominant market position, capturing more than a 65.4% share of the global market. Refined VCO is produced through a process that involves filtering and bleaching, which removes impurities and results in a clearer, more neutral oil in terms of color and flavor.

This makes refined VCO more versatile for use in a wide range of applications, including food products, cosmetics, and industrial uses. Its affordability and longer shelf life compared to unrefined versions also contribute to its widespread popularity, particularly in price-sensitive markets. As consumer demand for multifunctional oils continues to rise, refined VCO remains the preferred choice for both large-scale commercial producers and everyday consumers.

On the other hand, Unrefined Virgin Coconut Oil accounts for the remaining share of the market, though it is growing steadily due to its premium quality and perceived health benefits. Unrefined VCO is made from fresh coconut meat and retains more of the natural nutrients, including antioxidants, vitamins, and minerals. This makes it a popular choice among health-conscious consumers and those seeking more natural, minimally processed products.

In 2023, unrefined VCO continued to see growth in developed markets, particularly in the health and wellness sector, where consumers are increasingly opting for organic and unrefined oils for their skincare routines and dietary needs. However, it still lags behind refined VCO in terms of overall market share, as it tends to be more expensive and has a shorter shelf life.

By Application

In 2023, Food and Beverages held a dominant market position, capturing more than a 56.4% share of the global virgin coconut oil market. The growing consumer preference for natural and healthier ingredients in food products has significantly boosted the demand for virgin coconut oil in this sector.

It is widely used as a cooking oil, ingredient in snack foods, and as a replacement for other oils in processed foods due to its health benefits, including its high content of medium-chain triglycerides (MCTs). As consumers increasingly lean toward plant-based and clean-label products, virgin coconut oil’s popularity has grown, particularly in health-conscious markets like North America and Europe. The demand for VCO in dairy alternatives, such as plant-based milk and butter, has also contributed to its significant share in the food and beverage sector.

In contrast, the Beauty and Cosmetics segment holds the second-largest share, with the growing popularity of virgin coconut oil in skincare and haircare products. Due to its moisturizing properties and natural ingredients, it is increasingly used in lotions, shampoos, soaps, and anti-aging products.

The rise in consumer preference for organic and natural beauty products has further propelled its use in this industry. Although its market share is smaller than food and beverages, the cosmetics and skincare applications for virgin coconut oil continue to expand, particularly in the organic beauty space.

The Pharmaceuticals segment, while smaller, is showing steady growth as virgin coconut oil is increasingly incorporated into supplements and health-related products. Its anti-inflammatory and antimicrobial properties make it suitable for use in health supplements and therapeutic oils.

By Distribution Channel

In 2023, the Offline Channel held a dominant market position, capturing more than a 73.2% share of the Virgin Coconut Oil market. This significant share can be attributed to the longstanding preference for physical retail experiences, where consumers could directly assess the quality and authenticity of the product.

The widespread availability of Virgin Coconut Oil in supermarkets, health food stores, and specialty outlets across various regions played a crucial role in driving offline sales. Furthermore, the strong consumer trust in traditional brick-and-mortar retail outlets contributed to the continued growth of this distribution channel.

However, the Online Channel has been steadily gaining ground over the years. In 2023, it accounted for the remaining share of the market, a growth driven by the increasing trend of online shopping and the growing popularity of e-commerce platforms. With the convenience of home delivery, detailed product descriptions, and customer reviews, consumers are becoming more inclined to purchase Virgin Coconut Oil through online retailers. Additionally, the ease of comparison shopping and the ability to access global brands have made the online channel an appealing option for a broader consumer base.

Key Market Segments

By Type

• Organic
• Natural

By Product Type

• Refined
• Unrefined

By Application

• Beauty and Cosmetic
• Food and Beverages
• Pharmaceuticals
• Others

By Distribution Channel

• Online Channel
• Offline Channel

Drivers

Rising Consumer Demand for Natural and Organic Products

One of the major driving factors for the growth of the Virgin Coconut Oil (VCO) market is the increasing global demand for natural and organic products. As consumers become more health-conscious and aware of the harmful effects of synthetic additives and preservatives, there has been a significant shift toward natural, organic alternatives.

Virgin coconut oil, known for its minimal processing and high nutrient content, fits perfectly into this trend. It is free from chemicals, pesticides, and artificial additives, which appeals to a growing segment of health-focused consumers.

Government initiatives are also playing a role in supporting the growth of the VCO market. For instance, the Philippine Department of Agriculture has been promoting coconut production through its various programs, aiming to increase the country’s export volume of coconut oil products.

The Philippines is the world’s largest producer of VCO, accounting for approximately 60% of global exports. In 2023, the Philippine coconut industry earned USD 1.3 billion from coconut oil exports, a 12% increase from USD 1.16 billion in 2022. These efforts not only help boost the supply of virgin coconut oil but also improve global awareness of the benefits of VCO.

