Singapore’s Siam Coconut diversifies portfolio to keep up with market trends as coconut water category hits plateau
Compared to a decade ago, coconut water has matured into an everyday beverage that people consume without creating much buzz, according to Kelvin Ngian, General Manager of Siam Coconut.
“We haven’t seen much excitement in the space in a while. I personally do see the hype tapering off, but it’s a gradual fall because right now, there are a lot of other interesting beverages that are pulling attention away from consumers, or people are just trying different products now.
“The coconut product category as a whole is slowing down. It’s not on a major decline but it’s not growing as fast as it used to. I believe it has plateaued but the demand for coconut water will always be there since it’s a cooling drink that people like to go for. It’s a slowdown in growth more than a real reduction in sales figures,” Ngian told FoodNavigator-Asia.
At the same time, the firm has observed a shift in consumer preferences in regard to coconut water.
“People are more particular about the quality and flavour of coconut water. Now, individuals have a favourite or prefer a certain type of coconut water. We are also starting to see a streamlining of flavour — instead of coconut water with some other fruit juice, consumers are going for original coconut water. This is a sign of the category maturing as well.”
Cocoloco, one of Siam Coconut’s in-house brands, is focused on manufacturing pure coconut water using Thai Nam Hom coconuts, a variety known for its sweet flavour profile and aroma.
“We strive to preserve the taste of Nam Hom coconuts as best as we can. A lot of brands use coconuts from different places and try to replicate the flavour by adding sugar or flavourings. With our raw materials, we don’t need to do that because they are good on its own. We just need to bottle that flavour and get it out to the masses.”
Cocoloco is available on its website and e-commerce platforms, such as RedMart and Shopee, while the firm also supplies fresh coconuts to food services.
On the lookout for market trends
Over the past few years, Siam Coconut has been actively exploring new brands to bring into Singapore. One of them is Thailand’s plant-based milk brand 137 Degrees, for which the firm has been the sole distributor since 2019.
It has also introduced Incredible Juice’s range of reduced-sugar juices to the local market.
Beyond beverages, the company is looking to import chocolates from Chiang Mai later this year.
“Plant-based milk has been quite on trend in recent years. And with the Nutri-Grade ratings, people are more conscious of sugar levels in beverages. Most juices in the market are graded C and D because of the sugar content, but Incredible Juice products are graded B.
“We have been diversifying our portfolio for some time now. Coconuts are natural products that are subjected to climate change and harvest conditions. That’s why we are always on the lookout for new trends and for the next healthy product to bring in. For example, there’s currently a growing trend of beverages claiming to benefit mental clarity and wellness.”
While the business focus is still on Singapore going forward, Ngian said that the firm is open to opportunities that will bring its brands overseas.
“For instance, there is a group of hotels and restaurants in London opened by a Singaporean, who brought over a bunch of local products, including Cocoloco, for retail and to elevate the Singapore branding there.”
