Global Coconut Water and Milk Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

What is the Global Coconut Water and Milk Market Size and Growth Rate?

• The global coconut water and milk market size was valued at USD 15.14 billion in 2024 and is expected to reach USD 51.04 billion by 2032, at a CAGR of 16.40% during the forecast period
• A positive outlook towards adopting a plant-based diet and rising awareness of health consciousness among the population are some of the major factors driving market growth. However, stringent regulatory standards and certification requirements are restraining market growth
• On the other hand, increasing variations of coconut water and milk are expected to create an opportunity for market growth. Whereas, competition from non-coconut-based functional beverages and plant-based milk is expected to challenge market growth

What are the Major Takeaways of Coconut Water and Milk Market?

• Consumers are increasingly aware of the nutritional advantages associated with coconut-based products. Coconut water is recognized for its natural electrolytes and hydration properties, making it a popular alternative to traditional sugary beverages
• The health-conscious demographic, particularly Millennials and Gen Z, is drawn to the natural and nutrient-rich attributes of coconut water, positioning it as a preferred beverage in their wellness routines. This trend is further strengthened by successful marketing campaigns that emphasize the health benefits of coconut water, portraying it as a refreshing and health-enhancing choice
• Asia-Pacific dominated the coconut water and milk market with the largest revenue share of 33.57% in 2024, driven by rising health consciousness, increasing disposable incomes, and growing demand for natural, plant-based beverages
• Europe coconut water and milk market is poised to grow at the fastest CAGR of 11.24% from 2025 to 2032, driven by rising demand for plant-based beverages, heightened health and wellness trends, and the shift toward sustainable and ethical sourcing
• The Water segment dominated the market with the largest revenue share of 43.2% in 2024, driven by its rising popularity as a natural hydration solution rich in electrolytes and low in calories

Report Scope and Coconut Water and Milk Market Segmentation       

What is the Key Trend in the Coconut Water and Milk Market?

Rising Demand for Plant-Based and Functional Beverages

• A significant and accelerating trend in the global coconut water and milk market is the growing shift towards plant-based and functional beverages driven by health-conscious consumers seeking natural hydration and nutritional benefits. Coconut-based products are increasingly marketed as clean-label, sustainable alternatives to dairy and artificial drinks
• For instance, Harmless Harvest launched fortified coconut water infused with probiotics to cater to consumers seeking digestive health benefits, while The Vita Coco Company expanded its product range with protein-enriched coconut milk blends targeting fitness enthusiasts
• Functional innovations such as low-sugar variants, fortified beverages, and ready-to-drink (RTD) coconut lattes are shaping consumer preferences, as brands emphasize hydration, immunity, and energy-boosting properties
• The integration of coconut water and milk into on-the-go formats, such as tetra packs and cans, aligns with the trend toward convenience and premiumization, offering both taste and functionality
• This trend towards health-focused, plant-based, and versatile products is reshaping consumer expectations, pushing brands to innovate with flavors, sustainability claims, and nutritional enhancements. Companies such as PepsiCo (through O.N.E. and Naked Juice brands) and Dabur India Ltd. are leading efforts to diversify their coconut beverage portfolios
• Demand for functional and plant-based coconut beverages is expected to grow rapidly across both developed and emerging markets as consumers increasingly prioritize wellness, sustainability, and convenience

What are the Key Drivers of Coconut Water and Milk Market?

• Increasing consumer preference for natural and plant-based beverages, driven by rising health awareness, lactose intolerance, and the popularity of vegan diets, is a major factor propelling market growth
• For instance, in June 2024, RAW C launched eco-friendly coconut water multipacks in Australia, emphasizing both sustainability and hydration benefits to appeal to environmentally conscious consumers
• The rapid expansion of the functional beverage segment is boosting demand for coconut water and milk, as these products are rich in electrolytes, vitamins, and minerals, making them ideal for sports nutrition and daily wellness routines
• Growing penetration of modern retail formats and e-commerce platforms enables wider availability of premium coconut-based drinks, allowing brands to reach global consumers more effectively
• In addition, product innovations—such as flavored coconut milk for coffee, RTD smoothies, and zero-sugar coconut water—are attracting new consumer segments, including millennials and fitness enthusiasts
• Together, these factors position coconut water and milk as key players in the natural hydration and functional beverage markets, accelerating adoption globally

Which Factor is challenging the Growth of the Coconut Water and Milk Market?

