The growth of the coconut water market is expected to reach US$4 billion by 2019, with leading global brands such as Coca Cola Co., Pepsi Co., and Red Bull GmbH driving product and market development. The traditional global value chain of the coconut is largely divided into three strands: the coconut food chain, the coconut water chain, and the coconut oil used as a feedstock for manufacturing oleochemicals.
Coconut water is a low-calorie natural beverage packed with electrolytes and potassium, and has been linked to reductions in blood pressure. Global demand for coconut water increased 700 percent between 2008 and 2014, outstripping supply, resulting in rising prices. The price of coconut oil has increased 50% since 2013, and 35% just between September 2015 and September 2016.
In the Caribbean, only the Dominican Republic and Guyana are significant coconut producers. However, the region faces challenges such as a shortage of high-yielding seedlings, fragmented value chains, aged and low-yielding plantations, and lack of access to formal finance.
Despite these challenges, the Caribbean has potential to emerge competitive in the global coconut market. Guyana, for example, hosted its First Coconut Festival in October 2016, which aimed to promote the sector, celebrate social traditions, and promote tourism. The festival featured technical presentations, business networking opportunities, and fun activities for children.
Guyanese coconut stakeholders have formed a group and have identified common constraints and drafted a roadmap to foster a public-private partnership to address those identified problems. Larger plantation owners and tour operators also saw the possibility of creating a Coconut Route featuring boat rides, walks through plantations, birding, and tasting of coconut-inspired cuisine.
References:
Abdulsamad, Ajmal, 2016. “Connecting the World Through Regional Value Chains: Partnership Opportunities in Coconut Value Chain for Small Caribbean Economies”. Final Report. International Trade Center, Geneva, Switzerland.
Technavio. 2015. Global Coconut Water Market 2015-2019.
Conclusion:
The coconut industry has significant potential for growth, and the Caribbean has an opportunity to take advantage of this trend. However, the region faces challenges that need to be addressed. Public-private partnerships, investments in seedlings, and improved processing technologies can help to increase production and competitiveness. Guyana’s Coconut Festival is a good example of how the region can come together to promote the sector and create new opportunities.
FAQs:
Q: What is the expected growth of the coconut water market?
A: The growth of the coconut water market is expected to reach US$4 billion by 2019.
Q: Who are the leading global brands driving product and market development in the coconut industry?
A: Leading global brands such as Coca Cola Co., Pepsi Co., and Red Bull GmbH are driving product and market development in the coconut industry.
Q: What are the challenges facing the coconut industry in the Caribbean?
A: The region faces challenges such as a shortage of high-yielding seedlings, fragmented value chains, aged and low-yielding plantations, and lack of access to formal finance.
Q: How can the Caribbean region increase its competitiveness in the global coconut market?
A: The region can increase its competitiveness by addressing the identified challenges, investing in seedlings, improving processing technologies, and creating public-private partnerships.
Q: What is the significance of the Coconut Festival in Guyana?
A: The Coconut Festival in Guyana aims to promote the sector, celebrate social traditions, and promote tourism in the main coconut-producing regions of the country.