Smart Investors are Finding Gold in Coconuts.
The small South American country of Guyana is seeing a global increase for all things coconut even as production in Asia is stagnating. While farmers in Asia aren’t being paid enough to make it worthwhile, North Americans are going crazy for coconuts from Guynana.
8.5 Million (USD) is A Lot of Coconuts
According to Market Research Future, the coconut oil marketplace is forecast to reach eight-and-a-half million USD by 2025. The market for coconut oil from Guyana is primed for phenomenal growth thanks to the increasing numbers of smart shoppers turning to health and wellness products.
Increasing need for edible oils in North America, combined with its reach across industrial sectors like cosmetics & personal care, and biofuels and pharmaceuticals, will continue to spur market demand.
“The world is facing a time bomb,” said Danielle Hodge, Founder and CEO of Indigenous Coconut Oil. “Already 50% of the world’s coconut trees are doddery and are seeing their last years of production.”
“Our farms and plantations in Guyana are the exception to that,” she added.
Hodge is working in Guyana to help farmers get better pricing along with improved production. As she works to shrink the function of middlemen by linking growers with a local buyer, prices will grow. Already global food companies have noticed French energy company, Veolia, investing $45 million to grow sourcing, devoting resources to young farmers and creating small to medium processors.
Not Just Foreigners
It’s not just foreigners who see the growth potential in oil-based beauty products. Private equity firm L Catterton led a significant investment which included model Karlie Kloss and Ashton Kutcher.
Indigenous Coconut Oil experiences growth by harnessing digital and social platforms to build label awareness while building a loyal network of loyal customers. The brainchild of Hodge, the company uses 100% organic virgin coconut oil as the basis for all its products.
(Almost) All Purpose Product
If it’s coconut oil, we clean our teeth with it and use it to wash our faces. If it’s coconut water, we consume it and the number of coconut water brands in the market have grown four times since 2010.
Although coconut products are relative startups to the mainstream market in North America, there’s little data available about manufacturing standards when viewed next to other tropical imports.
Fair Trade Certification
Fair trade certification is on everyone’s radar when it comes to coffee, chocolate and tea, but the conversation is missing from coconut merchandise. It’s challenging to discover fair trade coconut oil, water or milk in stores.
Hodge is working to change that. She points out that Americans would be prudent to give a fair price for their coconut products as farmers are not happy with how little money they make.
APCC, the Asian Pacifc Coconut Community based in Jakarta, claims that coconut farms throughout Asia are stumbling with zero growth and are switching from more profitable crops like palm oil.
“Coconut farms are sold to middlemen, who resell them to processing factories for 50-percent more,” said Hodge. “The prices are low to start with farmers receiving about twelve- to twenty-five-cents a nut.”
While farmers make pennies, the average serving of coconut water, from one nut, sells for around $1.50 in America.
Anyone who loves their coconut oil should seek opportunities to buy fair trade brands which guarantee decent pay for farmers and workers while enforcing higher agricultural standards.
Indigenous Coconut Oil is uniquely positioned to meet the increasing demand for natural beauty products and with a loyal following already, the company presents a significant opportunity to speed up its expansion in America.
With added support from high-profile investors, Hodge argues that the brand will connect deeper with its target consumer and solidify its position as a market leader.
Contact Danielle Hodge today to explore investment opportunities and learn how you can help build Indigenous Coconut Oil into a more complete global entity while continuing to establish Indigenous Coconut Oil as a fair trade company.