Technavio CW Market Research

GLOBAL COCONUT WATER MARKET
2015-2019
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TECHNAVIO.COM GLOBAL COCONUT WATER MARKET 2015-2019 2

Table of contents
PART 01: Executive summary 5

Highlights 5
PART 02: Scope of the report 6

Market overview 6
Offerings of the top vendors 7
PART 03: Market research methodology 8

Research methodology 8
Economic indicators 8
PART 04: Introduction 9

Key market highlights 9
PART 05: Market landscape 12

Largest coconut producing countries 12
Market size and forecast 13
Five forces analysis 15
PART 06: Market segmentation by product type 16

PART 07: Market segmentation by distribution channel 18
PART 08: Geographical segmentation 19
Global coconut water market geographical
segmentation 19
Coconut water market in Americas 20
Coconut water market in EMEA 21
Coconut water market in APAC 22
PART 09: Key leading countries 23

PART 10: Market drivers 27
PART 11: Impact of drivers 30
PART 12: Market challenges 32
PART 13: Impact of drivers and challenges 34
PART 14: Market trends 35
PART 15: Vendor landscape 37
Competitive scenario 37
PART 16: Key vendor analysis 44

Coca-Cola 44
PepsiCo 47
Vita Coco 51
PART 17: Appendix 56

List of abbreviations 56
PART 18: Explore Technavio 57
``

List of exhibits
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2014 MARKET SIZE 2019 MARKET SIZE
$1.36 $4.19
BILLION BILLION
PART 01:
2015 MARKET GROWTH RATE 2019 MARKET GROWTH RATE
Executive
summary 22.06% 28.13%
2014 MARKET SIZE 2019 MARKET SIZE
112.3 276.6
MILLION GALLONS MILLION GALLONS
2015 MARKET GROWTH RATE 2019 MARKET GROWTH RATE
19.40% 20.09%
Highlights
Coconut water is a new-found soft drink in many countries and is even competing
with mainstream soft drink categories such as CSDs and sports drinks globally.
The high CAGR of 25.24% during 2014-2019 illustrates that coconut water could
be the next big thing in the global beverages market.
Growing health consciousness among consumers worldwide is the main driving

factor behind the growth of the market.
TECHNAVIO.COM GLOBAL COCONUT WATER MARKET 5

Market overview
This report covers the present scenario and growth prospects of the global coconut
water market for the period 2015-2019. The report also covers the segmentation of the
global coconut water market. The market size and forecasts provided in this report are
calculated based on the following criteria of packaged coconut water:
Revenue measured in $ terms
Volume measured in gallons

PART 02:
In terms of product category, the market size is calculated based on the following two
Scope of
categories:
the report
Sweetened coconut water
Unsweetened coconut water

For the purpose of the study, sales of packaged coconut water from the following
geographies were considered:
Americas: US, Canada, Brazil, Mexico, Peru, Colombia, Argentina, and Venezuela
EMEA: Austria, Belgium, Denmark, France, Finland, Germany, Greece, Italy,

Netherlands, Norway, Poland, Romania, Russia, Saudi Arabia, South Africa, Spain,
Sweden, the UAE, and the UK
APAC: Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New
Zealand, Philippines, Singapore, South Korea, Thailand, and Vietnam
The report also discusses the key distribution channels through which coconut water
sales occur globally. They include:
Hypermarkets and supermarkets
Convenience stores
Specialist retailers
Other (vending machines, gas stations, cash and carry retailers, online retailers
and other independent retailers).
In addition, the report presents the vendor landscape and a corresponding detailed
analysis of the top three vendors in the market in 2014. It also discusses the major
drivers that influence the growth of the market. In addition, it summarizes the
challenges faced by the vendors and the market at large, as well as the key trends that
are emerging in the market.

Offerings of the top vendors
Some of the products offered by the major vendors in the global coconut water market
are listed below.
Product offerings
Company Products offered
Zico Original
Coca-Cola (Zico) Zico Chocolate
Zico Latte
O.N.E. pure coconut water
O.N.E. coconut water with

tea
O.N.E. coconut water

PepsiCo (O.N.E.)
beverage with a splash of
mango
O.N.E. coconut water

beverage with a splash of
pineapple
Vita Coco pure coconut

water
Vita Coco
Vita Coco café latte
Vita Coco Kids

Research methodology
This Technavio report is based on the synthesis, analysis, and interpretation of
information about the global coconut water market 2015-2019 collected from
specialized sources. Technavio analysts have derived insights using a mix of primary
and secondary research with the aim of providing a holistic picture of the market.
PART 03:
Market research
methodology Primary research Secondary research
• Vendor briefings • Proprietary tools and databases
• Interviews with industry experts • Company reports and publications
and centers of influence • Webinars and podcasts
• Telephone and online surveys • Industry journals and publications
Qualitative analysis Quantitative analysis

• Drivers, challenges, and trends • Market size and market share
• Vendor analysis • Statistical models
Top-down approach Bottom-up approach
Economic indicators
Technavio has conducted a detailed study of global economic conditions and other
economic indicators to assess their impact on the condition of the global coconut water
market 2015-2019 and to make informed predictions about future market scenarios.
Microeconomic Mesoeconomic Macroeconomic Data collection

indicators indicators indicators and analysis

Key market highlights
Key customer segments Key market drivers
Growing health consciousness

among consumers
Individual consumers
Positioning of coconut water as a

PART 04:
natural sports drink
Introduction
Celebrity endorsements
Key market challenges

Investments by major soft drink
companies
Increase in number of product

launches
Sourcing of tender coconuts
Key market trends
Innovative packaging
Emergence of maple water

Ethical consumerism - a new
emerging trend
False claims by certain vendors Growing popularity of coconut

water in food service channels
High prices of coconut water Presence of large number of

untapped markets
Coconut water is a clear liquid extracted from unripe (green) coconuts. It is technically
a fruit juice and is a popular drink among consumers in tropical countries. In countries
such as India, Sri Lanka, and Thailand, the juice is commonly sold fresh by street

vendors. A tender coconut is one which is 6-8 months old. Packaged coconut water is
prepared by extracting liquid from selected tender fresh coconuts untouched by hand
and put through a special process and then packaged in food grade cans, PET bottles,
or cartons. Packaged coconut water usually has a shelf life of 9 to 18 months
depending on the brand. Coconut water is marketed as being the perfect natural
energy drink and having a lot of health benefits. Coconut water is rich in electrolytes
which are required by the human body. The common electrolytes found in coconut
water are:
Bicarbonate
Calcium
Chloride
Magnesium
Phosphorous
Potassium
Sodium
Potassium is one of the most important electrolytes required by the body. The main
functions of potassium include the regulation of fluids and mineral balance in the cells,
maintaining blood pressure, and transmission of nerve impulses and muscle functions.
Coconut water has been called the fluid of life and the natives of the Hawaiian islands
call coconut water dew from the heavens. Coconut water is a natural rehydrating fluid,
rehydrating body fluids much better than sports drinks.
Because coconut water is consumed fresh in tropical countries such as India,

Indonesia, Philippines, and Sri Lanka, packaged coconut water has not made much
inroads in these countries. Packaged coconut water is popular in western countries
such as the US, UK, and Brazil. The US is the largest market for packaged coconut
water in terms of consumption both by revenue and volume. The increasing health
consciousness among consumers has been driving the growth of the coconut water
market for the past five years, from 2009 to 2014.
Until recently it was not easy to package and store coconut water. Coconut water, once
exposed to air, will begin to ferment and will gradually lose its nutritional
characteristics. But the advent of new packaging technologies such as high pressure
packaging (HPP) have made it possible to package and store coconut water for a
longer period of time. The packaged product is subjected to very high pressure to kill
any bacteria present after packaging.

