The global coconut water market is expected to grow at a compound rate of 26.75% until 2020, according to a new report.
Research and Markets said that new product development would be instrumental in driving growth, with Coca-Cola, PepsiCo and Vita Coco helping to make the category among the most mainstream of the alternative water segments. Their dominance of the market is in stark contrast to other plant water categories, which tend to be more fragmented and are usually divided between several small, local players.
The research confirms the findings of an earlier report from food and drink consultancy Zenith Global, which said that the overall alternative waters market had grown by 21% in 2016 to a value of $2.7 billion, and would double in size to reach $5.4 billion by 2020.
Volume has so far been driven by the trend towards healthy hydration, as consumers seek alternatives to sugar-sweetened soft drinks, Zenith said. The majority of value came from North and South America, where sales of coconut water and maple water are strongest.
Coconut water dominates, accounting for 96% of volume and 86% of value in 2016, while new segments such as bamboo water and cactus water have begun to emerge.
Zenith senior market analyst Portia Rifat said: “Asia-Pacific and South America are expected to be the fastest growth markets for coconut water. Both have high unpackaged coconut water consumption and thus particular scope for packaged coconut water. The much smaller maple water segment is projected to triple in size to 2020. North America offers the greatest potential for innovation in natural flavours and organic sourcing. The best prospects for birch water are in Western Europe.”
Zenith forecasts that the global market for alternative waters will approach 1.9 billion litres by 2020, benefitting from increasing sales in both the mainstream and premium markets. The main opportunities for brands in the alternative waters market include providing premium, craft, organic and not-from-concentrate plant waters, the UK-based business said.
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