Axelum Resources, the country’s leading fully-integrated manufacturer and exporter of world-class coconut products, said Thursday it is increasing its production capacity of organic coconut milk powder to 1,500 metric tons annually.
It said the increase in production output is in anticipation of the rapid grow of the coconut milk powder segment.
Organic coconut milk powder is a fine, creamy white meat substance squeezed from fresh coconut milk that is dairy-free and made from all-organic components. It is primarily used as a culinary ingredient for baked goods, curry dishes, packed food sauces and confectioneries.
Axelum said organic coconut milk power is also being used as a raw input for collagen-based products which is forecasted to have a global market size of $7.5 billion by 2027, expanding at a pace of 6 percent compounded annual growth rate.
“The continued demand for coconut milk powder for traditional and new applications presents an exciting growth opportunity for Axelum. Organic coconut milk powder remains one of our most profitable products given its unique characteristics and premium pricing,” said Axelum president and chief operating officer Henry Raperoga.
Axelum noted increased demand for organic coconut milk power from specific customers. The company said one of the largest and fastest growing American collagen brands, which is penetrating Asia and Europe, sought the company’s support in adding capacity to service their organic coconut milk powder requirements.
Coconut milk powder segment accounted for 15 percent of Axelum’s revenues in the first nine months.
The company uses all the parts of the coconut in its production, resulting in a full line of coconut products including coconut water, desiccated coconuts, coconut milk powder, coconut milk/cream, reduced fat coconut, sweetened coconut, coconut oil and other coconut products.
Its main production facility is located in Medina, Misamis Oriental while manufacturing and distribution facilities are in the US and Australia.
The company caters its products to multinational food and beverage companies, confectioneries and bakeries.
It also provides customized products to international and local brands. Its export markets of include the US, Canada, Australia, New Zealand, Europe, Middle East and Japan.
The share price of Axelum rose 1.37 percent Thursday to close at P3.70.