The APAC region is the largest producer of coconuts. Coconut is a source of many
other useful products other than coconut water such as coconut milk, coconut oil, and
coconut coir.
The new trend in the global coconut water industry is the emergence of flavored
coconut water. Now the global coconut water vendors are coming up with new flavors
in packaged coconut water such as pineapple, lemon, orange, mango, and chocolate.
Also celebrities such as Madonna and Rihanna are increasingly endorsing the coconut
water brands.

Largest coconut producing countries
Almost 90% of the global production of coconuts is contributed by the top five
countries. Initially coconut water companies in the US sourced their coconuts from
Brazil. But gradually the demand increased and supply was not able to meet demand.
Hence the companies started to source their coconuts from the APAC region. Most of
the coconut groves in the APAC region consist of coconut trees which are more than
50 years old. The most useful period of coconut trees is between 10 and 30 years.
Thus, over the coming few years, the world may face an acute shortage of tender
PART 05:
coconuts, which would become a hindrance to the growth of the market.
Market
landscape Leading countries by coconut production 2012 (million metric tons)
20
18
16
14
12
10
2
18.0 15.9 10.6 2.9 2.0
0
Indonesia Philippines India Brazil Sri Lanka
Source: Technavio, 2015

Market size and forecast
By revenue
The global coconut water market was valued at $1.36 billion in 2014. It is expected to
reach $4.19 billion by 2019, growing at a CAGR of 25.24%.
Global coconut water market 2014-2019 ($ billions)
5 28.13% 30%
26.74%
25.24%
24.10%
22.06% 25%
4 21.43%
20%
3
15%
2
10%
1
5%
1.36 1.66 2.06 2.58 3.27 4.19
0 0%
2014 2015 2016 2017 2018 2019
Revenue Growth rate
The global coconut water market is a niche segment in the global soft drinks market.
The coconut water market has been enjoying a rapid growth rate over the past few
years and the trend is expected to continue during the forecast period. The US is the
largest market for packaged coconut water, followed by the UK and Brazil.
Increasing health consciousness among consumers is driving the sales of natural

drinks such as coconut water. Vendors are coming up with innovative products like
flavored coconut water to encourage consumers to switch to these drinks.
By volume
Consumption in the global coconut water market was estimated at 112.35 million
gallons in 2014. It is expected to reach 276.65 million gallons by 2019, growing at a
CAGR of 19.75%.

Global coconut water market 2014-2019 (million gallons)
300 21%
240 19.93% 20.09%

19.74% 20%
19.58%
19.40%
180
18.95%
19%
120
18%
60
112.35 134.15 160.41 192.08 230.37 276.65

0 17%
2014 2015 2016 2017 2018 2019
Volume Growth rate
Consumption in the global coconut water market is expected to enjoy steady growth
during the forecast period. The popularity of coconut water is increasing because of its
nutritional benefits. Coconut water is a good natural energy drink. It replenishes body
fluids much better than sports drinks.
Coconut water contains some of the most important electrolytes essential for our body
such as potassium and sodium. Growth in knowledge of the potential harmful effects of
high-sugar drinks such as carbonated soft drinks is also driving the consumption of
coconut water. In tropical countries coconut water is consumed fresh from tender
coconuts. It is widely sold by street vendors. Packaged coconut water is more popular
in western countries such as the US, UK, and Brazil.

Five forces analysis
Five forces analysis
Bargaining power of suppliers

Low
The main suppliers to the global

coconut water market vendors are
bottling equipment manufacturers
and secondary packaging suppliers.
Due to the presence of a large
number of such players in the market
the bargaining power of suppliers is
low.
Threat of substitutes Threat of rivalry Bargaining power of

High High buyers
High
Coconut water has many The market is growing at a rapid

substitutes like bottled rate and the presence of a large The market is now flooded with
water, maple water, diet number of untapped markets a large number of coconut water
soft drinks, sugar-free fruit makes it even more attractive. products. Buyers have many
and vegetable juices, RTD Hence vendors will compete options to choose from, keeping
coffee and teas etc. Hence more aggressively to gain more the bargaining power high.
the threat of substitutes is market share. Hence the threat
very high. of rivalry is high.
Threat of new entrants

Moderate
The global coconut water market is a

niche segment and is growing
rapidly. It is easy to enter the market
but it would take huge capital
investments to make an impact in
the market. Hence the threat of
entrants is relatively moderate.

In terms of product type the market was dominated by sweetened coconut water in
2014, with unsweetened coconut water holding a lower market share: 76-78% of
packaged coconut water products in the market were sweetened with artificial
sweeteners, with 24-26% products containing no artificial sweeteners. As consumers
are looking for natural products with low sugar the unsweetened coconut water market
is set to grow.
Product segmentation 2014
PART 06: 2014

Market
segmentation by
product type 25%
Unsweetened
Sweetened
75%
Global coconut water sales = 112.35 millions of gallons
Companies should properly label their products as to whether they are sweetened or
unsweetened so the consumers can distinguish between them. Vita Coco is the market
leader in the sweetened coconut water segment.
Unsweetened coconut water

The global unsweetened coconut water market saw volume sales of 28.09 million
gallons in 2014 and is expected to grow at a CAGR of 22.02% to reach 75.99 million
gallons by 2019.

Global unsweetened coconut water market 2014-2019 (millions of gallons)
80 22.6%
22.37%
70
22.22%
60 22.2%
21.99%
50 21.89%
40 21.64% 21.8%
30
21.34%
20 21.4%
10
28.09 34.17 41.65 50.81 62.10 75.99
0 21.0%
2014 2015 2016 2017 2018 2019
Revenue Growth rate
Sweetened coconut water

Global sweetened coconut water market 2014-2019 (millions of gallons)
200 19.25% 19.5%

19.11%
18.95%
160 18.78% 19.0%
18.66%
18.58%
120 18.5%
80 18.0%
40 17.5%
84.26 99.98 118.76 141.27 168.27 200.66

0 17.0%
2014 2015 2016 2017 2018 2019
Revenue Growth rate
The global sweetened coconut water market saw volume sales of 84.26 million gallons
in 2014 and is expected to grow at a CAGR of 18.95% to reach 200.66 million gallons
by 2019.

In terms of distribution channel, coconut water was dominated by conventional
distribution channels such as supermarkets and convenience stores, followed by
specialist retailers selling natural foods and beverages. Other channels include
vending machines, gas stations, cash and carry retailers, online retailers and other
independent retailers.
Global coconut water market by distribution channel 2014
2014
PART 07:
Market
segmentation by 10.49%
Hypermarkets and
supermarkets
distribution
Convenience stores
channel 19.67%
48.54%
Specialist retailers
21.30% Other
Global coconut water sales = $1.36 billions
Coconut water sales in convenience stores is growing more quickly than expected. For
example in the US in some of New York's convenience stores coconut water is
outpacing the sales of milk and other beverages signifying the prominence of the
channel. Online sales of coconut water are very low when compared to the
conventional retail channels. Online channels however are gaining in popularity in
growing markets like APAC and EMEA, although in 2014 online channel sales were
more predominant in the Americas region.

Global coconut water market geographical segmentation
In 2014 the global coconut water market was dominated by the Americas. It was
followed by EMEA. The largest market in the Americas in terms of consumption was
the US. In the EMEA region the biggest market in terms of consumption was the UK.
Global coconut water market by geographic segmentation by revenue 2014
100%
90%
PART 08:
80%
Geographical 70%
segmentation 60%
50%
40%
30%
20%
10%
0%
2014 2015 2016 2017 2018 2019
APAC 19.54% 19.63% 19.73% 19.78% 19.74% 19.75%
Europe 21.98% 21.99% 21.91% 21.85% 21.77% 21.68%
Americas 58.48% 58.38% 58.36% 58.37% 58.48% 58.57%
In the forecast period, the global coconut water market is expected to grow rapidly. The
market share of APAC and EMEA will grow at a high CAGR during the forecast period
because of the presence of untapped potential for packaged coconut water in these
markets. The main driver of the rapid growth of the global coconut water market is the
perceived health benefits associated with coconut water. The entry of new players into
the market will also contribute to the growth of the market.