Additionally, the rise of plant-based diets and the increasing use of coconut oil as a cooking ingredient have further contributed to its growth in the food sector. As consumers become more aware of the health benefits of coconut oil, such as its high content of medium-chain triglycerides (MCTs), which are linked to weight management and improved metabolism, demand for virgin coconut oil continues to rise. It is now commonly used in cooking, baking, and in dairy alternative products, such as plant-based milks and ice creams.

Restraints

High Price and Supply Chain Challenges

In 2023, the average price of virgin coconut oil ranged from USD 7 to USD 12 per liter, depending on the region and brand. In contrast, more commonly used oils like soybean oil or palm oil are priced between USD 2 to USD 4 per liter. This significant price difference poses a challenge for consumers, especially in emerging markets where cost is a major factor in purchase decisions.

According to the Food and Agriculture Organization (FAO), the cost of coconut production has been rising due to several factors, including labor shortages, poor infrastructure, and the increasing costs of raw materials, which further push up the price of VCO.

The production of virgin coconut oil is highly dependent on coconut farming, which is subject to climate-related risks such as droughts, typhoons, and changing weather patterns. The Philippine Coconut Authority reported in 2023 that coconut farmers in the Philippines, the world’s largest producer of coconut oil, faced challenges due to natural disasters like Typhoon Odette in late 2021, which severely damaged coconut trees. This has led to a 10% decline in coconut production, further straining the supply of raw materials for VCO and increasing the prices.

Another challenge facing the VCO market is the longer extraction process and the labor-intensive nature of producing virgin coconut oil. Unlike refined oils, which can be produced at a larger scale with more automated processes, VCO requires fresh coconuts to be manually processed within hours of harvesting to preserve its quality. This results in higher labor costs and limited scalability, which contributes to the premium pricing of VCO.

Government initiatives in major coconut-producing countries like the Philippines and Indonesia are working to improve coconut farming practices and reduce the impact of climate risks.

For example, the Philippine government has been implementing strategies to rehabilitate damaged coconut farms and improve farming techniques, with an estimated USD 24 million invested in coconut restoration projects. However, despite these efforts, the cost and supply chain inefficiencies remain a significant hurdle to making virgin coconut oil more affordable and accessible to a larger consumer base.

Opportunity

Growing Demand for Natural and Organic Personal Care Products

This shift toward organic and clean-label products is driven by increasing consumer awareness about the negative effects of chemicals like parabens, sulfates, and phthalates. Virgin coconut oil fits perfectly into this trend due to its natural, chemical-free nature and its numerous skincare benefits, which include nourishing the skin, reducing inflammation, and improving skin elasticity.

The United States and Europe have seen substantial growth in the demand for natural and organic skincare products. In 2023, the organic beauty sector in the U.S. was valued at USD 5.4 billion, with a projected growth rate of 10.5% CAGR until 2026.

This growth is supported by the rise of ethical consumerism, where people are increasingly choosing products that align with their values, such as sustainability and environmental responsibility. Virgin coconut oil, sourced from coconuts in tropical regions like the Philippines and Indonesia, is a key ingredient in these products and is gaining significant traction.

Governments and organizations are also supporting this growth. In the Philippines, the Coconut Industry Investment Fund (CIIF) has been working to promote the export of virgin coconut oil and other coconut-based products.

In 2023, the Philippine government announced plans to expand its export of coconut oil to USD 1.5 billion, up from USD 1.3 billion in 2022, driven by the global demand for organic and natural products. This initiative is aimed at supporting small-scale coconut farmers and enhancing the Philippines’ position as the largest supplier of coconut oil worldwide.

Additionally, as consumers increasingly demand transparency in product ingredients, companies are focusing on sourcing and producing high-quality virgin coconut oil that meets organic certification standards.

This shift is further fueling the demand for VCO in personal care products, particularly in the growing segment of clean beauty. Companies like Unilever and Procter & Gamble are incorporating more natural ingredients like coconut oil in their formulations, and this is expected to continue to drive market expansion.

Trends

Rise in Popularity of Virgin Coconut Oil in Plant-Based and Vegan Diets

In fact, according to a report from the Plant Based Foods Association, U.S. sales of plant-based foods grew by 27% in 2022, which shows a significant shift towards plant-based alternatives. Virgin coconut oil is frequently used in these products as a substitute for dairy fats and other animal-based oils, due to its similar consistency and rich flavor profile.

Virgin coconut oil’s popularity is particularly evident in the dairy alternatives sector. In 2023, the global market for plant-based dairy alternatives was valued at USD 26.3 billion, with almond milk, coconut milk, and oat milk leading the way. Coconut milk, which often contains virgin coconut oil as one of its key ingredients, is increasingly favored by consumers seeking vegan and lactose-free options. The rise in vegan and plant-based diets has driven demand for coconut oil-based products in both food and beverages.

