The top 5 coconut producing countries in the world are: Indonesia, The Philippines, India, Sri Lanka and Brazil. At The Coconut Company, we’re proud to bring you coconut products from Indonesia, The Philippines and Sri Lanka. It’s a fascinating industry, and as part of understanding the provenance of our food, we thought it’d be interesting to give you an overview.
Why is the coconut tree the ‘tree of life’?
The coconut tree, with its towering height and abundant canopy, is often revered as the ‘tree of life’ for its remarkable versatility and the multitude of ways in which it is used. From its roots to its fruits, virtually every part of the coconut palm serves a purpose, making it an indispensable resource for many communities.
Coconuts as food
First and foremost, the coconut tree provides sustenance in the form of nutritious coconuts. Coconuts offer hydration with their refreshing water and nourishment with their creamy flesh. Coconut water is not only delicious but also packed with electrolytes, making it a natural hydrating beverage. The flesh, whether consumed fresh, dried, turned into milk, coconut flour or pressed into oil, is a staple ingredient in countless cuisines, adding flavour and nutritional value to dishes around the globe.
But we also get nectar from the flower and that can also create healthy vinegars and coconut sugar.
Coconut used in other ways
Coconut leaves are woven into thatch for roofing, mats, and baskets. The trunk, known for its sturdy and resilient nature, is used in construction for building materials and even as a source of timber.
The coconut tree keeps giving
One of the most remarkable features of the coconut palm is its ability to thrive in diverse environments and withstand harsh conditions. It flourishes along tropical coastlines, its roots anchoring sandy soils and preventing erosion. In regions prone to hurricanes or tsunamis, the flexible trunk and resilient fronds offer protection and stability, earning the tree a reputation as a symbol of resilience and survival.
The coconut industry in 2024
The global coconut industry was worth a staggering $4,512 million in 2023 and is set to top $31 billion by 2026. The industry has seen a huge rate of growth with growing demand from countries like the USA, UK, Germany and other European countries seeking coconut products from tropical climes. Western communities are realising the immense value of coconut food products for a healthy lifestyle.
The Philippines tends to concentrate on producing the more traditional products, such as coconut water, oil and desiccated. Sri Lanka is strong at innovation and offers a wide variety of different products, but produces lower volumes compared with The Philippines and Indonesia. Indonesia is very strong at producing sap based products such as coconut sugar, nectar and coconut aminos.
The favoured coconut products in order are:
· Coconut water
· Coconut milk (we have both tinned coconut milk and dried coconut milk available from sustainable organic sources)
· Coconut oil – buy yours from The Coconut Company
· Coconut snacks
· Desiccated coconut
· Coconut fibre
These products are predominantly used in the food and beverage market. As said, coconut products are increasingly being recognised for their health giving benefits. For example, coconut oil has antimicrobial and antioxidant properties, making a great choice for cooking. Coconut milk is rich in vitamin C and iron while also being vegan.
Furthermore, coconut products are increasingly in demand within the cosmetic and healthcare industries. Skincare and haircare products often have a coconut oil base due its protective factors such as antimicrobial, anti-inflammatory and healing properties.
Is the coconut industry stable and sustainable?
There are questions about the sustainability of the coconut industry, and this is why businesses like ours must take a conscientious approach to sourcing coconut products for our customers. We choose to work closely with local communities in Indonesia, The Philippines and Sri Lanka to work with farmers, where we can see complete traceability back to each plantation. We ensure farmers and their co-operatives have ethical policies in place for their workforce. We only work with factories that are certified to high GFSI standards and have a reliable sustainability policy in place that is verified through on site visits. In this way, we ensure you always get the best products, and we do so in a way that protects local communities and reduces strain on the environment when possible. Where possible, we like to work with factories that hold FairTrade or FairChoice certifications.
There are two big global events which have impacted the global coconut market and lead to instability in supply: the pandemic and the Russia-Ukraine War.
The Covid pandemic led to huge shifts in consumer buying behaviour. You, the consumer, want to buy your coconut products online. Although many of our coconut products are stocked in physical stores, both bulk buyers and individual shoppers can buy what they need in our online store. Alongside the shift to digital buying there’s been a big shift in awareness – people want coconut products because they are learning that they can be part of a healthy lifestyle, versatile and can be a great substitute for dairy.
The Russia-Ukraine war has hugely impacted supply chains globally, as well as the current crisis in Middle East. In the same way as other industries, it’s injected a degree of volatility into the global coconut market by changing freight routes and increasing freight costs. These global issues will not be quickly resolved and we expect further volatility in the months ahead.
Will the tree of life remain popular?
The coconut palm has been a vital part of tropical communities stretching back through history for centuries and we do not expect that to change. Now that it’s becoming more popular for Western communities too, we need to ensure the industry is sustainable and a fair price is paid for labour and goods.
There are many benefits of coconut farming to local communities, as long as they are able to work with reputable and supportive partners. These benefits include:
· Economic stability: Coconut farming provides a reliable source of income for communities, as coconuts can be harvested year-round. This stability helps lift families out of poverty and supports local economies.
· Diverse revenue streams: Beyond coconut fruits, various parts of the coconut tree are valuable, including tapping the tree for sap (as used in many of our products). Coconut husks can be used for coir production, coconut shells for charcoal, and coconut oil for cooking and cosmetics. This diversity of products allows communities to maximise their revenue potential.
· Employment opportunities: Coconut farming creates jobs within the community, from planting and harvesting to processing and selling coconut products. This not only reduces unemployment but also fosters skill development and entrepreneurship.
· Environmental benefits: Coconut farming is often practiced in agroforestry systems, which promote biodiversity and soil conservation. Coconut palms help prevent soil erosion, maintain water quality, and support wildlife habitats, contributing to overall ecosystem health. We urge the support of organic coconut farming.
· Cultural Preservation: In many regions, coconuts hold cultural significance and are deeply ingrained in local traditions and rituals. Coconut farming helps preserve these cultural connections and traditional knowledge passed down through generations.
The best coconut products
At The Coconut Company, we are proud to bring you the best organic coconut food products from Indonesia, The Philippines and Sri Lanka. Check out our shop for yourself.
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