Coconut water market in Americas

The coconut water market in the Americas was valued at $795.80 million in 2014. It is
expected to reach $2,457.86 million in 2019, growing at a CAGR of 25.30%.
Coconut water market in Americas ($ millions)
2,500 28.29% 30%

26.91%
25.39%
23.84%
22.16% 25%
2,000 21.46%
20%
1,500
15%
1,000
10%
500
5%
795.80 972.16 1,203.97 1,509.61 1,915.90 2,457.86

0 0%
2014 2015 2016 2017 2018 2019
Revenue Growth rate
The US is the largest market in terms of consumption in the coconut water market in
the Americas. The second largest market in terms of consumption is Brazil. The most
prominent among the growth drivers of the market is growing health consciousness
among consumers. Consumers are now moving away from high-sugar carbonated soft
drinks to more natural drinks such as coconut water. New product introductions by the
vendors such as flavored coconut water and other innovative products are also acting
as drivers of the growth of the market.

Coconut water market in EMEA

The coconut water market in EMEA was valued at $299.15 million in 2014. It is
expected to reach $909.78 million by 2019, growing at a CAGR of 24.91%.
Coconut water market in EMEA ($ millions)
1,000 27.54% 30%

26.25%
900 25.02%
23.44% 25%
800 22.40%
21.23%
700
20%
600
500 15%
400
10%
300
200
5%
100
299.15 366.15 451.96 565.02 713.35 909.78
0 0%
2014 2015 2016 2017 2018 2019
Revenue Growth rate
The coconut water market in EMEA had a market share of 21.98% in 2014 and is
expected to enjoy a steady growth rate during the forecast period. The UK is the
largest market in terms of consumption in the coconut water market in EMEA.
The entry of global vendors like Vita Coco and the emergence of several regional
vendors is acting as a driver for the growth of the market. In the UK for instance the
main competitor for Vita Coco is Green Coco, which is a regional player. The
introduction of coconut water in new innovative packaging which will enable it to be
stored for a longer period is acting as a further driver for the growth of the market.

Coconut water market in APAC

The coconut water market in APAC was valued at $265.88 million in 2014. It is
expected to reach $828.61 million by 2019, growing at a CAGR of 25.53%.
Coconut water market in APAC 2014-2019 ($ millions)
The coconut water market in APAC had a market share of 19.54% in 2014. Packaged
coconut water is relatively new to the coconut water market in APAC, where coconut
water is usually consumed fresh. APAC is the largest producer of coconuts in the
world. Almost 90% of the world's coconut is produced in APAC.
Packaged coconut water has huge potential for growth in the coconut water market in
APAC. Global vendors are now realizing the potential of this region and are entering
the market with their products.

Key leading countries by revenue
PART 09:
Key leading
countries
US - 45.1%
UK - 11.5%
Brazil - 10.4%
The US is the largest market for coconut water followed by the UK and Brazil. India
and China are growing markets for coconut water and hold great potential for
packaged coconut water. In India and China the changing economic and social
conditions are paving the way for the success of packaged coconut water.
US
Packaged coconut water was introduced for the first time in the US market in 2004.
The market has displayed immense growth since 2009 growing at a CAGR of over
40%. The coconut water market in the US is dominated by three players, namely Vita
Coco, PepsiCo (Kero Coco and O.N.E.), and Coca-Cola (Zico).

Coconut water market in US 2014-2019 ($ millions)
2,100 28%
1,800 27.15%
27.02%
26.81%
27%
1,500
26.41%
26.11%
1,200
25.77% 26%
900
600
25%
300
612.5 778.0 986.6 1,247.2 1,572.9 1,978.2
0 24%
2014 2015 2016 2017 2018 2019
Revenue Growth rate
Growing health consciousness and the positioning of coconut water as a natural sports
drink is driving the sales in the country.
The main challenge faced by the coconut water market in the US is the shortage in
supply of fresh tender coconuts. As the US imports most of its coconuts from the South
Asian countries, the lower production rate is negatively affecting the demand.
The majority of the sales of coconut water products are through convenience stores
and supermarkets. The presence of a strong retail network can be attributed as the
reason for this trend. The sale through channels such as wholefood stores is also
increasing. Online retailing of coconut water is also slowly picking up thanks to a strong
e-commerce market in the US. Target, Costco, Safeway, and Walmart among others
offer various coconut water products online. Although sweetened water is the preferred
coconut water for consumers in the US, accounting for 74% of sales in 2014,
unsweetened water is slowly gaining prominence owing to its natural properties. In
terms of number of new launches in 2014, the unflavored segment dominated with
32.3%, followed by the flavored ones.

New flavor launches 2014
2014
32.3%
4.1% 3.5% 3.4% 2.8%
Unflavored Pineapple Green tea Mango Orange
UK
As of 2014 there were 39 brands of coconut water available in the UK. Vita Coco is the
fastest growing coconut water brand in the UK. Vita Coco is the market leader with
over a 70% market share. Most of the sales of coconut water in the UK were through
supermarkets in 2014. For instance almost 75% of the total sales of Vita Coco in the
UK are through supermarkets.
Coconut water market in UK 2015-2019 ($ millions)
650 32.6% 33%
31.9%
31.6% 32%
520
31.3%
31%
30.5%
390 30.2%
30%
260
29%
130
28%
156.2 203.8 267.5 352.0 464.3 615.9

0 27%
2014 2015 2016 2017 2018 2019
Volume Growth rate

Companies in the UK are also investing in advertising and brand building to increase
their market share. Vita Coco came out with a new advertising campaign titled
“Stupidly Simple” which simplifies the message of coconut water to that of a natural,
refreshing beverage. The company has also come up with various catchy taglines to
grab the attention of consumers.
The coconut water market in the UK is still a niche segment which holds huge potential
for growth. Most of the consumers in the UK consume coconut water as a functional
drink.
Brazil
The coconut water market in Brazil is one of the fastest growing markets in Latin
America. Coconut water is popular in Brazil because of its flavor and the associated
health benefits. Increasing health consciousness among consumers is driving
consumers away from carbonated soft drinks to other healthy alternatives such as
coconut water. The coconut water market in Brazil is led by Kero Coco and Ducoco.
Coconut water market in Brazil 2014-2019 ($ millions)
250 14%
13.74%
13.54%
200
13.29% 14%
150
12.93%
13%
12.71%
100
12.57%
13%
50
135.30 152.50 172.21 195.10 221.52 251.96

0 12%
2014 2015 2016 2017 2018 2019
Revenue Growth rate
Coconut water is priced higher than other beverage alternatives available in the market
and hence the volume sales of coconut water are lower compared to other alternatives.
The Olympic Games 2016 to be held in Brazil is expected to boost the sales of coconut
water as there will be a large inflow of tourists. Coconut water brands are primarily sold
through supermarkets and convenience stores. However, sales are also increasing
through consumer foodservice channels such as McDonald’s and Pizza Hut.