• Supply chain volatility and price fluctuations of coconuts pose significant challenges to the consistent growth of the coconut water and milk market. Seasonal variations, climate change, and geopolitical factors affect raw material availability, impacting production costs and pricing
• For instance, severe weather disruptions in Southeast Asia key sourcing regions for coconuts have caused spikes in raw material costs, pressuring profit margins for brands such as Cocomi Bio Organic and RITA Food & Drink Co., Ltd
• Another challenge is product perishability and the need for advanced packaging solutions to maintain freshness without compromising natural qualities, which adds to operational expenses
• The market also faces intensifying competition from other plant-based beverages such as almond milk, oat milk, and infused waters, which can divert consumer attention and spending
• Furthermore, premium pricing for organic and functional coconut-based beverages can limit adoption among price-sensitive consumers, especially in developing markets where affordability remains a key factor
• Overcoming these challenges through sustainable sourcing, cost-effective processing, and consumer education on nutritional benefits will be critical for ensuring sustained market expansion

How is the Coconut Water and Milk Market Segmented?

The market is segmented on the basis of product and application.

• By Product

On the basis of product, the coconut water and milk market is segmented into Water and Milk. The Water segment dominated the market with the largest revenue share of 43.2% in 2024, driven by its rising popularity as a natural hydration solution rich in electrolytes and low in calories. Consumers increasingly prefer coconut water for its clean-label positioning and suitability for sports nutrition, wellness routines, and everyday consumption. Expanding distribution through retail and e-commerce channels further strengthens its market position.

The Milk segment is anticipated to witness the fastest growth rate of 21.7% from 2025 to 2032, fueled by increasing adoption in plant-based diets and the rising demand for dairy alternatives. Coconut milk’s versatility in foodservice, bakery, and functional beverages, combined with growing innovations in flavored and fortified variants, contributes to its accelerating popularity across both developed and emerging markets.

• By Application

On the basis of application, the coconut water and milk market is segmented into Cosmetics, Food and Beverages, and Others. The Food and Beverages segment accounted for the largest market revenue share in 2024, driven by the expanding use of coconut-based products in RTD beverages, smoothies, dairy alternatives, and culinary applications. Increasing consumer demand for functional, plant-based, and clean-label ingredients continues to bolster this segment.

The Cosmetics segment is expected to witness the fastest CAGR from 2025 to 2032, driven by the rising utilization of coconut water and milk in skincare and haircare formulations due to their hydrating and nutrient-rich properties. Growing awareness of natural and sustainable personal care products is further amplifying demand in this category.

Which Region Holds the Largest Share of the Coconut Water and Milk Market?

• Asia-Pacific dominated the coconut water and milk market with the largest revenue share of 33.57% in 2024, driven by rising health consciousness, increasing disposable incomes, and growing demand for natural, plant-based beverages
• Consumers in the region highly value the hydration, nutritional benefits, and versatility of Coconut Water and Milk across beverages, culinary applications, and personal care
• This strong adoption is further supported by abundant coconut production, expanding retail networks, and the surge in functional beverage demand, positioning Asia-Pacific as the global leader in this market

China Coconut Water and Milk Market Insight

China coconut water and milk market captured the largest revenue share in 2024 within Asia-Pacific, fueled by the expanding middle class and rising demand for clean-label, premium beverages. Increasing urbanization and the popularity of on-the-go hydration solutions further drive consumption. In addition, strong domestic manufacturing and government support for food innovation are bolstering the country’s dominance in this sector.

Japan Coconut Water and Milk Market Insight

The Japan coconut water and milk market is gaining momentum due to the country’s preference for functional and health-focused beverages. The trend toward plant-based diets and the integration of coconut-based ingredients in RTD beverages, desserts, and cosmetics are fueling growth. Furthermore, Japan’s aging population is increasingly turning to nutrient-rich, low-sugar drinks, supporting sustained demand.

