Nigeria is among the top 20 coconut producing countries in the world. But the government is still losing millions of dollars annually, because of the shortcomings of the federal government and state governments in the productions of the various products made from coconuts, especially coconut oil.
Global market size is currently US$26.39 billion in 2025, and is projected to grow to $36.69 billion by 2030 according to Research and Markets.
This growth is driven by increasing consumer demand for coconut products, which range from fresh coconuts to various processed items like coconut water, flour, and oil according to Entrepreneurs.ng.
Key aspects of the coconut market:
Value:
The market was valued at $24.78 billion in 2024, increasing to $26.39 billion in 2025.
Projected Growth:
The market is expected to grow at a Compound Annual Growth Rate (CAGR) of 6.75% from 2025 to 2030, reaching $36.69 billion.
Diverse Products:
The market encompasses a wide variety of coconut products, including coconut water, flour, oil, and fresh coconuts, catering to diverse consumer preferences and dietary needs.
Global Demand:
The increasing demand for coconut products is a major driver of market growth.
Regional Focus:
Research and Markets indicates that the Asia Pacific region has a dominant share of the global coconut market, followed by other regions like North America and Europe.
Opportunities and Challenges:
The industry faces challenges like disease management and supply chain issues, but also has opportunities for growth through innovation, product diversification, and technological advancements.
Profitability:
In Nigeria, coconut farming can be very profitable, with well-managed farms potentially generating between ₦2.4 million and ₦5 million annually per hectare, particularly when value addition is part of the business.
The virgin coconut oil market alone is projected to reach USD 9.12 billion by 2030, according to a report from Research and Markets.
Key Factors Driving Growth:
Increased health and wellness awareness:
Consumers are increasingly seeking healthier food and personal care products.
Demand for natural and organic products:
Coconut oil is a popular ingredient in natural and organic cosmetics and food products.
Growing use in various applications:
Coconut oil is used in food and beverage, personal care, and pharmaceutical industries.
Regional Breakdown:
Asia Pacific:
The largest regional market for coconut oil, driven by high production and consumption in countries like the Philippines, Indonesia, and India.
Other Regions:
North America, Europe, and other regions are also experiencing growth in the coconut oil market.
Note: The specific numbers and projections may vary slightly depending on the research firm and report.
The estimated total world production of coconuts in 2022 was 62,409,431 metric tonnes.
Nigeria is among the top 20 countries with 225,527 metric tonnes annually.
The Coconut Sufficiency in Nigeria (COSIN) initiative, a government-supported program, is aiming to establish 10,000 hectares of coconut farms across most of Nigeria's states by 2027 to boost domestic coconut production. This initiative aims to increase the supply of coconuts in Nigeria, potentially leading to increased exports and value-added products. While the term "coconut triangle" is commonly used in Sri Lanka to describe a specific region with high coconut production, it's not a widely recognized term in the context of Nigeria's coconut industry.
COSIN Initiative in Nigeria:
Goal:
To increase coconut production and reduce reliance on imports by establishing new coconut farms across the country.
Target:
Plant 10,000 hectares of coconut trees in most of Nigeria's 36 states by 2027.
Focus:
Enhancing the coconut value chain, including improved production, processing, and marketing.
Potential Benefits:
Increased exports, job creation, and higher incomes for farmers and processors.
Key Considerations for Coconut Farming in Nigeria:
Variety:
Using hybrid coconut trees, which offer higher yields, is recommended for commercial farming.
Seedlings:
Access to high-quality hybrid seedlings is crucial for successful cultivation.
Land Use:
Nigeria has a significant amount of land suitable for coconut cultivation, but only a small portion is currently being used.
Infrastructure:
Developing infrastructure for processing and marketing coconut products is important for realizing the full potential of the industry.
Technology:
Adopting improved production technologies and practices, including research and development, is essential for increasing productivity.
Sri Lanka is one of the countries reaping the rewards of this global demand. In 2022, the country exported over 71 million kilogrammes of fresh and dried coconuts, with the United States as one of its largest markets. Coconut products account for 12 per cent of Sri Lanka’s total agricultural exports, contributing significantly to its foreign exchange reserves.
In Nigeria, the market is projected to see continued growth, with a Compound Annual Growth Rate (CAGR) of 0.59% through 2028. However, challenges remain, including ensuring consistent coconut supply, addressing quality control, and navigating fluctuating prices.
Here's a more detailed look:
Market Dynamics:
Growing Demand:
The demand for coconut oil in Nigeria is rising, particularly for virgin coconut oil (VCO) due to its health benefits and use in various applications like food supplements, body moisturizers, and aromatherapy.
Production and Supply:
While Nigeria is a major coconut producer, the demand often exceeds domestic production, leading to reliance on imports from neighboring countries like Benin and Togo.
Price Fluctuations:
Coconut oil prices in Nigeria can fluctuate due to various factors, including market demand and inflation, leading to price increases, particularly during periods of high demand.
Key Drivers:
Health Awareness:
Consumers are increasingly aware of the health benefits of coconut oil, which is driving demand.
Versatility:
Coconut oil is used in various applications, making it a versatile product.
Natural and Organic Trend:
The increasing trend towards natural and organic products is also influencing market demand for coconut oil.
Challenges:
Consistent Supply:
Ensuring a consistent supply of coconuts for processing is a challenge, as production can be affected by weather and other factors.
Quality Control:
Maintaining quality control in oil extraction and processing is crucial to meet consumer expectations.
Competition:
Coconut oil faces competition from other vegetable oils, and fluctuating market prices can also pose challenges.
Future Trends:
Technological Advancements:
Advancements in oil extraction and production technologies could improve efficiency and reduce costs.
Agricultural Policy and Import Tariffs:
Changes in agricultural policies and import tariffs could impact market stability.
Uyai Virgin Coconut Oil
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