Some of the key drivers which are helping in the growth of the global coconut water
market are listed below:
Growing health consciousness among consumers
Positioning of coconut water as a natural sports drink
PART 10:
Market drivers
Investments by major soft drink companies
Increase in number of product launches
Growing health consciousness among consumers

The health benefit that coconut water offers has become an important factor that is
driving the sales of packaged coconut water globally. This trend is much more evident
in non-tropical countries where fresh coconut water is unavailable. Busy lifestyles,
rushed meals, and longer working hours are leading consumers worldwide to become
more health conscious and are motivating them to shift away from carbonated drinks
and other drinks such as juices and nectars that often contain high sugar and fat
content.
Coconut water has lately become a perfect alternative to those drinks. Coconut water
is a natural drink that is enriched with sodium, potassium, and electrolytes which are
essential requirements for a human body. It is marketed as being a perfect health drink
that can replenish the body fluids much better than sports drinks. Coconut water also
meets consumers' demand for drinks that are free from artificial flavors, sweeteners,
preservatives, additives, and gluten. Research studies have also indicated that coconut
water helps reduce blood pressure which is one more reason why there is increased
demand for packaged coconut water over other fruit drinks. Some of the other reputed
health benefits of coconut water are weight reduction, smooth skin, and easy digestion.

Positioning of coconut water as a natural sports drink
The positioning of coconut water as a healthy sports drink is one of the important
drivers of the global coconut water market. Studies have proven that coconut water
can replenish the fluid content lost from the body due to games and exercise in a better
way than many other forms of sports drink available in the market. Coconut water is a
natural energy drink rich in potassium, sodium, and other minerals such as calcium
and magnesium.
According to a study of the Journal of the International Society of Sports Nutrition,

coconut water helps in the rehydration of lost fluids post work-out. It greatly helps in
replenishing the electrolytes required for a body after vigorous exercise. Companies
such as Vita Coco and Zico greatly benefited after being among the first to market
coconut water as a natural sports drink. The strategy to position this plant-based
beverage as a natural sports drink and as a super hydrating liquid paid off well for them
as they saw sales increase by over 40% between 2012 and 2014. The immense
popularity of coconut water has also encouraged retailers such as convenience stores
and supermarkets to dedicate special shelves to coconut water brands alongside
sports drinks such as Gatorade and Powerade.
Endorsements by celebrities has been an important trend that emerged in the global
coconut water market between 2007 and 2013. Many leading Hollywood celebrities
and pop singers were spotted drinking coconut water which positively impacted the
growth of the market. Celebrities such as Madonna, Demi Moore, and Matthew
McConaughey did in fact invest in leading coconut water company Vita Coco after
which the sales of the company increased by over 200% from 2007 to 2009.
Coca-Cola's Zico was named the official beverage for the Sochi Olympic Winter
Games held in 2014. The company also made Olympic champion Julia Mancuso its
brand ambassador in 2013. Vita Coco also capitalized on the celebrity culture and
most recently partnered with baseball player Josh Hamilton to promote brand
awareness; it created a tropical-fruit-flavored coconut water with music artist Rihanna
in 2012. Endorsement by celebrities is giving a positive image to coconut water and
helping to showcase it as an on-trend health drink.
Investments by major soft drink companies

Coconut water is a niche segment in the global soft drinks market. However, it has
huge potential for growth over the forecast period. To tap into this potential growth
market, major soft drink companies such Coca-Cola, PepsiCo and Red Bull energy

drinks have made huge investments which is aiding in the growth of the market. In
2012, Coca-Cola acquired a majority stake in the Zico brand shortly after PepsiCo
invested in O.N.E. brand in 2009. Similarly, Red Bull China acquired a 25% stake in
Vita Coco in July 2014 to start distributing the brand in China. These three brands
together constitute approximately 60% of the market in revenue terms.
Increase in number of product launches

The global coconut water market is witnessing a large number of new product
launches which is benefiting the growth of the market. New product launches in the
global coconut water market quintupled during 2008-2012. North America dominated
the world market with 35% of launches in 2012, followed by Europe with 34%. In order
to stay competitive in the market and to take advantage of the rising demand for
coconut water, companies are coming up with innovative combinations such as iced
tea and coffee.
New product launches are also helping the market to make inroads into new markets
such as India, France, and Canada, which are growing at a rapid rate. The competition
is becoming intense in the market and companies are coming up with various new
product flavors to stay ahead of each other. Flavored coconut water with chocolate,
banana, lemon, pomegranate, lemonade, espresso coffee, and chili extract have been
introduced in the market and instantly became popular with consumers worldwide,
particularly in the US.

Impact of drivers
Drivers Impact on key customer

Category
Consumers
Growing health
conscious among
consumers 3
PART 11: Consumers
Impact of drivers Positioning of

coconut water as a
natural sports drink 4
Consumers
Celebrity
endorsements
3
Consumers
Investments by
major soft drinks
companies 3

Drivers Impact on key customer category
Consumers
Increase in number of
product launches
3
Investments by major
soft drinks companies

The global coconut water market faces a number of challenges which hinder the
growth of the market. Some of the serious challenges faced by the global coconut
water market are highlighted below:
PART 12:
Market Sourcing of Emergence of False claims by High prices of
tender coconuts maple water ctain vendors coconut water
challenges
Sourcing of tender coconuts

Sourcing of tender coconuts is one of the main challenges faced by the global coconut
water market. Initially the top three vendors in the market sourced their coconuts from
Brazil but gradually demand spiked and the supply was not able to meet the demand.
Hence they have shifted to Asia to source the coconuts from countries such as
Philippines, Indonesia, and India which were the largest coconut producers as of 2012.
Most of the coconut trees in the Asian region were planted during the late 1950s. The
productive period of a coconut tree is between 10 and 30 years. As 90% of world’s
coconut demand is met by the APAC region, the aging of coconut trees is posing a
serious challenge to the global coconut water market.
Emergence of maple water

The rise of maple water is one of the other challenges faced by the global coconut
water market. Maple water is a beverage consisting of raw sap from sugar maple trees.
Maple water has a high content of calcium, magnesium, and potassium. The maple
water segment is a huge untapped market which has high potential for growth,
especially in the US where coconut water emerged as a new growth market outpacing
even the more established categories such as CSDs and sports drinks. Maple water is
claimed to have a more hydrating effect than coconut water. Some of the companies
which have already started retailing in North America are Oviva, Maple3, Vertical

Water, Wahta, Happy Tree, and Sap on Tap. Maple water has already made its entry
in the Canadian and the US markets and companies have begun selling them in tetra
packs. Retailers in the US are also displaying maple water brands right next to coconut
water brands in the same aisles so as to increase their sales. In 2014, maple syrup
production reached 3.2 million gallons with Vermont, New York, and Maine leading the
chart with 41.7%, 17.2%, and 17.1% of the overall production, respectively.
False claims by certain vendors

Improper labelling and suspicions surrounding false claims by major vendors is a
serious challenge faced by the market. The false claims of super-hydration by certain
top vendors is posing a serious challenge to the growth of the market. Continued sales
with undeclared added sugars and other ingredients threatens consumer confidence
and creates confusion in their mind. Vita Coco for instance positioned its products as
super-hydrating, claiming that its products has almost 15 times more potassium
content than a sports drink. These claims about super-hydration were found to be false
and Vita Coco had to face law suits for false claims in 2012. Similarly, Zico is also
facing law suits for claiming that its products were natural whereas the products are
made from concentrates.
High price of coconut water products

Packaged coconut water is priced higher than other juice drinks. The high price of
coconut water is one of the challenges to the global coconut water market. The
coconut water producers have cited the health benefits of coconut water as the reason
for the high price of bottled coconut water. The average price of packaged coconut
water is around $6 which is much higher than, for example, a Gatorade sports drink.
The higher price of the raw materials and the cost of pasteurizing and packaging the
coconut water also adds to the price of packaged coconut water. The price of
packaged coconut water is much higher than that of bottled water which usually is
priced around $1.2 for a gallon.

