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Africa’s Coconut Industry: Growth, Opportunities, and Market Potential

POSTED: 3rd Sep

There has been a constant and increasing demand for plant-based and natural products. The coconut sector has seen a consistent upsurge in production, largely due to the versatility of the fruit. While Africa may not yet rival Asian giants in global output, the East African region is not far behind and is steadily emerging as a key player.

2nd September being World Coconut Day, it is timely to spotlight Africa’s coconut industry, which has been experiencing a remarkable resurgence. Driven by rising global demand and the continent’s favourable agro-climatic conditions, the sector holds immense promise. This article explores the trends, market size, export potential, and growth forecast for coconut production in Africa.

 

A Global Industry on the Rise

Coconut is one of the world’s most valuable palms, with the global products market projected to reach $31.1 billion by 2026, driven by demand in food, beverages, cosmetics, and wellness. For African countries, this represents a key chance to grow exports and strengthen agricultural economies.

Yet the sector is often overlooked. The International Coconut Community (ICC), an intergovernmental body formed in 1969 and based in Jakarta, represents nearly 20 producing nations accounting for over 90% of global output. According to ICC data, the global industry was worth $4.5 billion in 2023 and is forecast to reach $7.2 billion by 2028, with nearly 10% annual growth. Kenya remains the only African member, despite significant production in Mozambique, Tanzania, Ghana, and Côte d’Ivoire.

 

East Africa’s Position

Kenya contributes about 68,000 tonnes annually, according to the ICC. In comparison, Tanzania produces over 479,000 tonnes (2022, World Population Review), placing it among the world’s top 15 producers. Mozambique also continues to expand its industry, producing over 245,000 tonnes annually, supported by investments in coconut oil, copra, and value-added products such as soaps.

These figures highlight East Africa’s growing role in global supply and its potential to scale with targeted investments.

 

Processing Landscape

Global demand for coconut products continues to grow, fueled by their versatility, health benefits, and wide applications. Africa’s coconut industry is well-positioned to meet this demand, supplying both fresh coconuts and processed products such as oil, milk, desiccated coconut, and water.

Unripe coconuts are widely enjoyed as a refreshing natural drink in coastal regions, while coconut flour and desiccated coconut are increasingly used as gluten-free alternatives in baking and food manufacturing. Coconut cream is also on the rise—valued at $2.92 billion in 2023 and projected to reach $4.67 billion by 2030—driven by the global appetite for natural and healthy ingredients.

Coconut’s appeal lies in its diversity. From water, milk, and cream to virgin and refined oils, coconut products align perfectly with plant-based and wellness-driven dietary trends. Beyond nutrition, they are also sought after in functional foods, cosmetics, and wellness products, giving them broad and growing market relevance.

 

Circular Economy and By-Product Utilization

Coconuts are also central to circular economy models, as every part of the fruit can be put to use:

  • Husks → processed into coir fibre for ropes, mats, and packaging.
  • Shells → repurposed into activated carbon, fuel, or craft material.
  • Copra meal → used for animal feed.
  • Coconut flour → supports gluten-free food markets.

Additionally, coconut trees themselves are highly sustainable, producing harvests three to four times a year and living for decades.

Seizing the Coconut Opportunity

With strong export potential, growing investor interest, and room for value addition, Africa’s coconut sector is ripe for growth. Mozambique, for instance, recently attracted a US $4.8 million investment in a plant that processes 20,000 coconuts daily into oil, milk, water, fibre, and copra (Food Business Africa).

Governments are also stepping in through cooperatives, R&D, and national development plans. To unlock full potential, Africa must scale processing infrastructure, strengthen market linkages, and empower farmers. Public-private partnerships, regional trade, and positioning African coconuts as organic and sustainable will boost global competitiveness.

👉 For a deeper dive, read more on [policies driving sustainable coconut production in Africa]

Conclusion: World Coconut Day as a Call to Action

The World Coconut Day reminds us that coconuts are more than a tropical fruit—they’re a path to economic growth, sustainability, and innovation. For East Africa, the opportunity lies in expanding processing capacity, driving value addition, and adopting circular economy models to transform local harvests into global impact.

 

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