iTi releases findings on coconut water market

COCONUT water is one of the healthiest natural products available, with only about 36 calories per 8 ounces.  According to iTi Tropicals (iTi), a US-based importer of coconut water from countries like the Philippines, Indonesia and Thailand, many consumers may not be aware that the product, which is sold as a natural drink and as an ingredient for other drinks, comes in two categories: with added sugars and no added sugars. The company’s recent market research notes that the with added sugar category accounts for 75% of the market. The major brands include Vita Coco and Goya. Unsweetened coconut water, which accounts for the remainder, is led by Coco Libre, Naked, Purity Organics, Zico, and Zola. 

But even as the unsweetened category is small, it has much potential for growth, said iTi, since interest in pure and sugar-free coconut water is strong, not only as a beverage but as a low-caloric add-on to other products.

However, for this category to develop further, suppliers have to be transparent about the sugar content, if any, in their products. Complying with proper labelling will help consumers make the distinction.

Undeclared sugars a blow to industry

Part of why iTi conducted the research is to find out  the prevalence of undeclared sugars in coconut water products. It said that about 15% of products fail to declare sugar content, as confirmed by Krueger Food Laboratories, the juice authenticity laboratory commissioned by iTi.

iTi identified 12 canned and bottled brands packed in Thailand that contain undeclared added sugars.  The practice of adding sugars serves to mask the taste of the naturally occurring minerals in pure coconut water; sometimes it is even done to replace the coconut water sugars. Needless to say, this practice is hurting manufacturers, including iTi, that market only pure coconut water, as well as those that comply with proper labelling. It also impacts consumer confidence on the industry. But the company hopes that through the results of its market research, brand owners will be more transparent about their products.

Add-on to juice blends

According to iTi, the no added sugar coconut water is showing strong potential as an ingredient in low-calorie juice blends.  To compare, an 8 oz. serving of coconut water has 36 calories as compared to 140 calories for grape, 113 calories for orange, and 150 calories for pomegranate. A half and half coconut water blend with any of these fruit juices could reduce the caloric content by 30-50% and the beverage could still be labelled as 100% juice.  Besides reducing calories, coconut water has the ability to reduce the viscosity of purees and yoghurts.