Non-traditional products to drive growth of local coconut industry
The University of Asia & the Pacific (UA&P) said the development of non-traditional products will save the Philippines’ struggling coconut industry.
Coconut production plays an important role in the economy of the Philippines, being the second largest coconut producing country in the world. In 2017, the Philippines produced 14 million tons, accounting for 23 percent of the total world production.
While the Philippines is only the second largest coconut producing country, it is the largest exporter of coconut products. The country exported a total value of US$2.3 billion in 2017.
UA&P said from the dominance of coconut oil as the main product for export, the market profile of the industry has shifted into a multi-product industry with non-traditional coconut products gaining popularity especially with the growing concern for health and wellness.
In its industry report entitled The Coconut Industry: Local & Global Perspectives, the think-tank said that while the industry has been dominated by traditional coconut products, particularly coconut oil and copra, there has been a ten percent decline in its share of total coconut exports.
UA&P noted, meanwhile, that the share of non-traditional exports, which includes coconut water, milk, milk powder, cream, etc., has increased.
This was driven by the increasing global consumer preference for organic and healthy products, which is fueled mainly by coconut water.