Dive Brief:
- Rich's Products Corporation introduced the first whipped topping made with coconut milk, according to Perishable News. It contains coconut milk, coconut oil and sunflower oil.
- The new topping, called Cafe Whip, is vegan and kosher pareve. It is made with sugar, has no hydrogenated oils, and is lower fat than sweetened and flavored heavy whipping cream.
- According to research commissioned by Rich's, 60% of consumers said they would visit coffee shops more often if a dairy-alternative whipped topping was offered, and 77% would be likely to try a topping made with coconut milk.
Dive Insight:
This coconut milk topping could have many uses, but it was developed for coffee shops. The market share of gourmet coffee beverages continues to increase, including specialty coffee, gourmet traditional coffee and iced or frozen drinks. According to the National Coffee Association’s 2016 trends report, millennials prefer gourmet coffee beverages. Their popularity soared from 13% to 36% between 2008 and 2016 for 18-24 year olds, and from 19% to 41% in the same time period for those ages 25-39.
Couple these facts with research from Markets and Markets that indicates the the dairy alternatives market is projected to reach $19.5 billion by 2020, with a CAGR of 15.5% from 2015 to 2020. Although the market is dominated by soy, almond and rice milk, consumers should continue to see more dairy alternatives like this coconut milk-based whipped topping, premier in coffee shops and on store shelves.
Coconut milk overall is growing in popularity in the U.S. with a 15.5% increase in sales from 2013 to 2014, according to Markets and Markets, so a company that introduces a coconut milk based product is riding the wave of popularity.
The top five coconut-producing countries include Indonesia, the Philippines and India, with Brazil a distant fourth. Coconut as an ingredient is experiencing high global demand, which is pushing up prices. Many Asian countries have strong domestic demand, and coconut trees are aging, which cuts into production levels. Price and availability could act as barriers for future expansion of coconut milk as a dairy substitute.