---
title: "Coconut Water Has Grown into an Increasingly Mature Beverage Category!"
description: "Coconut water sales continue to rise in multiple global markets, evolving from a trendy health drink into an increasingly mature beverage category. According to Euromonitor International, retail sales of coconut water in the U.S. have approached $2 billion. In China, a Mintel report shows steady growth in plant-based protein beverages perceived as nourishing, with coconut drinks being the fastest-growing subcategory."
author: "何丹琳"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2017-10-19"
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# Coconut Water Has Grown into an Increasingly Mature Beverage Category!

> Coconut water sales continue to rise in multiple global markets, evolving from a trendy health drink into an increasingly mature beverage category. According to Euromonitor International, retail sales of coconut water in the U.S. have approached $2 billion. In China, a Mintel report shows steady growth in plant-based protein beverages perceived as nourishing, with coconut drinks being the fastest-growing subcategory.

Coconut water sales continue to rise in multiple global markets, evolving from a trendy health drink into an increasingly mature beverage category.
According to Euromonitor International, retail sales of coconut water in the U.S. have approached $2 billion. In China, a Mintel report shows steady growth in plant-based protein beverages perceived as nourishing, with coconut drinks being the fastest-growing subcategory. 30% of Chinese consumers said they drank more coconut water in the six months before October 2015 than before, surpassing soy beverages (29%) and grain beverages (26%).
The global popularity of coconut water owes much to brands like Vita Coco and Zico, launched in New York around 2004. Initially obscure, they saw explosive growth around 2010—People magazine dubbed coconut water the "celebrity summer drink," and paparazzi captured top stars drinking it.
Celebrity endorsements boosted Vita Coco's global sales. According to Euromonitor, sales rose from a few million dollars around 2005 to $44 million in 2010, and soared to $551 million in 2015.
Meanwhile, Zico caught Coca-Cola's attention, which became one of its earliest investors. Both companies vied for leadership in this niche through aggressive sales strategies and celebrity endorsements, with new small brands constantly entering the fray.
Google Trends shows a noticeable year-on-year rise in coconut water searches from 2010, while Baidu Index indicates gradually increasing search interest from 2011 to 2016 (especially since 2015), concentrated in first-tier cities like Beijing, Shanghai, Guangzhou, and Shenzhen.
Comparison of leading coconut water brands in the U.S. market. Source: Euromonitor International
China's largest natural plant-based protein beverage producer, Hainan Yeguo (椰树集团), owns "Yeguo Coconut Juice," one of the most well-known coconut drink brands domestically. According to Euromonitor, since 2012, Yeguo's share of the juice category in supermarket channels has grown for four consecutive years, reaching 6.7% in 2015, surpassing Tingyi's Master Kong juice (5.7%) and trailing only Coca-Cola's Minute Maid juice drinks (14%).
Euromonitor reports that beyond multinational giants, the coconut water market is highly fragmented and rapidly changing, with many brands seeking new opportunities in this growing segment.
An interesting example is Coconut Beach, a U.S. company producing coconut water and shredded coconut, which pursues a low-price strategy: a can of coconut water is priced at 99 cents and sold in dollar stores. Such an affordable price was previously unimaginable, but Coconut Beach believes this market has great potential, betting that many consumers are interested in coconut water but found previous prices too high.
At the other end, the premium market is also developing, with more brands emphasizing health or environmental attributes and launching new products to attract consumers, such as "artisanal coconut water." Flavors are diversifying too, including coconut water with chocolate, lemon, or matcha. Brands like Coco Libre and CocoMazing have even experimented with carbonation to make sparkling coconut water. Vita Coco offers Vita Coco Café, a blend of coconut water, milk, and espresso.
All this indicates that the coconut water market has evolved into a large and diverse market, catering to discerning consumers seeking organic drinks as well as those in dollar stores looking for healthier alternatives to carbonated beverages. Euromonitor predicts sustained steady growth for the coconut water market in the coming years.
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