Coconut oil: Characteristics
Lauric acid: the molecule that makes coconut oil special
What this tab covers The supply and physical characteristics of the commodity. Supply: current production, inventories and stocks, capacity utilisation, geographic and producer concentration, how fast supply responds to price, the project pipeline and capital spending, and logistics and export flows. Material: the physical and chemical properties that set its grade, price and end uses (for example purity and conductivity for metals, API gravity, sulfur and energy content for fuels, moisture, protein and fibre quality for crops).Supply volume characteristics
| Characteristic | Figure | What it means | Source |
|---|---|---|---|
| Current production volume | about 3.1 Mt of coconut oil (FAOSTAT 2023); 3.8 Mt forecast for 2026/27; copra 5.92 Mt (2025/26) | The Philippines, Indonesia and India make most coconut oil. India grows about 31% of the world's nuts (20,301 million in 2024-25) but sells many fresh. | FAOSTAT 2023; USDA PSD; Ministry of Agriculture |
| Inventory and stock levels | world coconut oil ending stocks 0.63 Mt forecast for 2026/27, 17.6% of use, about 64 days | Stocks sit with Philippine and Indonesian millers and European refiners. India has no buffer norm; NAFED buys copra at MSP (milling Rs 12,027/quintal, ball Rs 12,500/quintal in 2026). USDA puts India's oil stocks at 86 kt. | USDA PSD; Government of India |
| Capacity utilisation | not published | Supply is limited by ageing trees and typhoons, not mill capacity. Oil recovery from copra is about 63% (USDA). | USDA PSD |
| Geographic and producer concentration | top country Philippines 38.8%, top-3 (Philippines, Indonesia, India) 77.1% of coconut oil, HHI 2,308 (2023) | Trade is concentrated in Philippine and Indonesian millers, with Cargill, Wilmar and Franklin Baker as large buyers and processors. | FAOSTAT 2023; content of this tile |
| Supply elasticity | very low: tall palms take several years to bear and produce for decades | Output cannot respond to price within years. Many Philippine trees are old, and replanting is slow. Typhoons and El Nino droughts cut yields for a year or more. | industry practice; content of this tile |
| Project pipeline and CapEx | no capacity projects tracked | Replanting with dwarf and hybrid palms is the main source of new supply; Brazil's irrigated plantations yield 16.9 t/ha of nuts (FAOSTAT 2024). | FAOSTAT 2024 |
| Logistics and export flows | about half of oil output is exported: the Philippines 1.2 Mt and Indonesia 0.63 Mt in 2025/26 | Routes: Philippine ports (Batangas, Davao, Cagayan de Oro) and Indonesian ports to Rotterdam, the US and China. India exports coconut products worth $795 million (Coconut Development Board). Typhoon season disrupts collection. | USDA PSD; Coconut Development Board |
Material characteristics Agricultural / soft commodity
Coconut oil is a lauric oil: almost half its fatty acids are lauric acid, which gives a sharp melting point and makes it valuable for soaps, detergents, confectionery and hair oil. It competes mainly with palm kernel oil. Copra quality (moisture, mould, aflatoxin) sets the yield and colour of the oil.
| Property | Value / specification | Why it matters | Source |
|---|---|---|---|
| Lauric acid | 45.1-53.2% of fatty acids | The reason soap and oleochemical makers buy it | Codex Standard 210-1999 |
| Iodine value | 6.3-10.6 g I2/100 g | Very low unsaturation gives long shelf life | Codex Standard 210-1999 |
| Melting point | about 24-26 C | Solid in temperate winters, liquid in the tropics; useful in confectionery fats | industry data (indicative) |
| Copra moisture | about 6% or less for milling copra | Wet copra moulds, raising free fatty acids and aflatoxin | trade practice (indicative) |
| Oil content of copra | about 63-65% | Sets mill yield | USDA PSD (63% recovery) |
| Free fatty acids (crude oil) | set by contract; refined oil about 0.1% or less | High FFA means refining loss and off-flavours | trade practice (indicative) |