August 14, 2019 by Amanpreet
Manufacturers in the coconut oil market are making a smart switch from the traditional business model and leveraging the evolving statistics. The purpose of this switch is to ensure increased production and tap into prime opportunities. Sensing the fad for high-value products such as virgin coconut oil as a functional food oil across the global stratosphere, manufacturers are revving up the production of such products to attain high profits margins. With the onset of the eco-innovation trend, key stakeholders in the coconut oil market are swiftly adopting sustainable methods to come up with high-quality products in resonance with environmental wellness.
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The health benefits of coconut oil continue to be a subject of debate among prominent researchers. Proponents of coconut oil vouch for its health benefits such as enhancing metabolism, boosting ketone concentration, and dermatological benefits. On the contrary, opponents continue to warn consumers about its potential health impacts including high cholesterol, intestinal distress, thyroid problems, and so on. Two recent reports published in NCBI unveil that consumption of coconut oil not only has neuropositive impacts for Alzheimer patients, but also curtails the cognitive deficits associated with this disorder. Moreover, a recent study conducted by researchers at the University of Cambridge has found that coconut oil reduces the risk of cardiovascular diseases.
On the other hand, a significant section of researchers are of the opinion that coconut oil is bad for health. Dr. Karin Michels, Dean of Harvard T.H. Chan school of Public Health, condemned the idea of coconut oil consumption. The ambiguities over health benefits of coconut oil will continue to have an impact on the bottom lines of stakeholders. The burst in coconut oil sales, especially during the period 2011-2015, is steadily waning, as consumers look for alternatives that are not mired in controversy. It is highly likely that further negative press will lead to a steady decline in global sales over the course of the forecast period.
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Coconut oil has witnessed considerable demand in the last decade on account of its unmatched versatility. However, supply inconsistencies and sluggish rate of production have raised up coconut oil prices to a new high. According to sources, the rising demand for coconut-based variants such as coconut sugar and coconut water have skyrocketed in the past few years, exhausting raw materials used for oil manufacture. The inability of manufacturers to streamline the supply framework as per demand generated for coconut oil has led to this surge in prices. It is likely that this increase in prices might lead to debut of adulterated coconut oil in the market, which might pose threats for the product integrity quo of coconut oil market.
Fuel crisis and rising concerns of the society regarding depletion of non- renewable energy resources have led to a quest for alternative options. Several efforts have been directed toward energy generation from various alternative sources, including solar and biological sources. Generation of energy by converting trapped energy from sunlight to electricity and renewable agricultural products to fuel have been prevailing as the conventional practices. A trend of using coconut oil to produce biodiesel fuel as an alternative to conventional diesel fuel has gained prominence in the past few years. A flurry of innovations in this regard might act as an elixir boosting prosperity of the coconut oil market in the foreseeable future.
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