Impact of drivers and challenges
Drivers Challenges
Growing health
High price of coconut
consciousness among
water products
consumers
4 3 2 1 0 0 1 2 3 4
PART 13:
Impact of drivers Positioning of coconut
water as a natural
Sourcing of tender
and challenges sports drink
coconuts
4 3 2 1 0 0 1 2 3 4
Emergence of maple
water
4 3 2 1 0 0 1 2 3 4
Investments by major False claims by certain

soft drinks companies vendors
4 3 2 1 0 0 1 2 3 4
Increase in number of High price of coconut

product launches water products
4 3 2 1 0 0 1 2 3 4
2015 2017 2019

The global coconut water market is witnessing the rise of certain trends in the market
which will help the market to grow in the forecast period. The trends emerging in the
market are listed below:
Ethical consumerism - a new emerging trend

PART 14:
Market trends
Growing popularity of coconut water in food service chains
Presence of large number of untapped markets
Innovation in packaging is one of the important tends being witnessed in the global
coconut water market. Companies are launching coconut water in tetra packs which
keep the product fresh and free from spoilage. Tetra Pak opened a knowledge center
in Singapore in 2012 to provide new innovative technologies to vendors in the global
coconut water market. Some companies are also selling coconut water in coconut-
shaped bottles. For instance Pearl Coconut water in the US is selling coconut water in
coconut-shaped bottles with an apt caption to go with it: “Same inside, out”. Jax Coco
has introduced a recyclable glass bottle for its coconut drink products.
Ethical consumerism - a new emerging trend

The demand for fairtrade and organic coconut water market has gained a lot of
prominence in the last few years, as companies such as O.N.E. in order to improve
their brand image have claimed their coconut water to be fairtrade and organic. Ethical
consumerism, trust, and product quality will be key issues over the forecast period that
will create increased demand. Consumers tend to associate fairtrade with quality, while
a growing numbers of consumers are interested in products made using sustainable
production methods. Some of the popular fairtrade and organic coconut water brands
are Coco Zumi, Da Naha, Harmless Harvest, and O.N.E. In 2014, Fair Trade USA, in
order to improve the lives of small-scale coconut farmers, launched fairtrade certified
coconut products into the global market. Fairtrade certification of coconut water brands

is significant since farmers in tropical countries in APAC such as Philippines where
most coconuts are produced are often paid little. Increasing ethical and health
concerns will influence consumers’ behavior.
Growing popularity of coconut water in foodservice chains

On-trade consumption of coconut water is relatively low when compared to the retail
channel sales. However, the trend is expected to change as many restaurants and
eateries in the US and other countries have begun to offer coconut water as a
mainstream drink on their menu. For instance, Kero Coco of PepsiCo is said to be the
highest selling beverage in McDonald's and Pizza Hut outlets in Brazil. Starbucks
launched the O.N.E. brand in its cafés around Ontario and British Columbia in Canada
in 2012 with good success. To catch up to this trend, the company also launched its in-
house brand of coconut water under the brand name Evolution Fresh in 2015. Coconut
water is featuring in many foodservice locations across North America and is expected
to replace other soda drinks as a mainstream drink.
Presence of large number of untapped markets

The global coconut market has huge growth potential due to the presence of a large
number of untapped markets. Non-tropical countries such as France, Canada, Mexico,
and China hold huge potential for growth for packaged coconut water. Unlike tropical
countries where coconut water is consumed fresh, consumers in these countries will
have to rely on packaged coconut water. The share of the unpackaged volume of
coconut water in India and China is also expected to slip over the coming few years,
paving the way for the growth of packaged versions. The ongoing demand for
functional wellness products in Japan will also be realized with the immense growth of
coconut water. We expect the Japan market to be valued at around $400 million by
2019. If the brands can raise awareness of the benefits of coconut water over normal
water they can make a huge impact on the untapped markets such as Japan, France,
and Canada.

Competitive scenario
The global coconut water market has grown from being a small segment of the global
soft drinks market to a market having huge growth potential. The packaged coconut
water concept was relatively new in almost all markets. A few vendors realized the
potential of packaged coconut water and they now dominate the market. In the initial
phase there were very few vendors in the market, but now their count has increased
with the number of vendors worldwide exceeding 250. Local players have come into
the market in certain geographies to take advantage of the growing popularity of
PART 15:
coconut water. But vendors who have been in the market from the initial phase have
Vendor the major share of the market. The low capital cost involved in setting up bottling plants
landscape for coconut water is attracting small-scale industries to the coconut water market.
Market share analysis 2014

Leading vendors by market share 2014
2014
8.0%
10.7% PepsiCo
42.3% Vita Coco
Coca Cola
Other
39.0%
Global coconut water sales = $1.36 billions
PepsiCo is the market leader in the global coconut water market in terms of revenue,
with a market share of 42.3%. The various brands offered by PepsiCo in the coconut
water market are Kero Coco, O.N.E., Tropicana Coco Quench, and Naked coconut
water. Kero Coco had a market share of 37.7% in 2014 while O.N.E. had a market
share of 4.6% for the same year. Tropicana Coco Quench is the first locally produced
coconut water to be offered in cartons in Philippines.
Vita Coco had a market share of 39.0% in terms of revenue in 2014. The various
products offered by Vita Coco are Vita Coco pure coconut water, Vita Coco café, Vita
Coco Kids and Vita Coco coconut water. Vita Coco pure coconut water is available in
various flavors including pineapple, lemonade, orange, peach, and mango. Vita Coco

Kids is offered in flavors such as cherry beach, apple island, and pink lemonade. In
July 2014, Vita Coco sold 25% of its stake to Red Bull China in a deal worth $665
million.
Coca-Cola had a market share of 10.7% in terms of revenue in the global coconut
water market in 2014. Zico is the coconut water brand offered by Coca-Cola in the
global coconut water market. The various products offered by Zico are Zico original,
Zico chocolate and Zico latte. The products are offered in various sizes of tetra pack,
330 milliliters, 414 milliliters, and 1 liter. Zico was acquired by Coca-Cola in November
2013.
Other prominent vendors
Company Description
The company is headquartered in Vancouver,

Washington, US. The company sources its
coconuts from Thailand. Products are offered in
Amy & Brian Naturals
various flavors such as cinnamon, grape, and lime.
Its products are offered in aluminum and steel
cans.
Based in Princeton, New Jersey, US, the company

manufactures juices in various flavors and offers its
products in three ranges: Bai5, Bai Bubbles, and
Bai Antiwater. The company's coconut water is
naturally sweetened and is infused with
antioxidants, has a low glycemic index, and is free
from gluten.
The company was founded in 2010. It offers

various flavors of coconut water such as passion
fruit, guava, mango, acai, and pomegranate. The
Blue Monkey Waters
coconuts are sourced from Indonesia, Philippines,
and Thailand. The product is offered in recyclable
cans rather than tetra packs.
Based in Nelson, New Zealand, the company is a

Bush Farm Trading Post manufacturer of fairtrade and organic coconut
Limited water. It sells its coconut water in BPA-free steel
cans that are 100% recyclable.

Company Description
Based in Riverwood, NSW, Australia, the company

makes coconut oil, coconut water, and coconut
water & coffee, sourcing its coconuts from
Philippines and Australia. The company claims all
C-Coconut Water its products are 100% certified organic and are free
from artificial flavors and concentrates. Its product
are available domestically and in international
markets such as New Zealand, North America, and
Japan.
C20 pure coconut water was founded in 2008 and

it is headquartered in Long Beach, California, US.
C20 Pure Coconut Water
The company produces and distributes natural
coconut water.
Founded in 2004, it is a company headquartered in

the UK. It is engaged in the production and
CHI Coconut Water distribution of coconut water, coconut milk, and
other coconut-based products such as espresso
coconut milk.
An Indian company headquartered in Bangalore.

