Market Update 23rd December 2024

Desiccated Coconut Market Sees Growth in Prices and Export Demand

In mid-December, the global market for desiccated coconut remained strong, with export prices rising to between 80 and 150 cents per pound FOB, up from the previous week’s range of 80 to 140 cents per pound.

This increase reflects a robust international demand, particularly in the USA and Europe. Meanwhile, the domestic market in the Philippines saw a slight price decline, with desiccated coconut trading between P5,237 and P5,528 per 100-pound bag. This suggests short-term adjustments in local supply dynamics.

Philippine Export Performance in 2024

Despite facing supply challenges, the Philippine desiccated coconut sector demonstrated resilience throughout 2024. Exports totalled 114,950 metric tons from January to December, representing a 26.4% decline compared to the previous year.

Revenue from desiccated coconut exports was $185.6 million, reflecting a 24.9% year-on-year drop. Key export destinations, including the USA, Netherlands, and China, continued to drive demand, maintaining the product’s prominence among Philippine coconut-based exports.

Global Trends and Competition

On the international stage, prices for desiccated coconut have remained competitive, driven by its widespread use as a plant-based ingredient. However, the sector is encountering increased competition from other tropical oil-producing countries, as well as supply chain challenges.

Outlook for 2025

There are several challenges anticipated for 2025. Closing a major production facility in Davao may result in long-term shortages. Additionally, the quality of raw coconut is currently lower due to dry weather. However, recent rainfall should improve the quality size and production volumes.

We may see price increases into Q2 off the back of the shortages.

Contact us for prices and availability.