According to the findings of the Coconut and Coconut Oil Roundtable, rapid expansion of the global coconut market has been fueled by the widespread use of coconut in beauty, food and beverage, and pharmaceutical industries in recent years. Goldstein Research cited that coconut oil output in the Asia Pacific is currently growing at a pace of 1.3 percent per year with the Philippines and Indonesia at the helm as the world’s leading producers. Demand, however, is exceeding supply with both consumers and buyers seeking sustainably sourced coconut products.

Sustainable coconut has huge market potential, but the industry also faces critical production hurdles such as senile (aged) trees, natural disasters, disaggregated and complex value chain structures, and producers’ restricted access to market, finance, and technical know-how. These obstacles, when combined with falling commodity prices, result in stagnant yields, poor income, and a lack of desire to invest in the industry.