The market is already estimated at 2600 crores, but this is the unorganised segment that consists of coconut vendors selling from push carts.
As Indians are moving towards a more healthy and friendly lifestyle they are relying more on fresh and natural products. And, I am very proud to say that in 2016 alone there are numerous brands who have entered into the segment.
Especially when we talk about coconut water segment, the market is already estimated at 2600 crores, but this is the unorganised segment that consists of coconut vendors selling from push carts. And, the industry is expecting this market to grow considerably as packaged coconut water brings shelf life and portability benefits and therefore increases the footprint across the country where coconut water can be sold.
There is an increasing demand in packaged coconut water for a few reasons:
Consumption is already high: the unorganised sector sells over a billion tender coconuts each year as a beverage to Indian consumers. Hence, it is giving a way to organised players and retail giants to enter into the segment citing the potential that the segment offers.
Food safety is major concern: With magi issue breaking headlines in India, food safety has become a major concern after that. Not only people but government is also very active in meeting the parameters attached to food safety. There is increasing awareness about hygiene and food safety, and packaged coconut water is perceived to be safer than drinking straight from a cart.
Healthy is trendy: Health has become a buzz word and the health food and drink category has seen significant growth over the last few years. Consumers no longer select drinks purely based on the taste - health has become paramount in the decision making process. Drinks without any added sugar or preservatives are extremely difficult to find in the market and there is a palpable demand for such products.
It’s all about being natural: Coconut water in itself is one of the most nourishing, nutrient rich, hydrating liquids that you can find in the natural world. As awareness grows about the goodness of coconut water for health, beauty, concentration and a host of other health benefits, the demand has started to increase. Several brands have started entering this space because they believe, as we do, that coconut water will become the biggest beverage growth story over the next few years.
Therefore, with the opportunity that the segment offers we can see some good work happening in the sector.