Project report for Coconut Oil

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Coconut is a small holder’s plantation crop grown in the humid tropics and tropical regions. India is a major producer of coconut in the world. The country’s production is 12535.9 million nuts from an area of 17.54 lakhs hectares. Virgin coconut oil is obtained from fresh matured coconut. This oil is mainly used as a body massage oil and as an ingredient in Ayurveda medicine. It is used as hair oil. It is applied on the body of babies to protect from skin troubles. There is very good demand of virgin coconut oil rather than general coconut oil. There is demand growth of coconut oil is 10% per annum. Govt. of India declared minimum support price for both milling and edible copra. The prices of coconut oil and copra continued to rule at low level in all the major markets. Virgin coconut oil has very good demand. To looking this increasing demand, we can say that any new entrepreneur can venture into this field.

Coconut oil or coconut butter is an edible oil derived from the wick, meat, and milk of the coconut palm fruit. Coconut oil is a white solid fat, melting at warmer room temperatures of around 25 °C (78 °F), in warmer climates during the summer months it is a clear thin liquid oil. Unrefined varieties have a distinct coconut aroma. It is used as a food oil, and in industrial applications for cosmetics and detergent production. Due to its high levels of saturated fat, numerous health authorities recommend limiting its consumption as a food. Coconut oil, is an edible oil extracted from the kernel or meat of mature coconuts harvested from the coconut palm. Today, consumers desiring to purchase coconut oil have a wide variety of choices. Coconut oil is often described as the “healthiest oil on earth.”

Market potential & Strategy

The India coconut oil-based cosmetics market stood at a value of 8225 INR Crore in 2020. The market is further expected to grow at a CAGR of 6.8% in the forecast period of 2021-2026 to attain 12523 INR Crore by 2026. This can be attributed to the rising awareness about the advantages of using coconut oil-based skin care products. The demand for coconut oil in anti-aging creams, owing to its anti-oxidant properties, has been significant. It is utilized as one of the base ingredients in popular skin care as well as hair care products. Furthermore, coconut oil-based cosmetics reduce inflammation, keep skin moisturized, and prevents acne. Therefore, they have a significant demand in the beauty industry in India. Over the forecast period, the coconut oil-based hair care products are likely to witness a robust growth in the country owing to the rising pollution in states like Delhi, Haryana, Uttar Pradesh, and Maharashtra, among others, as they are effective in preventing the damage of hair. The rising disposable income, increasing competition among key market players in the cosmetics and personal care sector, and the descent growth rate of India’s economy are expected to further bolster the market growth in the forecast period.

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