Coconut yogurt is a plant-based alternative to traditional dairy, made from the rich milk of mature coconuts. This yogurt boasts the same feel and taste as traditional dairy yogurt, all the while catering to vegans, lactose-intolerant, or allergenic consumers.
Manufactured like traditional yogurt, this variety is fermented with live bacterial cultures such as Lactobacillus bulgaricus and Streptococcus thermophilus. These same cultures ferment the natural sugars of the coconut milk into lactic acid during processing, creating a thick consistency and giving it that tangy taste typical of yogurt. Rich and creamy, the addition of plant-based thickeners and/or stabilizers such as tapioca starch or guar gum may be added to enhance the overall consistency. This variety is naturally full of good fats, in particular, medium-chain triglycerides, or MCTs, which have proven to be effective for quick energy and metabolism. It's also probiotic, supporting gut health. Besides plain, the products are available in a wide range of flavors, where fruits, natural sweeteners, and botanical extracts meet consumer demand for taste diversity. This has been popularly used for breakfast dishes, smoothie bases, desserts, and even savory dishes. With increased consumer awareness regarding health, sustainability, and ethical consumption, coconut yogurt has emerged among the fastest-growing divisions within the plant-based dairy industry, marrying indulgence with nutrition through creaminess, exotic flavor, and a naturally wholesome profile.
The global coconut yogurt market reached a value of USD 546.15 Million in 2024. According to IMARC Group, the market is projected to reach USD 1,966.85 Million by 2033, at a projected CAGR of 14.2% during 2025-2033. Global trends in shifting consumer preferences toward plant-based and lactose-free diets, and enhanced awareness of gut health and sustainability, drive the global coconut yogurt market. The increasing prevalence of lactose intolerance and dairy allergies among consumers is one of the main driving factors behind seeking non-dairy alternatives that can provide familiar taste and texture. In this regard, coconut yogurt, with its creamy texture and rich flavor, represents one of the most appealing substitutes for traditional dairy yogurt. Additionally, the surge in veganism and flexitarian eating habits has significantly increased demand for the product, especially in developed markets where food choices are based on ethical and environmental considerations. There is an increasing interest by consumers in plant-based products that have minimal ecological footprints, and coconuts are seen as a sustainable raw material since they are grown on perennial trees that require limited land and water.
Another strong catalyst for growth is health consciousness. Coconut yogurt is viewed as a functional food-a source of both probiotics for digestive health and healthy fats from coconut milk. Food processors took notice and responded with fortified versions, laced with vitamins, proteins, and natural fibers. Supporting the rise of coconut yogurt is also the clean-label/natural ingredients movement, as it contains no artificial preservatives or animal-based additives. Flavor variety, innovation in texturing, and creative packaging-such as on-the-go cups and drinkable formats-have also contributed to its growing audience. Its retail expansion via supermarkets, organic stores, and online platforms increases accessibility even further. All these factors-the convergence of health, sustainability, ethical consumption, and product innovation-continue to drive the robust global growth of coconut yogurt in the plant-based dairy landscape.
One of our clients reached out to us to conduct a feasibility study for setting up a medium scale coconut yogurt manufacturing plant.
We developed a comprehensive financial model for the setup and operation of a proposed coconut yogurt manufacturing plant in India. This plant is designed to manufacture 500 tons of coconut yogurt annually.
Manufacturing Process: The manufacturing of coconut yogurt is a controlled process developed to match the texture, taste, and nutritional profile of traditional dairy yogurts but retain a completely plant-based composition. The process starts with choosing ripe coconuts that are dehusked, deshelled, and grated for coconut milk. This milk, rich in natural fats and nutrients, serves as the base of the yogurt. Then, the milk is filtered and standardized to obtain a uniform fat content, usually within the range of 10–20%, depending on the desired creaminess of the final product. Since coconut milk does not contain the same natural proteins found in cow’s milk that help give yogurt its structure, it is usually blended with a stabilizer or thickener like tapioca starch, pectin, or guar gum to enhance viscosity and inhibit separation during fermentation. Next, the standardized mixture undergoes pasteurization at approximately 85–90°C to kill off unwanted microorganisms and to uniformly hydrate stabilizers. Following this, the mixture is cooled to approximately 40–45°C, which is the ideal temperature for bacterial fermentation. At this stage, starter cultures containing probiotic strains such as Lactobacillus bulgaricus, Streptococcus thermophilus, and sometimes Bifidobacterium species are introduced into it. The mixture rests in fermentation tanks for 6–8 hours, during which time bacteria change natural sugars into lactic acid by fermentation, imparting a tangy flavor and thick texture. Upon attaining the required acidity and consistency, fermentation is stopped through fast cooling. The yogurt may now be further blended with natural sweeteners, fruit purees, or flavors, homogenized for smoothness, and packaged under hygienic conditions in chilled containers. It is finally stored at low temperatures to preserve freshness, texture, and viability of probiotics until the point of consumption.

Get a Tailored Feasibility Report for Your Project Request Sample
Raw Material Required:
The basic raw materials required for coconut yogurt manufacturing include:
Machineries Required:
Techno-Commercial Parameter:
Our financial model for the coconut yogurt manufacturing plant was meticulously developed to meet the client’s objectives, providing an in-depth analysis of production costs, including raw materials, manufacturing, capital expenditure, and operational expenses. By addressing the specific requirements of manufacturing 500 tons of coconut yogurt annually, we successfully identified key cost drivers and projected profitability, considering market trends, inflation, and potential fluctuations in raw material prices. This comprehensive financial model equipped the client with valuable insights into strategic decision-making, demonstrating our commitment to delivering high-quality, client-focused solutions that ensure the long-term success of large-scale manufacturing ventures.
IMARC is a global market research company that offers a wide range of services, including market entry and expansion, market entry and opportunity assessment, competitive intelligence and benchmarking, procurement research, pricing and cost research, regulatory approvals and licensing, factory setup, factory auditing, company incorporation, incubation services, recruitment services, and marketing and sales.
Under our factory setup services, we assist our clients in exploring the feasibility of their plants by providing comprehensive financial modeling. Additionally, we offer end-to-end consultation for setting up a plant in India or abroad. Our financial modeling includes an analysis of capital expenditure (CapEx) required to establish the manufacturing facility, covering costs such as land acquisition, building infrastructure, purchasing high-tech production equipment, and installation. Furthermore, the layout and design of the factory significantly influence operational efficiency, energy consumption, and labor productivity, all of which impact long-term operational expenditure (OpEx). So, every parameter is covered in the analysis.
At IMARC, we leverage our comprehensive market research expertise to support companies in every aspect of their business journey, from market entry and expansion to operational efficiency and innovation. By integrating our factory setup services with our deep knowledge of industry dynamics, we empower our clients to not only establish manufacturing facilities but also strategically position themselves in highly competitive markets. Our financial modeling and end-to-end consultation services ensure that clients can explore the feasibility of their plant setups while also gaining insights into competitors' strategies, technological advancements, and regulatory landscapes. This holistic approach enables our clients to make informed decisions, optimize their operations, and align with sustainable practices, ultimately driving long-term success and growth.
Have a question or need assistance?
Please complete the form with your inquiry or reach out to us at
Phone Number
+91-120-433-0800