CocoJal The company specializes in preserving and
packaging 100% natural coconut water.
The company is based in California, US and is

Coco Libre involved in the sales and distribution of coconut
water products.
Based in Brazil. It is involved in the production and

distribution of various coconut products such as
Ducoco coconut water, coconut milk, coconut oil, and
shredded coconut. The company has two brands,
Ducoco and Girl.

Company Description
The company introduced its first product in 1978.

The company supplies innovative and organic
vegetarian food products. The motto of the
Edward & Sons
company is "Convenience without compromise". Its
organic coconut water is North America's first
certified organic coconut water.
Based in Pittsburg, Pennsylvania, US, the

company is a leading specialty retailer of health
and wellness products. Phenom is a coconut water
GNC Holdings
brand of GNC that is enriched with vitamins and
minerals. The product is available in four varieties
and six flavors.
A company headquartered in Nuremberg,

Germany. The company is engaged in the
production, distribution, and export of organic
Green Coco
coconut water. The company’s products are
available in different flavors and packaging
formats.
Based in NSW, Australia, the company is in the

business of making coconut water and coconut oil.
H2COCO It sources coconuts from a tropical island in
Philippines and bottles it there to ensure the
product's freshness and taste.
A beverages company based in San Francisco,

Harmless Harvest California, US. It is involved in the production and
sales of coconut water and tea products.
Based in San Francisco, California, US, the

company bottles its coconut water by the HPP
INVO Coconut Water
method so as to retain its natural flavor and
electrolytes.

Company Description
ITI Tropicals Inc. is an independent company

headquartered in Lawrenceville, New Jersey, US. It
ITI Tropicals
is involved in the import of high-quality tropical and
exotic fruit purees and concentrates.
The company was established in 1989. It exports

its products to various places such as the US,
Africa, Middle East, the UK, and Australia. The
Frolic Foods company is based in Mumbai, India. Apart from
coconut water the company offers various other
products such as cocoa powder, jelly crystals, and
custard powder.
Jax Coco is a company headquartered in Hong

Kong. It is engaged in the production and
Jax Coco
distribution of natural coconut water. The company
expects to generate sales of $20 million in 2015.
Based in Monrovia, California, US, the company is

Naked Juice involved in the production and distribution of 100%
juice and juice smoothies.
Based in Eastgardens, NSW, Australia, the

company is engaged in the business of
Nudie manufacturing 100% fresh fruit and vegetable
juices. The coconut water brand was launched in
2010.
Organic Avenue is the leading provider of organic

Organic Avenue cold pressed juices, snacks, superfoods, and
natural beauty products.
Based in Northglenn, Colorado, US, the company

Pulse Beverage Corporation offers low-calorie natural drinks such as lemonade
and limeade, coconut water, and pineapple

Company Description
coconut water. It retails these products under the
brand name Natural Cabana. The company also
makes health drinks under the brand name
PULSE.
Based in the US, the company retails raw,

artisanal, cold pressed, and all-natural coconut
Pure Brazilian Coconut
water. The company spends a portion of its
Water
earnings from the sale of each bottle to save one
square foot of the Amazon rainforest.
Based in San Francisco, California, US, the

company makes different varieties of superjuice,
Purity Organic juice, tea, and coconut water for consumers in the
US. The company claims that all its products are
USDA certified organic.
Based in Australia, Raw C is engaged in the

production, packaging and distribution of 100%
natural coconut water sourced from young and
Raw C green coconuts with no added sugar or sodium.
The company sources all its young green coconuts
from Thailand and bottles its products in the same
place to guarantee the taste and freshness.
Based in California, US, the company was founded

in 2003 with a mission to provide the best tasting
beverages using Thailand's resources. The
Taste Nirvana International company sources its coconuts from Thailand. Apart
from coconut water the company offers various
other products such as ready-to-drink Thai coffee,
Thai teas and functional health drinks.
Temple Lifestyle Based in Canada, the company is engaged in the

manufacturing and distribution of natural food and

Company Description
beverages. Its coconut water is offered under the
brand name Thirsty Buddha.
Established in 1986, the company is one of the

leading manufacturers of food and beverage
Thai Agri Foods Public Co., products. It retails its coconut water under the
Ltd brand name FOCO. Vasinee Food Corp. is the
exclusive importer of the brand's 100% pure
coconut water in the US.
A Texas, US-based food supermarket chain which

specializes in organic foods. The first store was
Whole Foods Market IP. L.P. opened in 1980. It has operations in the US,
Canada, and the UK. As of January 2015 the
company had 420 stores in different locations.
Zola was founded in 2002. The company is

engaged in the production and distribution of
coconut water and acai juices. The product range
Zola
of Zola includes products such as coconut water
original, coconut water with espresso, coconut
water with pulp, and coconut water lemonade.
Based in London, UK, the company is engaged in

the business of making organic and fairtrade
Zumi Natural Ltd. (Coco
coconut water and coconut oil products. It is a
Zumi)
registered member of the Soil Association of the
UK.

Coca-Cola
Business overview
Coca-Cola was founded in 1886 and is headquartered in Atlanta, Georgia, US. The
company manufactures, distributes, and markets a variety of non-alcoholic beverages.
It sells 1.9 billion units of beverage every day in more than 200 countries. It sold 28.6
billion in 2014, 28.2 billion in 2013, and 27.7 billion unit cases of its products in 2012.
As of FY2014, the company employed 129,200 people.
PART 16:
Business segmentation
Key vendor Coca-Cola: Business segmentation
analysis
Eurasia and Africa
Europe
Business/Revenue
Segmentation
Latin America
North America
Asia Pacific
Bottling
investments
Corporate
The company engages in the business of non-alcoholic beverages. Its business

activities are classified into the following operating segments:
Eurasia and Africa; Europe; Latin America; and APAC: Manufacture and sell
beverage concentrates and syrups and finished beverages
North America: Sells finished beverages
Bottling investments: Include company-owned or consolidated bottling operations

outside North America
The company’s product offerings are classified into two categories:
Finished products: Offers finished products under two sub-categories, sparkling

beverages and still beverages. Its sparkling beverages portfolio includes non-
alcoholic ready-to-drink beverages with carbonation such as energy drinks,
carbonated waters and flavored waters; the still beverages portfolio includes non-
alcoholic beverages without carbonation including flavored and enhanced water,

juice drinks, ready-to-drink tea, coffee, and sports drinks. In FY2014, the company
generated 62% of its revenue from its finished products category
Beverage concentrates: Offers syrups, fountain syrups, and concentrates such as

flavoring ingredients and sweeteners to authorized bottling and canning operations.
In FY2014, the company generated 38% of its revenue from the beverage
concentrates category
Business segmentation by revenue 2014

Coca-Cola: Business segmentation by revenue 2014
Eurasia and Africa

6%
Latin America North America
10% 47%
Europe
11%
Asia Pacific
11%
Bottling
Investments
15%
Business segmentation by revenue 2013 and 2014

Coca-Cola: Business segmentation by revenue 2013 and 2014 ($ millions)
25,000
21,574 21,462
20,000
15,000
10,000 7,598 6,972

5,372 5,257 4,645 4,844 4,748 4,597
5,000 2,763 2,730
0
North America Bottling Asia Pacific Europe Latin America Eurasia and
Investments Africa
2013 2014

Geographical segmentation by revenue 2014
Coca-Cola: Geographical segmentation by revenue 2014
US
43%
ROW
57%
Recent developments
Company details Description
June 2015: Announces that the company and

Monster Beverage Corporation are closing their
strategic partnership related to an equity
investment, business transfers, and expanded
distribution in the global energy drink category
June 2015: Launches the world’s first PET

plastic bottle made entirely from plant materials
at the World Expo, Milan
Key highlights September 2014: Signs an agreement with