India Coconut Water and Milk Market Insight

The India coconut water and milk market is expected to expand steadily, driven by the abundant availability of coconuts, rising health awareness, and increasing consumption of natural hydration products. Rapid growth in modern retail, e-commerce channels, and the introduction of value-added coconut products are boosting adoption among urban and semi-urban consumers.

Which Region is the Fastest Growing Region in the Coconut Water and Milk Market?

Europe coconut water and milk market is poised to grow at the fastest CAGR of 11.24% from 2025 to 2032, driven by rising demand for plant-based beverages, heightened health and wellness trends, and the shift toward sustainable and ethical sourcing. Increasing penetration of coconut-based products in foodservice, functional beverages, and cosmetics is propelling growth across key European markets.

U.K. Coconut Water and Milk Market Insight

The U.K. coconut water and milk market is anticipated to grow significantly, fueled by the popularity of plant-based diets and the increasing preference for low-calorie, functional beverages. Strong retail presence and innovative product launches, such as fortified coconut beverages, are further accelerating market expansion.

Germany Coconut Water and Milk Market Insight

The Germany coconut water and milk market is experiencing substantial growth, driven by consumer focus on organic, sustainable, and premium-quality products. Coconut water and milk are gaining traction in cosmetic formulations, functional foods, and dairy alternatives, supported by the country’s robust health-conscious and eco-friendly consumer base.

Which are the Top Companies in Coconut Water and Milk Market?

The coconut water and milk industry is primarily led by well-established companies, including:

• The Vita Coco Company (U.S.)
• ZICO Rising, Inc. (U.S.)
• Harmless Harvest (U.S.)
• Amy & Brain Naturals (U.S.)
• PepsiCo, Inc. (U.S.)
• Ben Tre (Vietnam)
• Thaicoconut (Thailand)
• The Neighborhood Beverage Co. (U.S.)
• Pamposh Foods India Pvt. (India)
• NILO (U.K.)
• MADHURA COCO FRESH (India)
• Roligt Foods Pvt Ltd (India)
• CocoCoast (Australia)
• Innovative Food & Beverage (India)
• RAW C (Australia)
• CoAqua (New Zealand)
• Lifetree Agro Foods Pvt. Ltd (India)
• RITA Food & Drink Co., Ltd. (Vietnam)
• TROPICAL SUN (U.K.)
• C-COCONUT WATER (Australia)
• Life Refreshed Brands - Real Coco. (U.S.)
• Cocomi Bio Organic (Sri Lanka)
• Made (Aust) Pty Ltd. (Australia)
• Dabur India Ltd. (India)
• Arcadia Biosciences (U.S.)

What are the Recent Developments in Global Coconut Water and Milk Market?

• In March 2025, Hamdard introduced Hamdard Refresh Nariyal Paani, a new coconut water variant packaged in an aseptic brick pack. This product offers natural electrolytes and no added sugar, providing the same benefits as traditional coconut water at a more affordable price point. Made from concentrated coconut extract, it aims to deliver instant hydration to health-conscious consumers, strengthening Hamdard’s presence in the value segment of the market
• In July 2024, Yu, an omnichannel brand, launched a 100% coconut water beverage designed to deliver the authentic taste and nutritional benefits of fresh coconuts. Positioned as a natural and refreshing drink, this product caters to the growing demand for healthy, natural beverages, helping Yu enhance its portfolio and compete more effectively in the premium hydration segment
• In March 2024, Indian entrepreneur Arjun Talwar unveiled Bervera, a coconut water brand targeting the global beverage mixer market. Bervera markets its product as a healthy alternative for cocktails and mocktails, tapping into the rising trend of functional and nutritious drink mixers, thereby expanding its scope in both domestic and international markets
• In April 2023, ITC’s B Natural Juices and Beverages rolled out B Natural Select Tender Coconut Water nationwide in India. Free from added sugar, artificial flavors, and fats, this product emphasizes natural hydration and caters to seasonal demand for refreshing beverages, reinforcing ITC’s position in the natural drinks category
• In February 2023, The Vita Coco Company expanded its coconut water portfolio by partnering with Diageo to launch canned cocktails while marketing coconut water as a hangover cure. This strategic move is expected to broaden Vita Coco’s market reach and strengthen its competitive positioning in the functional beverage space

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