According to the Zhitong Finance APP, China International Capital Corporation (CICC) released a research report stating that in recent years, with the rise of Luckin Coffee's fresh coconut latte and the increasing health awareness among consumers, the penetration rate of coconut water has continued to rise among consumers. According to ZhiShi Consulting, the market size of China's coconut water industry is expected to reach USD 1.1 billion in 2024, with a CAGR of 61% over the past five years, far exceeding the overall growth rate of soft drinks. According to Euromonitor, the per capita consumption of coconut water in China is expected to be 0.1 liters per person in 2024, lower than that of the United States and Thailand (1.1/0.2 liters per person), indicating potential for future growth. Currently, the coconut water segment is one of the fastest-growing segments in the soft drink industry. Considering the joint drive from both supply and demand sides, the long-term growth prospects of the coconut water segment are promising.

CICC's main viewpoints are as follows:

Coconut Water Industry: A High-Prosperity Emerging Segment, Focus on Industry Pattern Evolution

According to ZhiShi Consulting, the market size of China's coconut water industry is expected to reach USD 1.1 billion in 2024, with a CAGR of 61% over the past five years, far exceeding the overall growth rate of soft drinks. According to Euromonitor, the per capita consumption of coconut water in China is expected to be 0.1 liters per person in 2024, lower than that of the United States and Thailand (1.1/0.2 liters per person), indicating potential for future growth. With consumers increasingly pursuing health and a gradually enriched supply side, it is expected that both supply and demand will drive the continued rapid growth of China's coconut water industry. According to ZhiShi Consulting, the CR5 of China's coconut water industry is 43.4% in 2024, with IFBH's market share at 33.9%, maintaining the top position, while the market outside of leading brands is relatively fragmented.

Currently, coconut water brands can be divided into four categories: international brands, local brands, emerging brands, and new retail brands. The overall industry pattern has not yet stabilized, and future evolution should be monitored.

Supply Chain, Brand Momentum, and Quality-Price Ratio as Core Competitive Factors in the Industry

1. Coconut water is a natural health beverage, and the product's taste is highly related to the quality of the raw coconut. Additionally, since China's coconut raw materials mainly rely on imports, securing high-quality supply sources and maintaining high supply chain efficiency are crucial for coconut water brands. 2) The product homogeneity of coconut water is quite serious, and consumer decisions heavily rely on brand trust; therefore, strong brand momentum is also a key competitive factor. 3) In the context of quality-price ratio consumption trends and intensified industry competition, coconut water brands with a high quality-price ratio are more likely to gain consumer favor.

Overview of Major Companies in the Coconut Water Industry

IFBH (06603), originating from Thailand, focuses on coconut water beverages. Its core brand, IF, has grown rapidly in recent years, with a light asset model and diversified marketing helping it lead the market. Since 2020, based on retail sales, IFBH has maintained its position as the top coconut water beverage brand in mainland China for five consecutive years, with revenue/net profit expected to reach USD 158 million/33 million in 2024, representing year-on-year growth of +80%/+99%; VitaCoco (COCO.US) is the largest coconut water brand globally and is currently planning to accelerate its localization development in China; Jia Guo Yuan, relying on the supply chain advantages of Jia Nong Group's more than 20 years in Thai coconut supply, has gained recognition in the high-end coconut water industry; Ye Shu Group and HuanleJia (300997.SZ) have both launched NFC non-concentrated coconut water into the coconut water segment through a dual-line layout of "coconut juice + coconut water." Risk Factors

Raw material price fluctuation risk; intensified competition risk; product quality and safety issues; exchange rate fluctuation risk