Coca-Cola Bottling of Central Florida
September 2014: Expands its partnership

agreement with Keurig Green Mountain (supplier
of specialty coffee, tea, and other beverages in
the US)
August 2014: enters into a long-term strategic

partnership with Monster Beverage (the US-
based manufacturer of energy drinks and natural
soft drinks)

August 2014: Announces plans to invest $5

billion in Africa for long-term sustainable growth
June 2014: Diet Coke (Coca-Cola's no-calorie

non-alcoholic beverage brand) partners with
celebrity designer Whitney Port to create a new
accessory
PepsiCo
Business overview
PepsiCo was established in 1898 and is headquartered in New York, US. It is a global
provider of beverages and food. Its key businesses include Quaker, Tropicana,
Gatorade, Frito-Lay, and Pepsi-Cola. As of December 31, 2014, the company had
271,000 employees and recorded revenue of $66.68 billion. It invested $718 million in
R&D for FY2014.
Business segmentation
Key product
Description
segments
Offers Lay’s potato chips, Ruffles potato

chips, Cheetos cheese-flavored snacks,
Frito-Lay North
Tostitos tortilla chips, branded dips, Doritos
America
tortilla chips, Fritos corn chips, and Santitas
tortilla chips
Provides pasta, dairy, cereals, rice, and other

branded products. Includes Quaker oatmeal,
Life cereal, Aunt Jemima mixes and syrups,
Quaker Foods North
Rice-A-Roni side dishes, Quaker Chewy
America
granola bars, Quaker grits, Quaker oat
squares, Cap’n Crunch cereal, Quaker rice
cakes, and Quaker natural granola

Key product
Description
segments
Offers Doritos, Emperador, Saladitas Marias

Gamesa, Ruffles, Cheetos, Lay’s,
Latin America Foods Rosquinhas Mabel, Elma Chips, and
Sabritas, as well as many Quaker-branded
cereals and snacks
Offers Pepsi, Aquafina, Diet Pepsi, Gatorade,

Mountain Dew, 7UP, Diet Mountain Dew,
Tropicana Pure Premium, Sierra Mist and
PepsiCo Americas Diet 7UP. It also provides ready-to-drink tea
Beverages and coffee products through joint ventures
with Unilever (under the Lipton brand name),
Starbucks, Dr Pepper, Crush, and
Schweppes
Offers Lay’s, Doritos, Ruffles, Walkers, and

Cheetos and as well as many Quaker-
branded cereals and snacks, through
PepsiCo Europe consolidated businesses and beverages like
Pepsi, Pepsi Max, 7UP, Diet Pepsi, and
Tropicana through independent distributors
and retailers
Offers Pepsi, Mirinda, 7UP, Mountain Dew,

Aquafina, and Tropicana via retailers and
PepsiCo Asia, Middle
distributors. It also provides Lay’s, Kurkure,
East and Africa
Chipsy, Doritos, Cheetos, and Crunchy
Quaker-branded cereals and snacks
Business segmentation by revenue 2014

Frito-Lay North America:
The segment's revenue increased by 3% to $14.5 billion in 2014 as compared to
$14.12 billion in 2013. The increase was due to effective net pricing and volume

growth. It was mainly due to sales volume growth in trademark Doritos, and due to
growth in variety packs and Sabra joint venture products and in dips.
Quaker Foods North America:

The segment's revenue declined by 2% to $2.56 billion in 2014 from $2.61 billion in
2013. This decline was due to unfavorable exchange rates and unfavorable net pricing.
It was impacted by lowered sales volume of Aunt Jemima syrup and mix and ready-to-
eat cereals, and in cookies. However, it was partially offset by low-single-digit growth in
oatmeal.
Latin America Foods:

The segment's revenue increased by 1% to $8.44 billion in 2014 compared to $8.35
billion in 2013. The increase in revenue was mainly due to favorable effective net
pricing. However, it was partially offset by declined sales volume and unfavorable
foreign exchange.
PepsiCo Americas Beverages:

The segment's revenue was even in comparison to 2013. The increase in revenue was
mainly due to favorable effective net pricing. However, it was offset by unfavorable
foreign exchange rates.
PepsiCo Europe:
The segment's revenue declined by 3% to $13.29 billion in 2014 compared to $13.75
billion in 2013. The decline was mainly due to the unfavorable foreign exchange rates,
which negatively impacted net revenue performance. However, it was partially offset by
effective net pricing and volume growth.
PepsiCo Asia, Middle East and Africa:

The segment's revenue increased by 3% to $6.73 billion in 2014 compared to $6.51
billion in 2013. The increase was mainly due to high volume sales and favorable
effective net pricing. However, it was partially offset by refranchising of the beverage
businesses in Vietnam and the Middle East.

Geographical segmentation by revenue 2014
Pepsi Co: Geographical segmentation by revenue 2014
QFNA
4%
AMEA
10% PAB
32%
LAF
12%
Europe FLNA
20% 22%
Source: Technavio 2015
PepsiCo in food sector

PepsiCo, through its strategic initiatives, focuses on expanding its business operations
in the food sector.
In 2011, the company announced a strategic alliance with Tingyi Holding (the largest
instant noodle producer in China). In 2011, the company acquired Mabel (a Brazilian
company that produces cookies, snacks, and crackers). The primary customers of
PepsiCo in the food sector include wholesale and other distributors, foodservice
customers, grocery stores, drug stores, convenience stores, discount/dollar stores,
mass merchandisers, membership stores, and authorized independent bottlers.
The primary competitor of PepsiCo in the food sector is Coca-Cola followed by DPSG,
Kellogg, Kraft Foods Group, Monster Beverage, Nestlé, Red Bull, and Snyder’s-Lance.
The company also sells Cheetos cheese-flavored snacks, Lay’s potato chips, Tostitos
tortilla chips, and branded dips, Doritos tortilla chips, Ruffles potato chips, Santitas
tortilla chips, and Fritos corn chips. It also sells Life cereal, Quaker oatmeal, Cap’n
Crunch cereal, Quaker Chewy granola bars, and Rice-A-Roni side dishes. It sells the
products under the brand name Sabritas in Mexico, including Cheetos, Doritos, Fritos,
Crujitos, Tostitos, Poffets, Rancheritos, and Sabritones. It offers cookies under the
brands Marias Gamesa, Mamut, Emperador, Arcoiris, Chokis, and Maizoro.

Recent developments
April 13, 2015: PepsiCo partners with

the NBA to handle marketing operations
April 2, 2015: Launches new music

platform during the 57 Grammy Awards
held in Los Angeles, California, US
Key highlights
March 27, 2015: PepsiCo Foundation
provides access to safe water in
Vennaram, India along with Safe Water
Network
December 11, 2014: Quaker Oats

launches new variants of oats
Vita Coco
Business overview
Vita Coco was founded in 2004 and has its headquarters in New York, US. The
company manufactures and distributes coconut water in the US markets. It is also
known as All Market Inc. It also has operations in Europe and Asia. It uses its network
of retail stores, independent groceries, and retailers in universities and airports for
selling its products. It also sells through online stores such as amazon.com.
Product segmentation
Vita Coco: Product segmentation
Coconut water
Vita Coco
Espresso
Kids
Oil

The company offers the following key products:
Vita Coco coconut water

It provides fresh and pure coconut water in a variety of flavors like pineapple,
lemonade, peach and mango, and orange. It comes in three sizes, 330 milliliters, 500
milliliters, and 1 liter.
Category Description
Vita Coco coconut water It contains pure coconut water with vitamin C
Vita Coco coconut water It contains coconut water, coconut puree, and
with pineapple pineapple puree with vitamin C
Vita Coco coconut water It contains coconut water, natural fruit sugar,
lemonade and lemon puree with vitamin C
Vita Coco coconut water It contains coconut water, peach puree, and
with peach and mango mango puree with vitamin C
Vita Coco coconut water It contains coconut water and orange juice with
with orange vitamin C
Vita Coco Café

