Sri Lanka’s $ 1.2 billion in coconut export earnings last year (2025), which represented a 43% growth from the previous all time-high recorded in 2024, was led by the demand for value added coconut product exports, Ceylon Chamber of Coconut Industries (CCCI) Chairperson Jayantha Samarakoon told The Daily Morning Business yesterday (3).
“Last year’s export earnings were not driven purely by an increase of export quantity, it was for value added products and the international market price increase, hopefully that will continue for this year also,” Samarakoon said, explaining a global trend which has increased preference for coconut milk and coconut-based product consumption.
Meticulous Research, a global market research and consulting firm, last year said that the global coconut milk powder market’s valuations are forecast to nearly double, from $ 224.2 million in 2025 to $ 409.9 million by 2032, driven by surging consumer demand for plant-based, dairy-free alternatives.
The forecast, released by Meticulous Research, anticipates a compound annual growth rate (CAGR) of 9% during the period, reflecting evolving global dietary trends and increased awareness of lactose intolerance.
“Coconut has been taken as a superfood, globally. The vegan market in the US and EU find coconut as an ideal substitution to dairy. Coconut milk is increasingly a preferred option of milk at franchises like Starbucks. This is why the coconut milk and coconut cream market is thriving,” Samarakoon said.
Addressing the increased preference for non-traditional value added coconut products, Samarakoon said that Desiccated Coconut (DC) no longer holds its position as a top coconut kernel export product. “Five years ago, DC was the number one export income product, in kernel products.” Today in terms of kernel products, coconut milk, coconut cream, coconut milk powder, coconut water and DC are products that have driven this growth, with DC notably falling behind the other products, Samarakoon noted.
According to Export Development Board (EDB) data, in the subcategories of coconut export products, coconut cream saw a 93.16% increase in export earnings, coconut oil a 78% increase, and coconut milk saw a 61% increase in 2025.
Samarakoon added that the production for the year is to surpass last year’s 2.9 million nuts, with a likelihood of production reaching 1.2 billion nuts in the first quarter. “In coconut production, this year we are expecting 3 billion coconuts, in fact we predict that within January, February, March and April, those four months will yield 1.2 billion coconuts, if that happens, we might exceed the production of 3 billion coconuts.”
Earning projections, according to Samarakoon, are to remain modest this year. “Last year, we earned $ 1.2-1.3 billion, this year we are also targeting the same, around that figure.”