Siam Coconut Responds to Singapore's Declining Coconut Water Market with Diversification and Focus on Quality

After experiencing two years of growth, the Singaporean coconut water market declined by 16.4% in 2023, bringing the total market value down to USD 15 million. While overall consumption of coconut water in Singapore showed strong growth from 2012 to 2023, recent trends indicate that the hype around coconut water is gradually tapering. This slowdown is attributed to the emergence of innovative beverages that are diverting consumer attention and slowing down the growth of the coconut product category. Although the decrease is not severe, the market is not expanding at the same pace as before.

To adapt to this shift in consumer preferences and the slowdown in demand for coconut-based products, Singapore-based manufacturer and distributor Siam Coconut is actively exploring new product categories to diversify its portfolio. The company recognizes that consumers are becoming more selective about the quality and flavor of coconut water. For example, many consumers now have a preferred brand or type of coconut water, with a noticeable trend favoring pure coconut water over flavored or blended options. This trend reflects a maturing market where consumers prioritize authenticity and quality.

In response, Siam Coconut has focused on Cocoloco, one of its in-house brands, which specializes in pure coconut water made from Thai Nam Hom coconuts. This coconut variety is renowned for its naturally sweet flavor and aromatic profile, making it an appealing choice for discerning consumers who prefer pure and high-quality coconut water. Cocoloco products are available on the company’s website and through popular e-commerce platforms such as RedMart and Shopee.

Figure 1. Cocoloco Pure Coconut Water

As demonstrated by high ratings on popular e-commerce platforms, Cocoloco has successfully established a strong positive consumer perception. For instance, Cocoloco Pure Coconut Water boasts an impressive 4.9 out of 5-star rating on Shopee, reflecting high levels of customer satisfaction. Additionally, the Cocoloco brand holds a perfect 5-star rating on Shopee, highlighting the brand's consistent quality and appeal among consumers. These ratings suggest that consumers value the brand's commitment to offering high-quality, pure coconut water, particularly using the Thai Nam Hom coconuts. Such favorable feedback reinforces Cocoloco's position in the market and enhances its credibility, aiding the brand's efforts to maintain customer loyalty and attract new buyers amidst a competitive landscape. In addition to retail sales, Siam Coconut also supplies fresh coconuts to the food service sector, such as restaurants and cafes, to meet the demand for fresh, unprocessed coconut water.

Beyond its brands, Siam Coconut is actively looking to expand its product offerings by bringing new brands into the Singaporean market. Since 2019, Siam Coconut has been the sole distributor of Thailand’s popular plant-based milk brand 137 Degrees in Singapore. This brand offers a range of plant-based milk options, such as almond, macadamia, and walnut milk, which align with the rising demand for dairy alternatives among health-conscious consumers. Moreover, Siam Coconut has introduced Incredible Juice's range of reduced-sugar juices to the local market, catering to consumers who seek healthier beverage options with lower sugar content.

Figure 2. Incredible Juices Range of Products

Siam Coconut’s strategy to expand its product portfolio reflects its efforts to adapt to changing market dynamics and shifting consumer preferences. By focusing on high-quality, authentic coconut water and diversifying its offerings with plant-based milk and healthier juice options, the company aims to stay relevant and sustain growth in a challenging market environment.