Coconut Market Challenges Likely to Persist in 2025

As we step into 2025, the coconut market is feeling the heat from raw material shortages and rising prices. The main culprit? Unfavorable weather conditions.

Coconut-producing nations are struggling to maintain their raw nut supplies. Stocks in Indonesia and Vietnam have dropped drastically, now at just 10–20% of their usual levels. In Sri Lanka, prices have hit record highs due to a mix of strong local demand and limited availability. Adding to the pressure, China and Thailand have been purchasing more coconuts from these countries, tightening the supply further.

Rising Prices and Unmet Orders

With shortages deepening, prices for raw coconuts and products like desiccated coconut continue to climb. In the Philippines, many factories are unable to fulfill immediate orders and are focusing on deliveries scheduled for later in the year.

Ongoing Supply Chain Issues

The global supply chain is still under strain, with low raw material availability and shipping delays causing shortages in key markets like Europe, the USA, and the Middle East. The Ramadan season has led to a seasonal spike in demand across the Middle East and North Africa, adding even more stress to an already tight market.

Weather Challenges Add to the Crisis

While the Philippines is almost done with its typhoon season, the ongoing La Niña pattern continues to wreak havoc. Heavy rains and flooding are delaying coconut harvests and slowing down recovery efforts. Experts believe these weather-related challenges will drag on well into the year, prolonging the supply issues.

A Tough Year for the Coconut Market

The first half of 2025 is expected to be tough, with shortages and price hikes dominating the coconut market. We’re unlikely to see significant improvements in supply until midyear. Businesses are advised to plan ahead, forecast their needs carefully, and secure stock early to avoid any disruptions.





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