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Coconut oil: Overview

Cooking, creamers and shampoo: coconut oil's two lives

Cooking, creamers and shampoo: coconut oil's two lives What this tab covers What the commodity is used for, why, in what volumes and with what alternatives, and its chain from mine or field to end user. Also the latest price moves, top recent news, three things to know, and buttons into each tab.

Key uses

UseShareAnnual volumeWhy this commodityAlternatives
Coconut oil for food: cooking oil (Kerala, Sri Lanka, Philippines), confectionery and bakery fats, non-dairy creamers, frying55.8%1.99 Mt of oil in 2025/26; India 365 kt, EU 365 kt, Philippines 215 kt, China 200 kt, US 190 ktbasis Coconut oil is rich in lauric acid and saturated fat, so it is solid in cool weather, resists rancidity and melts sharply, which suits confectionery coatings and creamers. In Kerala and coastal Karnataka it is the traditional cooking oil, and households buy it despite a large premium over palm oil. USDA PSD, October 2026 Palm kernel oil (the other lauric oil)
Palm oil and palm stearin
Groundnut and sunflower oil (cooking)
Coconut oil for industry: soaps, detergents, oleochemicals (fatty alcohols, lauric acid), cosmetics and hair oil43.7%1.56 Mt of oil in 2025/26; Philippines 300 kt, Indonesia 285 kt, EU 260 kt, US 250 kt, India 195 ktbasis Lauric and myristic acids give quick, rich lather and good cleaning, so lauric oils are the base of many soaps and surfactants. In India packaged coconut hair oil is a large consumer market (Marico's Parachute is the leading brand). USDA PSD, October 2026 Palm kernel oil
Petrochemical surfactants
Tallow
Fresh nuts: grated coconut and coconut milk in cooking, tender coconut water, desiccated coconutn/a India produced 20,301 million nuts in 2024-25; only part goes to copra (USDA puts India's copra output at 935 kt for 2025/26)basis In India most nuts are used fresh in kitchens and temples or sold as tender coconuts, rather than dried into copra. Fresh coconut has no real substitute in south Indian, Sri Lankan and Southeast Asian cooking, and coconut water and milk are growing export lines. PIB, India's coconut sector backgrounder, 18 August 2026; USDA PSD Dairy cream and milk
Packaged drinks (for coconut water)
Copra meal for feedn/a follows the 5.87 Mt copra crush in 2025/26; meal output not checked herebasis After oil is pressed out of copra, the remaining cake is a medium-protein, high-fibre feed used for dairy cattle in the Philippines, Indonesia and India and exported to feed markets in Asia. Its value adds to copra milling margins, but it is a minor product by value. USDA PSD, October 2026 Palm kernel cake
Soybean meal
Rapeseed meal
Husk and shell products: coir fibre, coir pith, shell charcoal and activated carbonn/a India's coconut product exports were Rs 7,038 crore ($794.7 million) in 2025-26, with activated carbon the largest linebasis Shell charcoal makes a hard, highly porous activated carbon used in water treatment, air filters and gold recovery. Coir fibre from husks goes into mattresses, mats, ropes and geotextiles, and coir pith is a growing medium. These uses turn waste into income for Indian and Sri Lankan processors. PIB, India's coconut sector backgrounder, 18 August 2026 Coal- and wood-based activated carbon
Synthetic fibres and foam
Oil shares are of world coconut oil domestic use in 2025/26 from USDA PSD: food 55.8%, industrial 43.7%. Fresh-nut and fibre uses are not in these shares, and no world split of nuts by end use was found.

From field to user

  1. Planting and growth Palms take several years to bear, dwarf types sooner than tall types, and produce for decades. India had 2.19 million ha in 2024-25.
  2. Harvest Nuts are picked in rounds through the year by climbers or fall naturally. India averaged 9,249 nuts/ha in 2024-25 (Ministry of Agriculture).
  3. Fresh sale or dehusking Tender nuts are sold for water; mature nuts are dehusked, and husks go to coir units.
  4. Copra making Kernel is dried in the sun or in kilns to make milling copra, or nuts are stored whole to make ball copra. World copra output was 5.92 Mt in 2025/26 (USDA).
  5. Crushing and refining Copra is expeller-pressed for crude coconut oil (63% oil recovery in USDA data) and the oil is refined, bleached and deodorised for industry and export.
  6. Export The Philippines exported 1.2 Mt of oil and Indonesia 0.63 Mt in 2025/26 (USDA), mainly to the EU, US and China.
  7. End users Households, food processors, soap and oleochemical makers, hair oil brands, coir and activated carbon industries.

Price movement snapshot 2026-10-25

Coconut oil (World Bank monthly) 2,083 $/mt Month 2026-09 1 week no daily price 6 months -11.3% World production 3.12 m tonnes, 2023 Largest producer Philippines 38.84% of world

Three things to know

  • World coconut oil output in 2023 (3.12 Mt) was below its 1990 level of 3.35 Mt, according to FAOSTAT.
  • In real 2010 dollars, the 2025 average price ($2,136/t) was nearly three times the 2019 level ($739/t).
  • The Philippines, Indonesia and India together produced about 77% of world coconut oil in 2023.

Top recent news snapshot 2026-10-25, last 30 days

Chemicals made from it

AC Activated carbonSrf SurfactantsFA Fatty acidsFAl Fatty alcohols

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