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Coconut based products continue to gain momentum

According to a recent report from Innova Market Insights, coconut featured in over four percent of global soft drinks launches in the 12 months ending June 2014.

The new product launches mentioned primarily sit within the juice drinks market either as pure coconut water or in combination with other juices. The report states that coconut featured in over six percent of global juice drinks launches in 2014, up from 4.5 percent in the previous 12-month period, and from less than two percent five years ago. This rises to over 13 percent in the US market, where over eight percent of sports and energy drinks launched featured coconut water.

“With sales of traditional carbonates and still drinks relatively static in many markets, the industry appears to be turning to coconut water, which seems well placed for the task of driving growth with its exotic image, unusual flavour and natural hydration properties,” said Lu Ann Williams, director of innovation at Innova Market Insights.

“These features, along with the fact that the leading multinational soft drinks companies are already taking an active role, suggest that the sector is on course for significant further development.”

Although the market for coconut based beverages is now well established in the US, the report highlights that the market is now segmenting to maintain momentum.  For example popular energy drink brand, Rockstar released a coconut water variant while sports nutrition company, Nature’s Best released Cocotein – coconut water fortified with whey protein isolate.

Flavoured products featuring coconut water with lemonade, espresso coffee, chocolate and chili have also been introduced as well as other carbonated lines and products developed specifically for children.

Outside of the US, coconut water is also gaining in popularity in Europe with the UK seeing particularly high levels of new product activity. Nearly eight percent of juice and juice drinks launches featured coconut water in the 12 months to the end of June 2014 which is up 5.5 percent on the previous year.

In addition, PepsiCo’s Naked coconut water launched into the UK last month joining the other two US market leaders in the category, Vita Coco and Coca-Cola’s Zico which already have an established presence in the UK market. UK soft drink company AG Barr also launched a coconut water into its exotic juice range and private labels brands have also been on the rise with Bestway cash-and-carry and Marks & Spencer offering their own in-house lines.

 

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