Shredded coconut is a stellar ingredient used in various cuisines. It elevates savory dishes and baked goods by adding another layer of texture and enhancing appearance when used as a topping or coating.
It’s also a versatile food ingredient as it comes in different variants—you can buy it unsweetened, sweetened, as coconut flakes, desiccated coconut, or even in powder form.
However, fluctuating prices are one problem consumers face when purchasing grated coconut. While some food ingredients are more stable in terms of costs, grated coconut prices can go up or down due to various factors.
Thus, if you often use grated coconut in your dishes or are a business owner who always needs an ample supply of this product, this consumer’s guide is for you. Keep reading as we’ll discuss the factors that affect the cost of shredded coconut and provide tips on how to save money when purchasing this ingredient.
Why Does the Cost of Grated Coconut Vary?
Several elements influence the variation of grated coconut prices, but most of these can be summed up into the following three:
Seasonality is one of the main factors impacting prices, as both rainfall and temperature significantly affect coconut yield. Thus, unfavorable weather conditions result in fluctuations in coconut prices. For instance, extended periods of no rain generate less coconut production. Conversely, too much cloudiness during rainy seasons negatively impacts nut growth.
The monsoon season in countries where coconut is typically grown is another factor that affects production. For instance, coconut farmers may need more time to harvest coconuts in rainy conditions. Stronger winds from typhoons can also cause coconut trees to fall due to their short root system.
Remember, coconuts are primarily sourced from Asian countries like the Philippines, Thailand, India, and Sri Lanka. In other words, they must be transported from these regions across considerable distances to reach consumers in Western nations.
Unfortunately, logistic costs are primarily influenced by fluctuating fuel prices. Fuel prices, in turn, are affected by global events, among other factors. The Ukraine-Russian conflict is an example of an event that has severely disrupted the oil supply, resulting in higher production costs for various kinds of food.
Another factor is the degree of processing required to create grated coconut. For instance, desiccated coconut must go through a process that involves machinery for shredding and packaging, which rely on electricity. Similar to logistics, electrical power is also impacted by fuel prices.
According to Future Market Insights, the demand for desiccated coconut is projected to go as high as $13.7 billion in 2023 from an estimated value of $8.2 billion in 2022. Different factors are said to drive this growth in the coming decade, some of which are “numerous health benefits, low price, easy availability, and long shelf-life of coconut-based products.”
Another factor that positively impacts the desiccated coconut market is buyers' preference for organic products and healthy food alternatives. Desiccated coconut is an attractive ingredient to health-conscious consumers as it contains no cholesterol and is rich in various nutrients, including manganese, dietary fiber, copper, and selenium.
As these factors augment the demand for this ingredient, consumers can expect potentially higher desiccated coconut prices in the future.
How Does the Fluctuating Cost of Grated Coconut Impact Consumers?
Naturally, the fluctuating cost of grated coconut will inevitably affect consumer behavior, particularly those who procure substantial quantities of this ingredient. This will likely lead buyers to purchase less grated coconut products, or in extreme cases, none at all, opting to shift instead to desiccated coconut alternatives. They may also be drawn to lesser-known coconut products that are more affordable than their go-to brands.
On the other hand, business owners who use this ingredient in their food products may lessen the amount of grated coconut on their menus or retain the usual amount at the expense of price increases. Moreover, they may be more encouraged to purchase this ingredient in bulk to save money in the long run.
Tips for Saving Money When Purchasing Grated Coconut
It can be challenging to lessen or get rid of this tasty food ingredient altogether. Thus, to help you deal with rising grated coconut prices, we’ve listed several tips you can follow to save money:
Buy in Bulk
Buying in bulk may mean that you’ll be spending more money initially, but it’ll allow you to save more funds in the long run. Additionally, when you purchase large quantities of something, it lessens the number of times you would need to go to the store to purchase that item. Just remember that if you’re buying scrapped coconut in bulk, always buy the amount you’ll be able to use up before its expiration date to prevent food wastage.
Take Advantage of Deals and Discounts
There are several ways to score deals and discounts when buying coconut products. For instance, clearance sections in grocery stores offer different discounted items, so you can check for grated coconut there. You can also use grocery reward credit cards to earn cash back or points on your purchases. Furthermore, grocery stores often offer loyalty programs you can sign up for to obtain points and other benefits like coupons.
Compare Prices From Different Stores
The shredded coconut you frequently buy in your go-to store might be more affordable in another. To know the latest prices of coconut products in different stores, you can use grocery price comparison websites or mobile applications offering similar services. This can help you save money by giving insight into which grocery store you should head to.
Be Open to Other Brands
Sometimes, we only discover that lower-priced brands are just as flavorful, if not more, than the big-name brands we’re used to purchasing. If there is an increase in desiccated coconut prices and other grated coconut products, it’s a good idea to be open to trying other brands. The difference may be so subtle that you won’t even notice it.
Grated coconut in its various forms is an excellent addition to dishes and baked goods. However, different factors can impact its price, so following the earlier tips can help deal with this ingredient’s fluctuating costs.
If you’re looking for premium grated coconuts in the USA, Red V Foods is a reliable supplier of high-quality coconut products. We source our coconuts from the Philippines, one of the world’s top producers of coconuts. More importantly, our products are USDA-certified organic and non-GMO.Aside from grated coconuts, we offer various other coconut products, such as coconut milk powder, toasted coconut, and coconut cream. Feel free to contact us today to learn more about how we can help you.