The coconut oil production business is largely promoted as one of the most profitable small-scale production businesses any entrepreneur can venture into in Africa since the producer doesn’t undergo the common risks and the high cost of production associated with other types of businesses. Coconut oil is majorly produced in countries like India, Indonesia, and the Philippines. But in some African countries, the coconut oil market is still in its infancy but experiencing a steady growth. Coconut oil offers a variety of health benefits and can be used for cooking as well as skin and hair care.
According to a Statista report, in 2015/16 the global export volume of coconut oil amounted to 3.32 million metric tons, while in 2017/18 the global production volume of coconut oil was forecasted to amount to about 3.44 million metric tons. This figure shows that the production in line with the demand for coconut oil has grown steadily over the years, because of its widespread health benefits.
Coconut oil is one of the richest sources of saturated fat, with 90% of its calories as saturated fat. It contains a unique composition of fatty acids and is highly resistant to oxidation at high heat, making it an ideal oil for high-heat cooking such as frying. It also contains medium chain triglycerides that are transported directly from the digestive tract to the liver and provide a quick source of energy.
Some Business Opportunities in Coconut Oil Production around the World
Coconut oil has high world demand as an ingredient in cosmetics, soaps, hair oils, body oils and in food products and has surged in popularity because of its health benefits.
Hair care Manufacturing:
Coconut oil is rich in antioxidants and has antiviral, antifungal, and antibacterial properties. When used on human hair, it improves the scalp health, fights various infections and fungus, and supports general hair growth, all while adding a beautiful shine without the common harmful chemicals. It is useful to the hair for treating dandruff, hair growth, hair styling, and also for lice prevention and treatment. High-quality hair creams made with coconut oil are always in high demand and you can take advantage of the market.
Coconut oil can be an important base ingredient for the manufacture of soap. It is more soluble in hard water and salt water than other soaps allowing it to lather more easily. Coconut oil is important for the skin, it’s great for soothing dryness and evening irritation from rashes. It is also good for fighting wrinkles and signs of ageing. Some skin ailments like psoriasis and eczema can be taken treated with coconut oil, along with simple activities like removing makeup in the eye without the use of chemicals.
Challenges Faced in Coconut Oil Production
The challenges of coconut oil production range between these listed below:
1). Lack of experience.
2). High cost of production.
3). Low consumer purchasing power.
4). Lack of finance
5). Poorly managed supply chain.
Facts and Benefits of Coconut Oil
- Coconut oil is easy to digest and protects the body from insulin resistance.
- Coconut oil is a great skin softener and helps you do away with dry and hard skin conditions.
- Coconut oil can also be used as a makeup remover.
- When applied to infected areas, coconut oil forms a chemical layer that protects the infected body part from external dust, air, fungi, bacteria, and viruses.
- It contains antifungal, antiviral, and antibacterial properties. It protects scrapes and cuts from dirt and speeds up the healing process.
Coconut facts and figures
- Demand for coconuts worldwide has grown by more than 500 percent in the past decade.
- Coconut water is now a $300 million-plus global industry.
- World prices for coconut oil have more than doubled in the past five years
- 90 percent of global coconut supply comes from Asia.
Top Coconut Oil Producing countries globally
Source: Index Mundi
You can search the web for other methods, watch videos on YouTube, and learn more about the health and economic benefits. As an entrepreneur seeking out a business to venture in Africa, the coconut business is one of those business you’d like to consider.