PROCOMER identifies opportunities for the export of coconut by-products

• The coconut water market projects a growth of 10% per year between 2020 and 2026.

According to the study, “Marketing opportunities for coconut and its by products”, carried out by the Costa Rican Foreign Trade Promoter, Costa Rica could have the opportunity to trade coconut water in the long term.

The investigation describes the characteristics of the international commercialization of coconut and by-products, and the segment with the greatest economic potential for Costa Rica is determined. As a result of the study, of the two main markets, oil and water, coconut water stood out as a by-product with the greatest potential, due to the dynamism and growth of the category, for which a growth in sales of 10% per year is projected between 2020 and 2026.

However, to successfully achieve the internationalization of this product it is necessary for national producers to overcome barriers such as:

• Organize, group, professionalize and, when possible, introduce technology: currently there are many small producers in need of technical assistance for pest management, good practices for post-harvest management and productivity.
• Increase production volume: there are reports on shortages of raw materials, indicating failure to meet the demand.
• Research and investment: it is important that producers invest in these two processes to guarantee shelf life, without losing properties, and for proper processing.
• Discover a market niche for artisanal water: it is important to do this to be able to export with an added value, and a better return on investment, avoiding competing in a market with low prices, typical of large Asian producers and commercial partners of large brands of commercial beverages.

So far in 2020, world sales of coconut and its by-products are valued at $ 11.6 billion US dollars, with expectations of an annual growth of 10% between 2020 and 2026. For its part, world sales of water, as a prominent product according to the study, are valued at $ 2,737 million US dollars for 2020, with North America (37% of the total) as its main market.

In Costa Rica, the export of coconut and coconut by-products is limited, reaching a value of $ 1.7 million US dollars in 2019 . In the category of fresh coconuts, with dry coconuts being the main product, it is where the greatest export experience and the greatest number of related companies are concentrated.

Marta Esquivel, Director of Commercial Intelligence at PROCOMER explained that while, “coconut water has a smaller market size than oil, for example, it is a product that projects increased dynamism for the coming years. Furthermore, Costa Rica could take advantage of its proximity to North America and the tariff conditions in the United States and Canada to begin to gain ground as an exporter.”

Para posicionar la oferta nacional en mercados internacionales se recomienda valerse además de dinamizadores de consumo como la preferencia de los consumidores por bebidas naturales, el posicionamiento del agua de coco como hidratante natural y bebida funcional y, la mayor conciencia por el consumo de aguas de alta calidad.

To position the national offer in international markets, it is recommended to use, in addition to consumer stimulators such as the preference for natural drinks, the positioning of coconut water as a natural moisturizer and functional drink and greater awareness for the consumption of high quality water.

Coconut is a non-traditional product and is currently characterized in Costa Rica as a low tech product. According to data obtained from the Ministry of Agriculture and Livestock, coconut plantations cover some one thousand hectares, primarily in the Huetar Caribe region.