Coconut Butter Market Size, Competitive Insight, Key Drivers and Regional Dynamics by 203 | Registering a CAGR of 7.2%

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WILMINGTON, DE, UNITED STATES, July 16, 2025 /EINPresswire.com/ -- Coconut butter market size generated $986.3 million in 2021, and is anticipated to generate $1.9 billion by 2031, witnessing a CAGR of 7.2% from 2022 to 2031.

The global coconut butter market is witnessing significant growth, primarily driven by increasing demand from health-conscious consumers due to its rich nutritional profile. However, the market expansion is being challenged by the outbreak of lethal yellowing disease affecting coconut plantations in Caribbean and African regions. On the brighter side, the rising popularity of organic and gluten-free coconut butter is creating fresh growth opportunities. This surge in interest is linked to its health benefits organic coconut butter is a good source of fiber and contains lauric acid, known to help reduce bad cholesterol levels.

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Key drivers fueling the global coconut butter market include its increasing application in the cosmetics and personal care sector, the rapid growth of the retail industry, rising popularity of coconut butter in culinary uses, surging demand for organic variants, and the growing presence of private label brands. Coconut butter is created by grinding the fresh, unsweetened pulp of mature coconuts into a semi-solid, creamy white paste. It is commonly sold in solid blocks that can be stored at room temperature. A 1-tablespoon (14g) serving contains about 100 calories, with a macronutrient breakdown of approximately 81% fat, 14% carbohydrates, and 4% protein.

Coconut butter offers a range of health benefits, including enhanced metabolism, improved athletic performance, better digestion, appetite control, higher energy levels, and balanced blood sugar. It also supports immune function, helps combat harmful microbes, contributes to cholesterol management, and offers protection against certain illnesses. In addition, it is known to aid in hair growth, reduce dandruff, and support weight loss.

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The global coconut butter market is analyzed on the basis of nature, end user, distribution channel, and region. On the basis of nature, the coconut butter industry is bifurcated into organic and conventional. Among these, the conventional segment occupied the major coconut butter market share in 2021 and is projected to maintain its dominance during the forecast period. Chemical fertilizers are used by farmers in conventional farming to promote plant growth. Pesticides and chemical herbicides are used in traditional food production, including conventional coconut butter. These kinds of products are low in price compared to organic products, leading to the rise in demand for conventional coconut products at a rapid pace. These coconut butter market trends are offering coconut butter market opportunity globally.

Based on region, Asia-Pacific held the highest market share in terms of revenue in 2021, accounting for nearly three-fifths of the global coconut butter market, and is likely to dominate the market during the forecast period. This region is expected to witness the fastest CAGR of 7.6% from 2022 to 2031. The expansion of the regional market is the result of factors including the enormous demand for organic coconut butter from developing nations, the increase in coconut production by big plantations, and the huge domestic use of coconut butter.

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Leading Market Players: -

Nutretiaa Industries,
Dhatu Organics & Naturals,
Hallstar,
Andy Albao Corporation,
Bali Nutra,
Phildesco Inc,
United Foods India,
MaraNatha,
Asia Botanicals Sdn Bhd,
Ceylon Coconut Company

The coconut butter industry growth has been severely impacted by the COVID-19 pandemic. Purchasing habits of the consumers eventually shifted. Since they were so concerned with their health and followed a healthy diet to ward off viral attacks, most consumers favored natural and organic products over those made of chemicals. Even though coconut products are strong and anti-microbial, people were still ingesting them. As a result, the market has benefited from the uncertainty brought on by fiscal year 2021 due to the rise in coconut butter market demand.

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