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Publish date: Wed, 14 Feb 2024, 03:49 PM


The global coconut products market size is expected to reach USD 38.58 billion by 2030, expanding at 8.4% CAGR from 2023 to 2030.

Coconut milk products are growing in popularity across the globe as a result of growing consumer concern over animal health and the rise in the number of people who cannot tolerate lactose. Increased awareness, the impact of the pandemic, expanding product portfolios, and increased research & development are factors propelling the global coconut products industry.

Moreover, coconut oil is increasingly being used by cosmetic industries to create soaps & oils for hair and skin care. Due to its moisturizing properties, coconut oil-based personal care products are gaining popularity in the personal care industry. The market for coconut products is expected to grow over the coming years as a result of the massive demand for coconut oil in cosmetics and its increasing popularity in food applications.

Consumers are increasingly shifting towards fitness and wellness trends, which has resulted in the growing demand for natural energy drinks such as coconut beverages over caffeinated and sugar-based ones. Due to the nutritional qualities offered by drinks such as coconut water, it is becoming increasingly popular as a natural energy drink.

Moreover, the increasing preference toward a plant-based diet is also influenced by environmental issues, ecological concerns, ethical or religious beliefs, health consciousness, and movements like veganism. This is expected to play a major role in the adoption of coconut products.

In addition, coconut products are increasingly used in the healthcare sector, due to their growing utilization in the treatment of irritable UV ray protection, bowel syndrome, and obesity treatment. Similarly, the use of coconut oil, which is a component of several traditional medicinal systems like Ayurveda medicine, has grown in popularity as these practices become more widespread in western nations. As a result of the therapeutic benefits of traditional medicine and their growing emphasis on natural healing techniques, their demand is rising, fueling market revenue growth.

The Asia Pacific region is expected to account for the largest market share over the forecast period due to various factors. These factors include cheap labor availability, humid & equatorial climate, and availability of processing facilities. 

You can google to find out the current booming coconut businesses worldwide especially in China. 

Why is coconut suddenly becoming so popular in China?

Luckin could be a culprit. In April 2021, Luckin Coffee launched “Coconut Latte” – using coconut milk instead of cow milk – which quickly became a major hit. During the 1st year of launch, Luckin claimed to have sold more than 100 million cups. That’s a lot of coconut milk. 


Beverage firms ready to satisfy consumers eager to toast coconut-based drinks

China's coconut-based beverage consumption is becoming so popular that enterprises are stepping up efforts to explore more product categories to grasp market opportunities.

According to a recent report from market research firm LeadLeo Research Institute, between 2017 and 2021, China's coconut-based beverage market surged from 10.3 billion yuan ($1.5 billion) to 14.4 billion yuan, with a compound annual growth rate of 7 percent. The market is estimated to reach 22.4 billion yuan by 2026, with a CAGR of 15.63 percent.


If you like the taste of coconut, now you have the opportunity to own part of the business.

The Eramas Group of Companies

Eramas group is in the process of going public through reverse take over of SCGM which is currently a PN16 cash company after disposing off its plastic business to Japanese.

Some major shareholders of Eramas group have already acquired 24% shareholdings from the existing controlling shareholders, the Lee brothers. The acquisitions were done through married deals at RM0.65 per share in early 2023.

Eramas Group of Companies :

Sales and marketing companies are :

1. Eramas Marketing (SEA) Sdn Bhd (Incharge in Malaysia market)

commenced in November 2019. Located in Bandar Teknologi Kajang and it is a sales and marketing company under Eramas Group which cover Malaysia market.

2. Erapoly Global Sdn Bhd (Incharge in oversea market)

commenced in 2008 sharing same office with Eramas Marketing. Erapoly is specialised in export of the Coconut and palm related products such as RBD Coconut Oil, Coconut Milk/Cream, Coconut Powder, RBD Palm Olein, Red Palm Oil, Shortening, Margarine, Ghee, Soap series, Soap Noodle, Sweetened Condensed Milk, Evaporated Filled Milk and etc. Erapoly also provide OEM service.

Manufacturing plants are :

1. Eramas Ingredients Sdn Bhd (Bdr Enstek, Negeri Sembilan)

is located in Bandar Enstek, Negeri Sembilan. Focusing on spray dry production, it has a capacity of 1000MT per month. It can produces all kind of food related powder ranging from coconut to palm series.

2. PT Eramas Coconut Industries (Medan, Indonesia)

is our oversea manufacturing plant located in Medan, Indonesia. Coconut milk/cream, coconut water and desiccated coconut are their main products. The company focused in product innovation, quality and safety to ensure product meets customer satisfaction.

Erapoly Global Sdn Bhd was a winner of 2021 Malaysia Golden Bull Awards, and

Eramas Marketing (SEA) Sdn Bhd was a winner of 2023 Malaysia Golden Bull Awards.

Below are some of their wide range of products;

You can read more about the Eramas group of companies at https://emma.com.my/eramas-group-of-companies/

SCGM has changed its financial year end to 31 December to facilitate the corporate exercise for assets injection by Eramas group. SCGM currently has no assets other than around RM120 millions (RM0.62 per share)  net cash residing in a designated bank account only permitted to be utilised for acquisition of new assets or distribution to shareholders. SCGM's clean financial conditions makes it an attractive target for reverse take over.

Successful transformation of SCGM into a prominent coconut products producer promises SCGM of bright future with excellent growth prospect. SCGM's cash pile provides Eramas group with fresh capital for business expansion to meet the growing demand for coconut products.

In Mar 2023, the Sabah government has signed a deal with Malaysia’s biggest coconut-based manufacturing company Linaco Group to build an RM200mil integrated processing factory.

In June 2023, a chinese firm Huanlejia Food announced plans to invest $18.4 million to build a coconut processing project in Vietnam’s Mekong Delta. 

Recently listed coconut companies Vita Coco and Thai Coconut Public Company are both trading at very high price earnings (PE) multiple of 32 and 28 times respectively indicating high investor confidence in the future prospect of coconut businesses.

SCGM is believed to be in final stages of getting approval from the securities commission to become the first listed pure coconut company in Malaysia. Announcement of proposed acquisitions is likely to be made by SCGM within 3 months.


*** I do own this stock. This is not a buy call and buy at your own risk.  

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Bear in mind that SCGM is currently a PN16 Cash company. If SCGM failed to regularize its business within the given time, it will be delisted and all money in the designated bank account will be distributed to the shareholders. Any proposal needs to be approved by shareholders in an EGM and designated persons are not allowed to vote. Therefore, existing shareholders can reject the proposal if it deemed unattractive.

2 months ago


Just88, Thank you for sharing.

2 months ago


Just88, the major shareholders of Eramas Group are Chin Kok Tian, Yan Hua Lan and Tan Ah Tek ?

2 months ago


Alibone, you are right. Chin Kok Tian and Yan Hua Lan are husband and wife, and Tan Ah Tek is their long time partner. As shown in CTOS report, they are major shareholders of Eramas group.

2 months ago



China coconut market is expanding rapidly.

1 month ago

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