Axelum Resources Corp. said Tuesday the strong demand for coconut products will underpin its growth in 2022.
“We are seeing increasing requirements for coconuts owing to stronger preferences for nutritiously-laden food labels by a thriving health-conscious population,” said Henry Raperoga, president and chief operating officer of Axelum, the country’s leading fully-integrated manufacturer and exporter of world-class coconut products.
“Last year, Axelum catered to a larger customer base and managed to outpace industry growth to accelerate global market leadership,” Raperoga said in a disclosure to the stock exchange.
Data showed coconut exports in the first 11 months of 2021 reached $1.74 billion, up 54 percent from $1.13 billion a year earlier, strengthening the country’s position as one of the leading suppliers of coconut in the global market.
Coconut oil and desiccated coconut led all major segments by registering growth of 54 percent and 49 percent, respectively.
Axelum, citing third-party estimates, said the global coconut products market is projected to reach $31.1 billion by 2026, with a compounded annual growth rate of 14 percent from 2018.
Aside from traditional categories, market drivers include the fast-rising coconut water and coconut milk powder segments.
“Coconut water is a popular and healthier alternative to sugary and caffeinated drinks while coconut milk powder is an extensively-used universal food ingredient particularly for much-sought all-natural diets,” Axelum said.
Axelum said it recently expanded its nut processing and storage capabilities while improving overall manufacturing yields across its core products.
Axelum also continues to maintain steady raw material supply to consistently service its tier-one clientele composed of prominent international household brands.
Axelum said it is incubating multiple food products targeted for the American consumer market, with planned rollouts in the second half of the year.
The company secured fresh fiscal incentives from the Board of Investments as a qualified entity under the Corporate Income Tax and Incentives Reform Act for organic/non-organic plant-based infused coconut drinks/juices and agglomerated coconut milk powder and other plant-based infused coconut milk powder products.
The share price of Axelum closed unchanged at P2.88 Tuesday.