It provides espresso with coconut water and milk with products like Vita Coco Café
Latte original and with flavors such as mocha and vanilla. It is available in a 330
milliliter pack.
Vita Coco Café - Café Latte It contains coconut water, skim milk, espresso
(water and coffee), sugar, whole milk, natural
original
flavor, and carrageenan
Vita Coco Café - Café Latte It contains coconut water, cocoa powder, whole
milk, espresso (water, coffee), skim milk, sugar,
Mocha
natural flavor, and carrageenan

Vita Coco Café - Café Latte It contains coconut water, sugar, skim milk,
espresso (water and coffee), natural flavor,
Vanilla
carrageenan, and whole milk
Vita Coco Kids

It provides flavored coconut water with creative packaging especially targeted at
children. It comes in a 180 milliliter package.
Categories Description
It contains filtered water, citric acid, coconut

Vita Coco Apple Island water, sugar, natural flavors, natural apple
flavor, and vitamin C
It is a coconut water which is naturally flavored

Vita Coco Paradise Punch with pineapple, cherry, strawberry, and orange.
It also contains vitamin C and artificial
ingredients
Vita Coco Very Cherry It contains natural cherry flavor, coconut water,
sugar, natural flavors, citric acid, filtered water,
Beach
and vitamin C
It contains natural lemon flavor, coconut water,

Vita Coco Pink Lemonade natural flavors, citric acid, filtered water, sugar,
natural strawberry flavor, and vitamin C
Vita Coco coconut oil

It provides a coconut oil for baking, cooking, and personal care. It comes in an
attractive package of 14 fluid ounces and 18 fluid ounces.
Key distributors
The company distributes all its products through the following key stores:
BJ's Wholesale Club
CVS
Costco Wholesale

The Fresh Market
Kroger
Publix
TARGET
WholeFoods Market
Walmart
Macs
Vita Coco in the non-alcoholic beverage sector 2015

The company has worked with its new agency partner Droga5 to create the brand's
broadcast spot with actress Jane Lynch for the campaign "Stupidly Simple". It also
sponsored Sunflowerfest 2015 in Hillsborough Village, UK.
It launched its "Stupidly Simple" global ad campaign targeting over 10 million

youngsters across the world. Through this campaign, the company took over London's
Waterloo station and a Street Talker competition with telephone booths featuring
promotional advertisements in the UK. It has plans to create a 30-second film which
will be broadcast in digital and social media.
In June 2015, the company aired its first US TV commercial, "Get More Healthy". It is
continuously growing in the US markets and it is focusing on expanding into the
Chinese markets by selling its 25% interest to the Reignwood Group licensing Red Bull
in China.
In May 2015, it partnered with L*Space to launch a limited edition palm tree print bikini
which is exclusively sold at the website of L*Space.
It has also partnered with Maroon 5 (a music band) for its upcoming V tour in North
America. Through this partnership, it has increased its popularity in the music industry.
It launched a yoga series at the Cove Beach, Jumeirah Beach Hotel in Dubai as part of
its marketing campaign.
Recent developments
Key highlights June 1, 2015: NBC's KSEE24 (owned by

Nexstar Broadcasting Group - a subsidiary of

NBC) showcases Vita Coco and its Vita Coco
coconut oil among its list of beauty routines
May 18, 2015: The Miami Herald publishes an

article on the collaboration for the L*Space bikini
inspired by Vita Coco
February 16, 2015: Life & Style magazine (a US

celebrity gossip magazine) features Vita Coco
coconut oil in its article named "Winter Skin
problems - Solved"
January 6, 2015: US Weekly magazine (a

celebrity and entertainment magazine) presents
Vita Coco 1 liter Pure in its article "What's in My
Fridge: How to Get Even Healthier"
December 18, 2014: Harper's Bazaar magazine

(a US woman's fashion magazine) features Vita
Coco coconut oil in its article "8 Beauty Products
We're Thankful For"
November 3, 2014: Makes a cameo of over five

minutes on the CBS hit TV show "Two Broke
Girls"

List of abbreviations
AMEA - Asia, Middle East and Africa
APAC - Asia-Pacific
BPA - Bisphenol A
CBS - Columbia Broadcasting System
CSD - carbonated soft drink

PART 17:
Appendix CVS - consumer value store
EMEA - Europe, Middle East, and Africa
FLNA - Frito-Lay North America
HPP - high pressure packaging

LAF - Latin America Foods
NBA National Basketball Association
NBC - National Broadcasting Company
PAB - PepsiCo Americas Beverages
QFNA - Quaker Foods North America
RTD - ready to drink

USDA - The United States Department of Agriculture

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GLOBAL COCONUT WATER MARKET

EUROPE, MIDDLE EAST, AFRICA

ALL MEDIA INQUIRIES

TECHNAVIO.COM GLOBAL COCONUT WATER MARKET 2015-2019 2

PART 01: Executive summary 5

PART 02: Scope of the report 6

PART 03: Market research methodology 8

PART 04: Introduction 9

PART 05: Market landscape 12

PART 06: Market segmentation by product type 16

PART 09: Key leading countries 23

PART 16: Key vendor analysis 44

PART 17: Appendix 56

PART 18: Explore Technavio 57

TECHNAVIO.COM GLOBAL COCONUT WATER MARKET 2015-2019 3

TECHNAVIO.COM GLOBAL COCONUT WATER MARKET 2015-2019 4

2014 MARKET SIZE 2019 MARKET SIZE

2015 MARKET GROWTH RATE 2019 MARKET GROWTH RATE

Growing health consciousness among consumers worldwide is the main driving

TECHNAVIO.COM GLOBAL COCONUT WATER MARKET 5

Revenue measured in $ terms

Volume measured in gallons

Unsweetened coconut water

EMEA: Austria, Belgium, Denmark, France, Finland, Germany, Greece, Italy,

Hypermarkets and supermarkets

TECHNAVIO.COM GLOBAL COCONUT WATER MARKET 6

Company Products offered

O.N.E. pure coconut water

O.N.E. coconut water with

O.N.E. coconut water

O.N.E. coconut water

Vita Coco pure coconut

Vita Coco Kids

TECHNAVIO.COM GLOBAL COCONUT WATER MARKET 7

Qualitative analysis Quantitative analysis

Top-down approach Bottom-up approach

Microeconomic Mesoeconomic Macroeconomic Data collection

TECHNAVIO.COM GLOBAL COCONUT WATER MARKET 8

Key customer segments Key market drivers

Growing health consciousness

Positioning of coconut water as a

Key market challenges

Increase in number of product

Emergence of maple water

False claims by certain vendors Growing popularity of coconut

High prices of coconut water Presence of large number of

TECHNAVIO.COM GLOBAL COCONUT WATER MARKET 9

Because coconut water is consumed fresh in tropical countries such as India,

TECHNAVIO.COM GLOBAL COCONUT WATER MARKET 10

TECHNAVIO.COM GLOBAL COCONUT WATER MARKET 11

Source: Technavio, 2015

TECHNAVIO.COM GLOBAL COCONUT WATER MARKET 12

Global coconut water market 2014-2019 ($ billions)

Revenue Growth rate

Source: Technavio, 2015

Increasing health consciousness among consumers is driving the sales of natural

TECHNAVIO.COM GLOBAL COCONUT WATER MARKET 13

240 19.93% 20.09%

112.35 134.15 160.41 192.08 230.37 276.65

Volume Growth rate

Source: Technavio, 2015

TECHNAVIO.COM GLOBAL COCONUT WATER MARKET 14

Bargaining power of suppliers