Moreover, government initiatives are supporting the growth of the plant-based and vegan food sectors, indirectly benefiting the virgin coconut oil market. For example, the European Union has invested in initiatives to support plant-based food development, with a focus on sustainable sourcing and improving food systems.

In 2023, the EU allocated EUR 3.8 billion to sustainable agriculture and the promotion of plant-based products, which is expected to increase the demand for plant-based oils like virgin coconut oil. Similarly, in the United States, the National Institute of Food and Agriculture is providing funding for plant-based food innovations, with a particular focus on improving food safety and processing.

The growing awareness of the health benefits associated with virgin coconut oil, such as its rich content of medium-chain triglycerides (MCTs), which are linked to weight management, improved metabolism, and cognitive function, is also contributing to its rise in plant-based diets. This trend is expected to continue as more people seek healthier fat alternatives.

Regional Analysis

Asia Pacific (APAC) is the dominating region in the global Virgin Coconut Oil market, holding a substantial market share of 47.8%, valued at approximately USD 0.72 billion. The region is a key producer and consumer of virgin coconut oil, primarily driven by countries like the Philippines, Indonesia, and India, which together account for a large portion of global production.

The rising consumer awareness of the health benefits associated with virgin coconut oil, such as its high antioxidant and antimicrobial properties, is boosting its demand in both domestic and international markets. APAC’s dominance is further supported by the region’s growing beauty and personal care industry, where virgin coconut oil is widely used in skincare and haircare products.

North America and Europe are also significant markets for virgin coconut oil, with North America benefiting from the increasing trend towards natural and organic products, especially in the food and cosmetic sectors. The U.S. leads the North American market, with a rising demand for clean-label, non-GMO, and organic oils. Europe’s market, while smaller, has seen growth, particularly in countries such as Germany and the UK, driven by health-conscious consumers and increasing interest in plant-based and sustainable ingredients.

In Latin America, the market is experiencing steady growth, primarily in Brazil, where there is growing adoption of coconut-based products for both culinary and cosmetic applications. Meanwhile, the Middle East & Africa remains a niche market but is gradually expanding due to increasing demand for natural oils in cosmetics and personal care, especially in the Gulf Cooperation Council (GCC) countries.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The Virgin Coconut Oil (VCO) market features a diverse range of players, with companies specializing in organic, natural, and high-quality coconut oil products. Barlean’s Organic Oils, LLC and Carrington Farms are prominent brands in the North American market, known for their organic coconut oil offerings.

Barlean’s, in particular, is recognized for its premium oils, including virgin coconut oil used in health and wellness products. Carrington Farms, another key player, offers both conventional and organic virgin coconut oil, catering to the growing demand for natural, clean-label products in the food and personal care sectors.

Other significant players in the VCO market include Celebes Coconut Corporation and Farmerindia, which are major producers in Asia, particularly in the Philippines and Indonesia. These companies play a crucial role in sourcing and processing virgin coconut oil, ensuring high-quality production standards.

On the wellness front, brands like Garden of Life LLC, Hain Celestial Group, and Healthy Traditions have leveraged consumer demand for natural oils in health supplements, skincare, and cooking oils. Jarrow Formulas, Inc. and Nature’s Way Brands focus on offering VCO as part of their supplement lines, capitalizing on its perceived health benefits, particularly for metabolism and skin health.

Other notable companies such as Nutiva Inc., MaxCare, and Viva Naturals are driving the market’s growth with their organic coconut oil products. Nutiva Inc., for instance, is a leading provider of organic coconut oil in North America and Europe, focusing on sustainability and ethical sourcing.

Meanwhile, SC Coco Products, Inc. and SPECTRUM ORGANIC PRODUCTS, LLC serve as key suppliers of VCO to both food and cosmetic industries, meeting the growing consumer preference for non-GMO, organic products. These companies’ continued focus on quality, sustainability, and consumer health trends are crucial in shaping the future growth of the virgin coconut oil market.

Top Key Players

• Barlean’s Organic Oils, LLC
• Carrington Farms
• Celebes Coconut Corporation
• Farmerindia
• Forest Essentials
• Garden of Life LLC
• Greenville Agro Corporation
• Hain Celestial Group
• Harvard Cocopro
• Healthy Traditions
• Jarrow Formulas, Inc.
• La Tourangelle
• MaxCare
• Nature’s Way Brands
• Naturoca
• Nutiva Inc.
• SC Coco Products, Inc
• SPECTRUM ORGANIC PRODUCTS, LLC
• Universal Corporation
• Viva Naturals

Recent Developments

In 2023 Barlean’s has also seen an increase in international sales, with a 12% year-over-year growth in markets like Europe and Asia, driven by the growing demand for organic coconut oil in both food and skincare industries.

In 2023, Carrington Farms also launched a new line of coconut oil-infused products, including cooking sprays and beauty oils, contributing to a 10% growth in its overall product portfolio.

Report Scope